Which process is typically required for debts to be paid from a court sale?

In the context of debts being settled through the sale of a property as determined by a court, the "Priority of Liens" is the correct answer because it governs the order in which creditors are paid from the proceeds of the sale. When a property is sold at a court auction to satisfy debts, the liens against the property must be prioritized according to their legal standing.

Liens are claims made against a property by creditors until a debt owed by the property owner is satisfied. The priority of these liens determines how the money from the sale will be allocated. Typically, senior liens (those recorded earlier or attached to the property first) must be paid before junior liens. For example, if there is a first mortgage lien and a second mortgage lien on a property, the proceeds of the sale will be used first to pay off the first mortgage in full before any remaining funds can be allocated to the second mortgage.

Understanding the priority of liens is essential for real estate professionals as it affects both property owners and potential buyers. It ensures that all parties are aware of which debts must be satisfied and informs potential buyers of any existing claims on the property that could affect their ownership rights.

The other processes listed do not directly pertain to the priority of debt payment from a