Which type of lien has priority over all others with specific exceptions?

The correct answer is that tax liens have priority over all others with specific exceptions. Tax liens arise when an individual or business fails to pay taxes owed to the government. These liens take precedence because they are established to ensure that governments can collect revenue necessary for public services and operations.

Tax liens are typically superior to most other types of liens, including secured loans or personal warranties, which means that if a property is sold or foreclosed upon, the IRS or relevant taxing authority will be paid first from the proceeds. There are some exceptions to this priority, particularly in cases where other liens may become senior due to laws or specific circumstances (such as certain types of mechanics liens for work done on the property).

Understanding these principles is essential for dealers and operators in the vehicle sales market, as it impacts transactions involving vehicle titles, ownership transfers, and potential disputes over debts associated with those vehicles.