California Real Estate Practice Exam

Which of the following groups represent ALL specific liens?

1. Corporate franchise tax liens, federal estate tax liens, judgment liens

2. Federal income tax liens, attachments, state inheritance tax liens

3. Lien for descendants' debts, vendor's lien

4. Mechanics' liens, tax liens, assessment liens

The correct answer is: Corporate franchise tax liens, federal estate tax liens, judgment liens

The correct answer includes corporate franchise tax liens, federal estate tax liens, and judgment liens, all of which are considered specific liens. Specific liens are those that are directly tied to a particular property or piece of collateral, giving the lienholder a claim to that specific asset in case of default. Corporate franchise tax liens are imposed by the state and can attach to the corporate entity's property for unpaid taxes, representing a direct claim against that entity's assets. Federal estate tax liens arise when an estate owes taxes, and these liens encumber the property of the decedent until those obligations are fulfilled. Judgment liens are established when a court renders a judgment against a debtor, allowing the creditor to place a lien on the debtor's specific property to satisfy the judgment, thereby creating a direct claim. While other answer choices mention various forms of liens, they do not collectively represent all specific liens as effectively as the selected option does. Other types of liens included in other choices may be general or not specifically linked to a property, hence making the chosen answer the most comprehensive in capturing all categories of specific liens.