Florida Broker Practice Exam

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What type of lien is created when a purchase-money mortgage is recorded by the seller?

Vendor's lien
Construction lien
Estate tax lien
Mortgage lien

The correct answer is: Vendor's lien

A vendor’s lien is specifically associated with the seller holding a claim against the property until the purchase price is fully paid. This type of lien arises when a seller provides financing to the buyer for the property, often through a purchase-money mortgage. Recording this mortgage serves as a security interest for the seller, ensuring that they have a right to recoup their investment by having a legal claim over the property if the buyer defaults on payment. The other types of liens highlight different legal and financial situations: a construction lien involves claims by contractors or subcontractors for unpaid work, an estate tax lien is related to debts owed for estate taxes upon a deceased person's assets, and a mortgage lien is typically filed by a lending institution when they provide a loan for the purchase of real property. Therefore, while a purchase-money mortgage creates a legal right, specifically for the seller, it establishes a vendor’s lien, distinguishing it from the other lien types.