Ace the New York Real Estate Salesperson Exam 2025 – Unlock Your Shiny New Career!

A vendor's lien is a legal claim that a seller has on a property until the buyer fulfills their obligation to pay the purchase price. This means that if a buyer agrees to purchase a property but has not yet made the full payment, the seller retains a lien on that property. This lien serves as security for the seller, allowing them to claim or recover the property if the buyer fails to pay as agreed.

This concept is crucial in real estate transactions, as it protects the seller's financial interests. The vendor’s lien does not transfer ownership; rather, it ensures that the seller has a way to enforce their rights regarding the payment for the property.

In contrast, the other options do not fit the definition of a vendor's lien. A financial incentive for buyers involves different forms of discounts or benefits rather than legal claims. An agreement between two parties to share property typically refers to partnerships or co-ownership arrangements, which do not incorporate the concept of a seller retaining rights to a property. A type of mortgage loan pertains to financing and borrowing, rather than the seller's legal claim on a property until payment is made.