What determines the priority of a lien is, in most cases, the date it was recorded in the county’s public records: the earlier lien outranks the later one under the “first in time, first in right” rule. That default governs mortgages, judgment liens, and most private claims against real property. But several categories of liens override it. Property tax liens jump to the top regardless of when they arose. Federal tax liens follow their own statutory rules that depend on when the IRS files public notice. Purchase-money mortgages leapfrog pre-existing claims against the buyer. Mechanic’s liens often “relate back” to the day work began rather than the day the paperwork was filed. And senior lienholders can voluntarily step aside through a subordination agreement.
The Default Rule: Recording Date Controls
The U.S. Supreme Court established the “first in time, first in right” framework decades ago, and it remains the baseline for resolving competing claims against the same property.1Internal Revenue Service. IRS Chief Counsel Advice 200922049 When a mortgage or lien document is accepted at the county recorder’s office, it gets stamped with an exact date and time. That timestamp is the lien’s place in line.
A simple example. A lender records a purchase mortgage on March 1. Two years later, a second lender records a home equity lien on June 15. If the home sells in foreclosure, the March 1 mortgage is paid in full before the June 15 lien receives anything. When the sale price doesn’t cover both debts, the junior lien is wiped out. That’s the engine behind nearly every priority dispute.
Recording also puts the world on notice. Any lender considering a loan secured by real estate can search the records and see what already exists. A lien that is never recorded is invisible to later creditors, and in most states that invisibility can cost the unrecorded lienholder its priority altogether. The practical rule for any creditor is the same: record immediately.
Property Tax and Special Assessment Liens Come First
A real property tax lien skips the chronological line entirely. When a homeowner falls behind on property taxes, the resulting lien takes priority over virtually every other claim on the property, including mortgages recorded years earlier. Federal law itself acknowledges this: a federal tax lien loses to a local property tax lien when state law gives the property tax lien priority over earlier-recorded security interests.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons Governments depend on this revenue, and the law makes sure the claim can’t be buried under private debt.
Special assessment liens work the same way. When a municipality charges a property for a local improvement like road paving or sewer work, that assessment lien also receives priority over earlier-filed security interests and even federal tax liens under the same federal statute.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons A first-mortgage lender can find itself behind a government charge it had no hand in creating.
Homeowners’ association liens are a more limited exception. In roughly 20 or more jurisdictions that have adopted versions of the Uniform Common Interest Ownership Act, an HOA can claim super-priority status for a portion of unpaid assessments, typically capped at six to nine months of regular dues plus reasonable collection costs. That slice sits ahead of the first mortgage; the rest of the HOA’s claim does not. The exact rules and dollar limits vary significantly by state.
Federal Tax Liens Depend on When the IRS Files Notice
When someone owes the IRS and ignores a demand for payment, a federal tax lien automatically attaches to everything that person owns, including real estate, personal property, and financial assets.3Office of the Law Revision Counsel. 26 USC 6321 – Lien for Taxes But that automatic lien is not enforceable against certain third parties until the IRS actually files a Notice of Federal Tax Lien. Until that public notice is on record, the lien loses to purchasers, holders of security interests, mechanic’s lienors, and judgment lien creditors.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons
Once the IRS files notice, the tax lien’s priority is generally set by the filing date under the usual first-in-time rules. Certain interests remain protected even after the notice goes on record. A mechanic’s lien for residential repair work on a home with four or fewer units beats a filed federal tax lien, as long as the contract price falls within a statutory dollar cap that adjusts annually for inflation.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons Lenders who make disbursements within 45 days of the tax lien filing also keep their priority, provided they did not have actual knowledge of the filing.
A federal tax lien does not last forever. The IRS generally has 10 years from the date of assessment to collect, a deadline called the Collection Statute Expiration Date. After that, the lien expires. Several actions can pause or extend that clock, including filing for bankruptcy, requesting an installment agreement, or submitting an offer in compromise.4Internal Revenue Service. Time IRS Can Collect Tax A homeowner can also ask the IRS to subordinate its lien to allow a mortgage refinance, though the IRS is not required to agree.5Internal Revenue Service. What if There Is a Federal Tax Lien on My Home?
Purchase-Money Mortgages Leapfrog Older Claims
A purchase-money mortgage is the loan used to buy the property that secures it. These loans receive special priority treatment that overrides normal chronological rules. If a buyer has an old judgment lien recorded against them and then takes out a mortgage to buy a new house, the purchase-money mortgage jumps ahead of that pre-existing judgment lien. The reasoning: without the mortgage lender’s money, the buyer never would have acquired the property in the first place.
