Illinois Real Estate Practice Exam

Which lien is a charge or claim against a property enforced to secure payment of money?

1. Encumbrance

2. Mechanic's Lien

3. Specific Lien

4. Lien

The correct answer is: Specific Lien

The correct choice is specific lien because it directly pertains to a legal claim on a specific property to secure the payment of a debt. A specific lien is attached to a particular piece of property, meaning that if the debt is not repaid, the lienholder has the right to take action against that specific property, such as foreclosing on it to satisfy the debt. While the term "lien" is more general, describing any legal claim against property, specific liens denote a more focused application, typically used to secure obligations related to that property, such as mortgages or liens for unpaid services related to the property. Mechanic's lien, while a specific type of lien used primarily by contractors and construction professionals to secure payment for work performed on the property, is a subset of specific liens and does not universally apply to all payment situations. Finally, "encumbrance" is a broad term that describes any claim, right, or interest that can affect or restrict the ownership of property. While it encompasses liens, it does not specifically denote the particular nature of a claim against property for payment, making the term "specific lien" the most accurate answer for this question.