What type of lien takes priority over other debts if a property is sold?

A tax lien takes priority over other debts when a property is sold because it is a statutory lien created by law to secure the payment of taxes owed to the government. Tax liens are considered superior to other types of liens, including voluntary, involuntary, and judgment liens. This means that if a property goes into foreclosure or is sold, any outstanding tax obligations must be satisfied before other creditors collect on their debts.

The precedence of tax liens ensures that government entities, which rely on tax revenue for funding public services, have the ability to recover unpaid taxes, thus reinforcing the importance of tax collection in maintaining community resources and infrastructure. This priority is a key principle in real estate law, making understanding tax liens essential for anyone involved in property transactions.