North Dakota Real Estate Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

What is a lien?

A tool used to manage property transactions

A legal claim against a property to secure payment of a debt

A lien is a legal claim against a property that grants the lienholder the right to keep possession of the property until a debt owed by the property owner is satisfied. This means that if the property owner fails to fulfill their obligations, such as repaying a loan or fulfilling a contract, the lien allows the creditor to potentially take possession of the property or force a sale to recover the owed amount. Liens can come from various sources, including mortgages, tax obligations, or unpaid bills, and they serve as a form of security for creditors.

Understanding this concept is vital in real estate, as liens can greatly affect property ownership and marketability. A property encumbered by a lien may be less attractive to potential buyers or lenders because the debt must be settled before clear title can be granted.

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A type of real estate insurance

A formal request for property inspection

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