This priority also interacts favorably with federal tax lien rules. Because a purchase-money mortgage qualifies as a “security interest” under the tax code, it takes priority over a federal tax lien that has not yet been filed as a public notice.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons Even if the IRS has already assessed a tax debt against the buyer, a lender who advances funds to finance the purchase and records its mortgage will generally hold the senior position, as long as the IRS had not filed its notice first.
Mechanic’s Liens and the Relation-Back Doctrine
Contractors, subcontractors, and material suppliers who improve real property can file a mechanic’s lien when they are not paid. What makes these liens unusual is how their priority date is set. Rather than dating from when the lien paperwork is filed, a mechanic’s lien in many states “relates back” to the date work first began on the project. A contractor who started pouring a foundation in January but did not file the lien until September can claim priority as of January.
The practical impact is significant. A lender who records a mortgage in March, after the foundation work started but before the lien was filed, can find itself behind the mechanic’s lien. That’s why construction lenders have title companies physically inspect the property before disbursing funds, looking for any sign that work has already begun. Under the federal tax code, a mechanic’s lienor’s priority date is the earliest date the lien becomes valid under local law against later purchasers who lacked actual notice, but no earlier than when the lienholder actually began furnishing services, labor, or materials.2Office of the Law Revision Counsel. 26 USC 6323 – Validity and Priority Against Certain Persons
Mechanic’s liens come with strict filing deadlines. The window after completing work varies widely by state, typically ranging from about 90 days to eight months. Miss that window and the lien right evaporates regardless of how much is owed.
Where Judgment Liens Fall
When someone wins a lawsuit and obtains a money judgment, they can convert that judgment into a lien by recording it in the county where the debtor’s real property is located. In many states, a recorded judgment lien attaches to all real estate the debtor owns in that county, including property acquired later while the lien remains active.
Judgment liens follow standard first-in-time priority rules. A judgment lien recorded in 2024 ranks behind a mortgage recorded in 2020 and ahead of one recorded in 2025. Under federal law, a judgment lien from a federal civil case lasts 20 years and can be renewed for one additional 20-year period if the court approves and the renewal is filed before the original period expires.6Office of the Law Revision Counsel. 28 USC 3201 – Judgment Liens State judgment liens have shorter durations, generally five to ten years depending on the state, though most allow renewal.
Judgment liens lose ground to several of the special categories already described. A purchase-money mortgage leapfrogs any judgment lien already recorded against the buyer. Property tax liens outrank them. And where the IRS has not yet filed public notice, even a federal tax lien that technically arose first can lose to a judgment lien that was properly recorded in the meantime.
Subordination Agreements Can Reshuffle the Order
Priority can be rearranged voluntarily through a subordination agreement, a contract in which a senior lienholder agrees to let a junior lien move ahead of it. This comes up most often during a mortgage refinance. Suppose a homeowner has a first mortgage and a home equity line of credit. If the homeowner refinances the first mortgage, the original loan is paid off and its lien released. Without intervention, the home equity line would automatically slide into first position, and the new refinance loan would land in second place.
No lender wants to write a full mortgage into the second-priority spot, so the refinancing lender will insist that the home equity lender sign a subordination agreement keeping the home equity line in its junior position. The home equity lender often agrees, sometimes for a small processing fee, if the homeowner has sufficient equity and the refinance does not dramatically increase the total debt on the property. The agreement needs to be specific about the parties, loan amounts, recording information, and property description, and it must contain unconditional subordinating language to be enforceable and insurable.
A Lien That Expires Loses Its Spot
Every lien has a lifespan, and a lien that expires loses its priority entirely. Federal tax liens expire 10 years after assessment, subject to pauses and extensions.4Internal Revenue Service. Time IRS Can Collect Tax Federal judgment liens last 20 years with a single renewal option.6Office of the Law Revision Counsel. 28 USC 3201 – Judgment Liens State judgment liens are shorter, typically five to ten years, though most states allow at least one renewal. Mechanic’s lien filing deadlines run from roughly 90 days to eight months after work is completed, and missing that deadline means the lien never comes into existence at all.
Property tax liens are the outlier: they generally persist indefinitely until the taxes are paid, and the taxing authority can eventually force a sale to collect. Mortgage liens remain in effect for the life of the loan. Once any lien is satisfied through payment, the creditor is legally required to file a release, and a satisfied lien left on record can create real complications when the owner tries to sell or refinance.