California Real Estate Practice Exam

Which of the following would be considered a "general lien"?

1. Federal tax lien

2. Judgment lien

3. Tax lien

4. All of the above

The correct answer is: Federal tax lien

The correct answer is that all of the choices listed—federal tax lien, judgment lien, and tax lien—are considered general liens. A general lien is a claim against all of an individual's property, rather than a specific property. A federal tax lien, for instance, can attach to all of an individual's real and personal property due to unpaid federal taxes. This means that the IRS can pursue not only the property in question but any assets the individual might own. Similarly, a judgment lien arises when a court rules in favor of a creditor. This type of lien allows the creditor to claim a portion of the debtor's property to satisfy a debt and applies to all of the debtor's assets, not just a single item. A tax lien, particularly one related to property taxes owed to a municipality, can also classify as a general lien because it can extend to all property owned by the taxpayer. Thus, since all the mentioned types of liens share the characteristic of being general liens, the most comprehensive answer correctly includes all of them.