Alabama Real Estate Practice Exam

What best describes a mechanic's lien?

1. A voluntary lien for unpaid property taxes

2. An involuntary lien for services rendered and not paid

3. A general lien for outstanding mortgage debt

4. A specific lien for judicial judgments

The correct answer is: An involuntary lien for services rendered and not paid

A mechanic's lien is a type of involuntary lien, meaning it is placed on a property without the owner's consent. The purpose of a mechanic's lien is to secure payment for services that have been provided, but not yet paid for. Option A is incorrect because a voluntary lien is one that is chosen by the property owner, while a mechanic's lien is not. Property taxes are also not related to services rendered, but rather are a type of tax owed to the government. Option C is incorrect because a general lien covers all of the property owner's assets, while a mechanic's lien only covers the specific property that the services were provided for. Option D is incorrect because a specific lien is for a particular debt or judgment, while a mechanic's lien is for services that have not been paid for.