What has the highest priority among liens?

The option that states real property taxes and special assessments holds the highest priority among liens is accurate because, in the hierarchy of lien priority, government liens typically take precedence over all other types of liens. This is established to ensure that municipalities can efficiently collect taxes and assessments required for public services and infrastructure.

When property is sold, any outstanding real property taxes or special assessments must be paid first before any other claims, such as those arising from mortgages, judgments, or mechanic's liens, are settled. This policy is intended to protect the interests of the taxing authority and maintain effective tax collection.

In contrast, other options involve liens that, while significant, do not surpass the priority of real property taxes. For example, mechanic's liens can compete with one another, but they will not take priority over tax obligations. Similarly, judgments might arise from personal disputes or actions that do not affect the governmental right to collect taxes. HOA dues, while important for maintaining common areas in a community, again are subordinate to the priority of property taxes.

Understanding lien priority is crucial in real estate transactions, as it influences the risk and financial responsibility of buyers and sellers involved.