Final Answer:
The given statement A delinquent tax bill can take first priority regardless of a lender's right is False. Thus the correct option is (b).
Step-by-step explanation:
A delinquent tax bill does not automatically take first priority over a lender's right. Priority in real estate transactions is typically determined by the principle of "first in time, first in right." This means that the first encumbrance or lien recorded against the property holds priority. In the case of delinquent taxes, they become a lien on the property once they are assessed, but their priority is established by the date of recording, not by default. Therefore, if a lender's lien predates the recording of the delinquent tax lien, the lender's interest would generally take priority.
Additionally, the priority of liens can vary based on local laws and regulations, so it's crucial to consult specific jurisdictional rules to determine lien priority accurately. Lenders typically conduct thorough title searches to identify any existing liens, including delinquent taxes, before approving a loan. This process helps them assess the risk and determine the priority of their lien. In summary, while delinquent taxes are serious obligations that can lead to a tax lien on the property, their priority depends on the timing of recording and other relevant legal provisions.
In conclusion, the statement "A delinquent tax bill can take first priority regardless of a lender's right" is false. Priority is generally established based on the chronological order of recording, and lenders with pre-existing liens typically hold priority over subsequently recorded delinquent tax liens. However, it's essential to consider local regulations and conduct thorough due diligence to accurately determine lien priorities in specific real estate transactions.