A municipal lien is generally a first lien on land, with exceptions for prior liens from which levels?

• A. State and Federal
• B. County and Municipal
• C. City and Township
• D. Local and Regional

Answer: (A)

Municipal liens, like those for local property taxes and assessments, are typically the first lien on a property because local governments rely on them to fund services. The exceptions occur when higher levels of government have claims that outrank local liens. State and federal liens can take priority over a municipal lien due to statutory rules giving priority to state and federal tax obligations. So, if a property has both a municipal tax lien and a state or federal tax lien, the state or federal lien is paid first from any proceeds, and the municipal lien is satisfied afterward. The other levels listed do not have this overriding priority, which is why the correct focus is on state and federal liens.