Which lien would a buyer most likely use to recover the buyer's deposit if the seller defaults after a down payment?

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

Answer: (A)

A vendor’s lien is the kind of security the seller holds on the property to secure the unpaid portion of the purchase price. When a buyer puts down a deposit and the seller later defaults, this lien becomes a direct way to protect or recoup that money because it ties the seller’s interest in the land to the price that’s still owed. In effect, the lien gives the seller (or the buyer asserting the seller’s breach through the property) a concrete claim against the property to satisfy the balance, which makes it the most natural remedy in a sale contract context for recovering funds tied to the transaction.

The other options don’t fit as neatly. A mortgage is a loan instrument used to finance the buyer’s purchase and is not the mechanism a buyer would rely on to recover a deposit if the seller defaults. A mechanic’s lien covers work or materials provided for the property and isn’t about safeguarding a down payment in a sale. A judgment is a court order resulting from litigation; while it can lead to collection, it’s not the lien tied to the performance of the sale itself and is typically a slower, more indirect route.