Which of the following are common types of liens?

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Multiple Choice

Which of the following are common types of liens?

Liens are claims against a property that secure payment of a debt, and they attach to the property so the debt can be satisfied before a clear title can be transferred. Mortgage liens arise when a property is financed; the loan is secured by a lien on the property, giving the lender a right to be repaid from the property if the borrower defaults. Tax liens come from unpaid taxes; government authorities can place a lien on a property to secure payment of taxes owed, often taking priority over other claims. Mechanics liens (contractor’s or supplier’s liens) occur when work or materials are provided for a property and the party isn’t paid; they give the party a security interest in the property to ensure payment. Because these three represent common ways that creditors can claim an interest in real property, all of the above are common types of liens.

Liens are claims against a property that secure payment of a debt, and they attach to the property so the debt can be satisfied before a clear title can be transferred.

Mortgage liens arise when a property is financed; the loan is secured by a lien on the property, giving the lender a right to be repaid from the property if the borrower defaults.

Tax liens come from unpaid taxes; government authorities can place a lien on a property to secure payment of taxes owed, often taking priority over other claims.

Mechanics liens (contractor’s or supplier’s liens) occur when work or materials are provided for a property and the party isn’t paid; they give the party a security interest in the property to ensure payment.

Because these three represent common ways that creditors can claim an interest in real property, all of the above are common types of liens.

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