Illinois Real Estate Practice Exam

What type of lien is created by a statute?

1. Statutory Lien

2. Involuntary Lien

3. Specific Lien

4. Voluntary Lien

The correct answer is: Statutory Lien

A statutory lien is indeed the correct choice because it is specifically created by legislation or statute. This type of lien automatically attaches to a property to secure payment for certain types of debts defined by law, such as property taxes or mechanics' liens for unpaid work performed on the property. The classification of liens automatically generated by law distinguishes them from other types of liens, which might be established through contracts or voluntary agreements. In contrast, options related to involuntary liens refer to those that are imposed against a property without the property owner's consent, which could include statutory liens. However, not all involuntary liens are statutory. Specific liens only attach to a particular property, while voluntary liens come from a borrower's agreement, such as a mortgage. Thus, statutory lien is the most precise descriptor for a lien created by legislation.