Which of the following creates a lien when recorded?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

An abstract of judgment creates a lien when recorded because it serves as a formal declaration of a legal judgment against a debtor. When a creditor obtains a judgment from the court, it indicates that the debtor owes a specific amount. By recording the abstract of judgment in the appropriate public records, it establishes a lien against the debtor's real property, effectively giving the creditor a legal claim to the property until the debt is satisfied. This lien can affect the debtor's ability to refinance or sell the property, as it must be addressed before clear ownership can be transferred.

In contrast, a warranty deed and a quitclaim deed are both methods of transferring property ownership; they do not inherently create liens. A power of attorney allows someone to act on behalf of another but does not by itself create any lien. Therefore, the abstract of judgment is uniquely positioned as a document that, when recorded, imposes a financial obligation on the property, making it the correct answer to the question.

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