How is a lien's priority generally established?

The priority of a lien is primarily established by the date of recordation. This means that liens are typically ranked according to their chronological order of filing. When multiple liens exist on the same property, the lien that was recorded first usually takes precedence over others. This system is designed to ensure clarity and fairness when determining which creditor has the right to be paid first if the property is sold or foreclosed.

When a lien is recorded, it becomes a public record, allowing other parties to see the order of claims against the property. This timeline establishes a clear hierarchy, which is crucial for both property owners and creditors in understanding their rights and obligations. While the type of lien can affect how it functions (for example, whether it's a voluntary or involuntary lien), the fundamental principle of priority is based on the date it was recorded. The amount owed or the name of the creditor does not determine the order in which liens will be satisfied.