New York State Notary Practice Exam

In which context does the term "lien" apply when discussing property?

1. All written instruments

2. Specifically to mortgages

3. All forms of tax documents

4. Only during property sales

The correct answer is: All written instruments

The term "lien" refers to a legal right or interest that a lender or a creditor has in another person's property, granted until the obligation owed by the property owner is satisfied. This legal mechanism applies to various contexts beyond just one specific situation. When considering "all written instruments," it encompasses a wide range of legal documents that can create a lien. For instance, these can include mortgages, mechanic's liens, judgment liens, and tax liens. Each of these establishes a creditor's claim against property until the debt is resolved. While options such as mortgages, tax documents, and property sales might indeed involve liens, they represent more specific applications. For example, a mortgage is a type of lien specifically related to real estate financing, and tax documents can establish a lien for unpaid taxes, but both of these are subsets of the broader category of all written instruments that can create a lien. Therefore, the term "lien" is applicable in diverse legal contexts surrounding property and is not limited to just a single scenario.