Final answer:
A special assessment lien is a lien on real estate made to secure payment for a specific municipal improvement project.
Step-by-step explanation:
The correct answer is C) Special assessment lien. A special assessment lien is a type of lien on real estate that is made to secure payment for a specific municipal improvement project. This type of lien is created by the local government to cover the costs of a particular improvement, such as the construction of a road or the installation of sewer lines.
For example, if a city decides to build a new park in a neighborhood, they may impose a special assessment on the properties in that area to fund the project. The special assessment lien would then be placed on each property as a means of ensuring that the property owners pay their fair share of the project.
It is important to note that a special assessment lien is different from other types of liens. While a mechanic's lien is used to secure payment for construction work done on a property, a tax lien is imposed by the government to collect unpaid taxes, and a judgment lien is a result of a court decision, a special assessment lien is specifically tied to a municipal improvement project.