California Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 740

When a home is sold to pay off unpaid debts, which debt is paid first?

Credit card debts

Personal loans

Tax liens

This is because tax liens are considered superior debts and have priority over other debts, including credit card debts, personal loans, and mortgages. This means that if a home is sold to pay off debts, the proceeds will first go towards paying off tax liens before any other outstanding debts. This is because tax liens are backed by the government and have legal priority above other types of debt. Therefore, the correct answer is C.

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Mortgage

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