What kind of lien is imposed on property by statute?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A statutory lien is a type of lien that is created by law, meaning it is imposed on property without the need for the property owner’s consent. This type of lien comes into existence as a result of legislative enactment and is typically used to ensure the payment of certain obligations, such as taxes or assessments. For example, when property taxes are unpaid, a statutory lien may be placed on the property to secure the government's claim for those taxes.

This manner of lien serves specific public policy purposes, such as the collection of debts owed to the government or to protect the rights of contractors and suppliers who have not been paid for their services or materials. In contrast, voluntary liens are created when a property owner agrees to secure a debt, equitable liens arise from a court judgment, and mortgage liens are a specific type of voluntary lien where a borrower secures a loan with real estate. Each of these other liens relies on different principles and conditions for their creation.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy