Property Ownership

Which type of property interest is created when a bank holds a lien on a South Carolina property due to an unpaid mortgage?

AA leasehold interest
BAn encumbrance (specific lien) on the property✓ Correct
CA reversionary interest
DA fee simple interest

Explanation

A mortgage or deed of trust creates a specific lien on the property as security for the debt. A lien is an encumbrance that can affect the owner's ability to sell or refinance the property.

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