Property OwnershipIntermediateNorth Carolina Exam

Under NC law, a 'lien' on real property is best described as:

AAbsolute ownership of the property
BA monetary claim or encumbrance against the property as security for a debtCorrect
CAn easement allowing access across the property, under typical circumstances
DA deed restriction limiting use

Why A monetary claim or encumbrance against the property as security for a debt Is Correct

Answer B: A monetary claim or encumbrance against the property as security for a debt

A lien is a claim or encumbrance against real property to secure payment of a debt or obligation; examples include mortgages, tax liens, and mechanic's liens.

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

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

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

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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