CHCP CHCP Lien & Encumbrance Resolution 1

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

Mechanic's liens (also called materialman's liens) are filed by contractors, subcontractors, or suppliers who furnished labor or materials to a property but were not paid.

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

A judgment lien arises from a court judgment and attaches broadly to all property the debtor owns in the jurisdiction where it is recorded.

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

Property tax liens are given super-priority status by statute, meaning they take precedence over all other liens, including first mortgages.

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

The first-in-time, first-in-right rule (also called lien priority) means liens are ranked by their recording date, with earlier recordings having superior claims.

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

A satisfaction of mortgage (or deed of reconveyance in deed-of-trust states) is recorded in the public records to officially release the lender's lien on the property.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP CHCP Lien & Encumbrance Resolution 1