Real Estate License Exam Prep — Module 4 Quiz
Encumbrances & Liens

Q1. Which lien generally has the highest priority at foreclosure?
A) Mortgage lien
B) Tax lien
C) Judgment lien
D) Mechanic's lien
ANSWER: B

Q2. A roofer files a claim after the homeowner refuses payment for completed work. This is a:
A) Judgment lien.
B) Mechanic's lien.
C) Voluntary lien.
D) Tax lien.
ANSWER: B

Q3. CC&Rs that limit land use:
A) Bind only the original owners.
B) Run with the land and bind future owners.
C) Are enforceable only against renters.
D) Expire after one year.
ANSWER: B

Q4. A recorded notice that a property is in pending litigation is:
A) Lis pendens.
B) Estoppel.
C) Attachment.
D) A homestead exemption.
ANSWER: A

Q5. Which statement about a judgment lien is TRUE?
A) It is a voluntary lien created by the owner.
B) It attaches to the debtor's property in the county where recorded.
C) It always beats a recorded mortgage.
D) It expires at the debtor's death.
ANSWER: B