CHCP CHCP Lien & Encumbrance Resolution

Question 1

A mechanic's lien is filed by which party?

Accepted Answer

A contractor or supplier who has not been paid for labor or materials

Answer

The mortgage lender

Answer

The county recorder's office

Answer

The homeowner's association

Question 2

Which type of lien is considered a general lien because it attaches to all real and personal property owned by the debtor?

Accepted Answer

Judgment lien

Answer

Mortgage lien

Answer

Mechanic's lien

Answer

Tax lien for special assessments

Question 3

A property tax lien holds what priority position relative to other liens in most US states?

Accepted Answer

It has the highest (superior) lien priority

Answer

It is subordinate to all mortgage liens

Answer

It is equal in priority to a first mortgage

Answer

It only has priority over mechanic's liens

Question 4

The principle that the first lien recorded in the public records generally has the highest priority is known as:

Accepted Answer

First-in-time, first-in-right rule

Answer

Lis pendens doctrine

Answer

Subrogation principle

Answer

Estoppel by deed

Question 5

When a homeowner pays off their mortgage, the lender must release the lien by recording which document?

Accepted Answer

Deed of reconveyance or satisfaction of mortgage

Answer

Quit-claim deed

Answer

Warranty deed

Answer

Lis pendens

Question 6

A notice of lis pendens provides constructive notice that:

Accepted Answer

Litigation is pending that may affect title to the property

Answer

The property taxes are delinquent

Answer

A mechanic's lien has been filed

Answer

The mortgage is in foreclosure