Practice question
A lender holds a mortgage over taxable land. The current real property tax has accrued and remains unpaid; no exemption or relief applies. The lender says that its mortgage necessarily outranks the real-property tax lien because it was privately negotiated first. Apply Section 246's priority rule.
- The private mortgage always defeats every statutory lien.
- The real-property tax lien is statutorily superior to other liens, mortgages and encumbrances.
- No tax lien exists until the property is voluntarily sold.
- The owner can eliminate the tax lien by changing lenders.
- The tax lien attaches only to the owner's unrelated bank account.
Legal references
- RA 7160, Sections 246–251; https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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