Section 2 true/false quiz
The priority of a lien is based on the amount of the lien. In the event of foreclosure, the larger the lien balance, the higher its priority.
False. As a general rule, lien priority is based on the recording date: first to record, first in right.
A property tax lien would have lower priority than a mortgage.
False. Real property tax liens and assessment liens always take priority over all other liens.
The Singers' family home, which is homesteaded, is worth $330,000. There is a $290,000 deed of trust on the property. A judgment creditor can successfully foreclose on the property.
False. The homestead exemption for a member of a family unit in California is $100,000. Here, the net value of the property (the difference between the property value and the liens against it) is only $40,000, so foreclosure will not help a judgment creditor.
The priority of a mechanic's lien is determined by its recording date.
False. The priority of a mechanic's lien depends on the date the work started.
A mortgage signed on March 10 but not recorded would have lower priority than a mortgage that was signed and recorded on March 17.
True.
A person may have only one homestead at a tim
True.
