National Real Estate Practice Exam

Which of the following is an example of a specific lien?

1. Utility easement

2. Mechanics lien

3. General mortgage

4. Common area maintenance fee

The correct answer is: Mechanics lien

A specific lien is a legal claim against a property that is tied to a specific asset or specific property, as opposed to a general lien, which can apply to multiple assets owned by an individual. The mechanics lien serves as a prime example of a specific lien, as it is filed by contractors or suppliers who have provided labor or materials for a particular property. If the property owner fails to pay for the services rendered, the contractor can place a lien on that specific property to recover the owed amount. This type of lien ensures that the contractor has a legal right to claim against that particular property, giving them priority over other creditors in the event of a sale or foreclosure. It directly links the debt to the property on which the work was performed, which is the defining characteristic of a specific lien. In contrast, choices such as the utility easement and the general mortgage do not specifically claim ownership or debt tied to a single property in the same way. Utility easements grant rights of access for utility companies but don't represent a claim for repayment. A general mortgage can apply to the borrower's entire property portfolio rather than a specific asset, making it a general lien. The common area maintenance fee does not relate to a specific lien because it pertains to shared expenses