Property OwnershipIntermediateCalifornia Exam

Which of the following is an example of an involuntary lien?

AA mortgage placed on property by the owner

BA deed of trust voluntarily executed by the borrower

CA mechanic's lien filed by a contractor who was not paidCorrect

DA voluntary homeowners association assessment lien

Why A mechanic's lien filed by a contractor who was not paid Is Correct

Answer C: A mechanic's lien filed by a contractor who was not paid

A mechanic's lien is an involuntary lien because it is imposed by law upon the property without the owner's consent when contractors, subcontractors, or suppliers are not paid for work or materials.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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