205k views
2 votes
Which of the following is a lien?

A) A novation
B) A mortgage
C) An easement
D) An investment

User Keugyeol
by
8.3k points

1 Answer

7 votes

Final answer:

A mortgage is a lien, which represents a legal right or interest held by a lender on a borrower's property until a debt is paid off.

Step-by-step explanation:

The question asks which of the following is a lien. The correct answer is B) A mortgage. A lien is a legal right or interest that a lender has in another's property, until the debt that the lien secures is paid off. When someone takes out a mortgage, the lending institution has a lien on the property which means the lender can foreclose on the property if the borrower fails to make payments.

The other options listed do not represent liens: A novation is the act of substituting a valid existing contract with a replacement contract, where all parties agree to the change. An easement is a right to cross or otherwise use someone else's land for a specified purpose. An investment is an asset or item acquired with the goal of generating income or appreciation.

User Seanomlor
by
8.2k points