Which lien is created by court order?

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Prepare for the Real Estate Ownership Exam with multiple choice questions, flashcards, and detailed explanations. Master land use controls and financing to excel on your test.

Multiple Choice

Which lien is created by court order?

Explanation:
An equitable lien is a court-imposed claim on real property used to prevent unjust enrichment. When a party has contributed value to someone else’s property or helped pay debts related to that property, a court can recognize an equitable lien to secure reimbursement, attaching to the property as a security interest. This type of lien relies on the court’s equity-based remedy, not on a contract or a statutory provision. A mortgage lien comes from a mortgage instrument; a special assessment lien comes from statute to fund public improvements; and a general lien typically arises from judgments or statutes but is not defined by a court-ordered equitable remedy.

An equitable lien is a court-imposed claim on real property used to prevent unjust enrichment. When a party has contributed value to someone else’s property or helped pay debts related to that property, a court can recognize an equitable lien to secure reimbursement, attaching to the property as a security interest. This type of lien relies on the court’s equity-based remedy, not on a contract or a statutory provision.

A mortgage lien comes from a mortgage instrument; a special assessment lien comes from statute to fund public improvements; and a general lien typically arises from judgments or statutes but is not defined by a court-ordered equitable remedy.

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