Illinois Real Estate Practice Exam

When does a general lien apply?

1. Personal and real property

2. Specific piece of property

3. Voluntary Lien

4. Real property only

The correct answer is: Personal and real property

A general lien applies to both personal and real property because it grants the creditor a claim against all of a debtor's assets, rather than a specific piece of property. This type of lien arises from obligations unrelated to a particular piece of property, such as a court judgment or tax liability. As a result, the creditor can pursue any property owned by the debtor, including personal items, bank accounts, and real estate, to satisfy the debt. In contrast, a specific lien pertains to a particular property and is tied directly to an obligation related to that property, such as a mortgage or mechanics lien. A voluntary lien is one that the property owner actively agrees to, such as a mortgage, differentiating it from involuntary liens like tax liens or judicial liens, which may arise without the owner's consent. Finally, a general lien does not apply exclusively to real property; it encompasses personal property as well, underscoring its broad applicability.