Florida Broker Practice Exam

Which lien is typically related to construction work performed on a property?

1. Vendor's lien

2. Construction lien

3. Mortgage lien

4. Property tax lien

The correct answer is: Construction lien

The construction lien, also known as a mechanics lien, is specifically designed to provide security for those who have performed labor or supplied materials for construction work on a property. If a contractor, subcontractor, or supplier is not paid for their work or materials, they can file a construction lien to claim an interest in the property they helped improve. This type of lien ensures that these parties have a legal claim to the property and may lead to foreclosure if the debt remains unpaid. In contrast, a vendor's lien generally pertains to situations where a seller retains a lien on a property until the buyer pays the purchase price. A mortgage lien involves a loan secured by real property, where the lender has a claim on the property in case of default on the loan. A property tax lien arises when property taxes are not paid, giving local governments a claim against the property in order to recover owed taxes. Each of these liens serves a different purpose and reflects varying interests related to property, but the construction lien directly ties to construction practices and serves to protect those who enhance or maintain the property through their labor or materials.