What is the definition of a lien priority?

A lien priority refers to the order in which claims or liens against a property are prioritized in terms of payment, especially in the event of a sale or foreclosure. This ranking dictates which creditors will be paid first from the proceeds of a sale, with higher-ranked liens being satisfied before lower-ranked ones. For example, a mortgage lien generally has a higher priority than a mechanic's lien. Understanding lien priority is crucial for investors, buyers, and financial institutions as it affects the security of their investment and the risk involved.

The other options do touch on important aspects of real estate and property rights, but they do not accurately capture the specific concept of lien priority. The legal status of the property is broader and pertains to ownership and rights associated with it. The determination of financial valuation refers specifically to assessing a property's worth rather than how claims are prioritized. Rights of tenants focus on their legal entitlements in relation to rental agreements, which again does not connect directly to the sequence of lien claims.