A lien may be created by recording:

• A. A trust deed
• B. A mortgage
• C. A deed of trust
• D. A lien release

Answer: (B)

A lien is created when a borrower pledges property as security for a loan and that security interest is filed in public records. Recording a mortgage publicly documents the lender’s claim against the property, giving constructive notice to the world and establishing a lien that attaches to the property. This lien remains in place until the debt is paid, the loan is foreclosed, or the lien is released. While a deed of trust can also secure a loan and create a lien in some contexts, the act of recording a mortgage is the classic mechanism that produces the lien itself in this scenario. A lien release, by contrast, removes a lien rather than creates one.