Ace the Texas Real Estate State Exam 2025 – Unlock Your Realty Dreams!

The term that refers to property taxes being the highest priority lien on real property is taxation. In the context of property law, property taxes are considered a first lien because they have precedence over other types of liens, such as mortgages or mechanic's liens. This means that if real property is sold or foreclosed, outstanding property taxes must be paid off first before creditors with lower priority claims can receive any payment.

This priority is important for local governments as it ensures that they can collect necessary funds for public services, such as schools, infrastructure, and emergency services, thereby reinforcing the significance of taxation in maintaining community resources. Other terms listed, such as assessed value, relate to the valuation of the property for tax purposes, while special assessment tax refers to taxes levied for specific public projects. A buffer zone is a planning term and does not pertain to property taxes at all. Understanding this hierarchy of liens and the impact of taxation is crucial for anyone studying real estate practices.