In a real estate sale, if the seller defaults after the buyer has given a deposit, what lien can the buyer place to recover the deposit?

• A. Mortgage
• B. Vendor's Lien
• C. Mechanic's Lien
• D. Lis Pendens

Answer: (B)

The situation hinges on securing money that the buyer has already paid when the seller fails to complete the sale. A vendor's lien is a claim placed on the property itself that secures the payment of the purchase price to the seller. If the seller breaches, the buyer can invoke this lien to recover the deposit, because the deposit is part of the money owed for the property, and the lien creates a financial encumbrance on the property that the buyer can rely on to recoup funds or leverage a settlement.

Other options don’t align with this remedy. A mortgage is something a lender places to secure a loan, not a buyer’s recourse to retrieve a deposit. A mechanic’s lien applies to work or improvements performed on the property, not to a failed real estate deal. Lis pendens is merely a notice that a lawsuit affecting the property is pending; it does not itself secure recovery of the deposit. Therefore, the appropriate remedy to recover the deposit when the seller defaults is a vendor’s lien.