Which of the following represents a legal claim on property used as security for a debt?

Which of the following represents a legal claim on property used as security for a debt?

• A. Easement
• B. Lien
• C. Fixtures
• D. Trade Fixture

Answer: (B)

A lien represents a legal claim on property that is utilized as security for a debt. This legal instrument allows a creditor to have a right to keep possession of property belonging to a debtor until the debt owed by the debtor is discharged. When a lien is placed on a property, it can affect the owner's ability to sell or refinance the property until the underlying debt is resolved. This makes liens a crucial aspect of real estate transactions, where they serve to protect the interests of lenders and creditors. In contrast, an easement grants one party the right to use another's property for a specific purpose, such as accessing a roadway, but it does not provide a claim on the property in relation to debt. Fixtures refer to items that are permanently attached to a property and thus become part of it, and trade fixtures are specific types of fixtures installed by a tenant for business purposes which can be removed at lease end. However, neither fixtures nor trade fixtures denotes a legal claim regarding debt. Thus, the best representation of a legal claim on property is a lien.

A lien represents a legal claim on property that is utilized as security for a debt. This legal instrument allows a creditor to have a right to keep possession of property belonging to a debtor until the debt owed by the debtor is discharged. When a lien is placed on a property, it can affect the owner's ability to sell or refinance the property until the underlying debt is resolved. This makes liens a crucial aspect of real estate transactions, where they serve to protect the interests of lenders and creditors.

In contrast, an easement grants one party the right to use another's property for a specific purpose, such as accessing a roadway, but it does not provide a claim on the property in relation to debt. Fixtures refer to items that are permanently attached to a property and thus become part of it, and trade fixtures are specific types of fixtures installed by a tenant for business purposes which can be removed at lease end. However, neither fixtures nor trade fixtures denotes a legal claim regarding debt. Thus, the best representation of a legal claim on property is a lien.