A vendor's lien is described as?

A vendor's lien is described as?

• A. A tax lien created by the government
• B. A leasehold interest
• C. A lien created by the seller on the property to secure the balance due from the buyer
• D. A court injunction

Answer: (C)

A vendor's lien is a security interest created by the seller against the property to secure the buyer's obligation to pay the remaining purchase price. This often happens in seller-financed transactions, where the seller agrees to finance part of the price and keeps a lien on the property until the balance is paid. If the buyer defaults, the seller can enforce the lien—through foreclosure or other legal action—to recover the unpaid amount. This is distinct from a tax lien (imposed by the government), a leasehold interest (a right to occupy under a lease), or a court injunction (a court order).

A vendor's lien is a security interest created by the seller against the property to secure the buyer's obligation to pay the remaining purchase price. This often happens in seller-financed transactions, where the seller agrees to finance part of the price and keeps a lien on the property until the balance is paid. If the buyer defaults, the seller can enforce the lien—through foreclosure or other legal action—to recover the unpaid amount. This is distinct from a tax lien (imposed by the government), a leasehold interest (a right to occupy under a lease), or a court injunction (a court order).