Escrow & Title
A title search in Rhode Island reveals a mechanic's lien filed by a contractor who was not paid for renovation work. This lien is an example of a:
AVoluntary lien
BInvoluntary lien✓ Correct
CEasement
DEncroachment
Explanation
A mechanic's lien is an involuntary lien—it is placed against the property without the owner's consent by a contractor, subcontractor, or materialman who has not been paid for work or materials.
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Key Terms to Know
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.
EasementA non-possessory right to use another person's land for a specific purpose.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
State-Specific Concepts
Mechanic's Lien
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