A lien on real estate is found in a?

A lien on real estate is found in a?

• A. Deed restriction.
• B. Recorded mortgage.
• C. Quitclaim deed.
• D. Deed in Trust.

Answer: (B)

A lien on real estate is legally established through a recorded mortgage. When a mortgage is recorded, it becomes a public document that formally indicates that a lender has a financial claim against the property until the debt is repaid. This recorded mortgage serves as a mechanism for the lender to enforce their rights and can lead to foreclosure if the borrower defaults on their loan obligations. In contrast, a deed restriction refers to limitations placed on the use of the property but does not create a financial claim. A quitclaim deed is a way to transfer ownership but does not imply any lien; it simply transfers whatever interest the grantor has in the property without guaranteeing that interest. A deed in trust involves the legal transfer of property to a trustee for the benefit of a lender, but it is not a lien itself; rather, it manages the property's title until a debt is resolved. Thus, a recorded mortgage is the definitive option that establishes a lien on real estate.

A lien on real estate is legally established through a recorded mortgage. When a mortgage is recorded, it becomes a public document that formally indicates that a lender has a financial claim against the property until the debt is repaid. This recorded mortgage serves as a mechanism for the lender to enforce their rights and can lead to foreclosure if the borrower defaults on their loan obligations.

In contrast, a deed restriction refers to limitations placed on the use of the property but does not create a financial claim. A quitclaim deed is a way to transfer ownership but does not imply any lien; it simply transfers whatever interest the grantor has in the property without guaranteeing that interest. A deed in trust involves the legal transfer of property to a trustee for the benefit of a lender, but it is not a lien itself; rather, it manages the property's title until a debt is resolved. Thus, a recorded mortgage is the definitive option that establishes a lien on real estate.