Illinois Real Estate Practice Exam

The difference between a specific lien and a general lien is that:

1. A general lien covers all of a debtor's property while a specific lien covers a specific property

2. A specific lien covers all of a debtor's property while a general lien covers a specific property

3. A specific lien is voluntary while a general lien is involuntary

4. A general lien is superior to a specific lien

The correct answer is: A general lien covers all of a debtor's property while a specific lien covers a specific property

The correct answer highlights the fundamental distinction between specific and general liens in real estate law. A specific lien is attached to a particular piece of property, meaning it only affects that specific asset. For example, a mortgage is a specific lien because it is tied directly to the property being financed; if the borrower defaults, the lender can only take action against that specific property. On the other hand, a general lien encompasses all of a debtor's assets. This type of lien can apply to various properties owned by the debtor, such as a judgment lien obtained from a court, which can allow creditors to reach any property owned by the debtor to satisfy a debt. The other choices do not accurately describe the relationship between specific and general liens. Understanding this distinction is crucial for real estate professionals as it affects how liens are prioritized and enforced in property transactions.