Which trust remedy provides security for a claim by creating an equitable lien on property?

Which trust remedy provides security for a claim by creating an equitable lien on property?

• A. Constructive trust
• B. Purchase money resulting trust
• C. Equitable lien
• D. Resulting trust

Answer: (C)

An equitable lien is a security mechanism created by equity that attaches to a specific property to secure the payment of a debt or claim. When someone has paid funds or contributed value toward property and hasn’t been fully compensated, a court can impose this lien on the property. The lien gives the claimant a charge on the property’s value and can be satisfied from the property’s proceeds if it’s sold, even if there’s no formal mortgage or security agreement. This makes the lien a true security right tied to the property itself. This differs from a constructive trust, which is used to prevent unjust enrichment by transferring title to the rightful owner; and from purchase money resulting or resulting trusts, which concern the intended ownership and contributions of funds rather than creating a security interest in the property. So the remedy that provides security for a claim by creating an equitable lien on property is the equitable lien.

An equitable lien is a security mechanism created by equity that attaches to a specific property to secure the payment of a debt or claim. When someone has paid funds or contributed value toward property and hasn’t been fully compensated, a court can impose this lien on the property. The lien gives the claimant a charge on the property’s value and can be satisfied from the property’s proceeds if it’s sold, even if there’s no formal mortgage or security agreement. This makes the lien a true security right tied to the property itself.

This differs from a constructive trust, which is used to prevent unjust enrichment by transferring title to the rightful owner; and from purchase money resulting or resulting trusts, which concern the intended ownership and contributions of funds rather than creating a security interest in the property. So the remedy that provides security for a claim by creating an equitable lien on property is the equitable lien.