Which of the following is NOT a method to resolve a lien?

Prepare for the Encumbrances Test with multiple choice questions and flashcards. Each question includes hints and explanations. Ace your exam with confidence!

The chosen answer identifies transferring the lien as a method that does not resolve it. In the context of liens, resolution typically involves eliminating or satisfying the debt that the lien secures. Payment of the debt directly resolves the lien since it removes the obligation tied to the property. Legal negotiation can also lead to resolution by finding a mutually acceptable way to satisfy the debt, such as negotiating a lower payment or a payment plan. Contesting through legal procedures is another method that can potentially resolve a lien, as it may lead to the lien being deemed invalid or unenforceable through court decisions.

Transferring the lien does not eliminate the liability; it merely assigns the existing obligation to another party without resolving the underlying debt. The new holder of the lien still has the right to make claims against the property until the debt is resolved. Thus, this option does not contribute to resolving the lien.

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