Which type of interest usually has priority over a security interest in fixtures?

A prior real estate interest generally holds priority over a security interest in fixtures due to the nature of property law. Fixtures are items of personal property that become permanently affixed to real property and, as such, are treated as part of the real estate. When a mortgage or other real estate interest is established, it can secure rights to the entire property, including any fixtures.

In practice, if a lender has a security interest in the personal property or fixtures attached to a building, that interest will typically be subordinate to any existing interests in the property itself, such as a mortgage. This priority reflects the legal principle that real estate interests, particularly those recorded prior to the creation of the security interest in fixtures, take precedence in claims against the property.

Additionally, the Uniform Commercial Code (UCC), which governs secured transactions, recognizes the precedence of real estate interests. This means that any prior claims tied directly to the land or structure, including mortgages, will supersede later-filed security interests in fixtures, thus establishing their priority in encumbrance hierarchy.