California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

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

  1. Credit card debts

  2. Personal loans

  3. Tax liens

  4. Mortgage

The correct answer is: 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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