Which type of lien ensures compensation for sellers if a buyer backs out?

The vendees lien is specifically designed to protect the seller in a real estate transaction when the buyer fails to fulfill their obligations, such as backing out of the contract. When a buyer makes an earnest money deposit or pays part of the purchase price and then defaults, the vendees lien allows the seller to claim a lien on the property for the amount of the deposit or any other compensation owed. This mechanism is crucial because it provides the seller a legal avenue to seek compensation, ensuring that their interests are safeguarded.

In contrast, other types of liens mentioned do not serve this purpose. For instance, an attachment lien generally pertains to a court’s order holding a property as security for a claim, usually in a lawsuit, rather than to ensure compensation in a real estate transaction. An ad valorem tax pertains to property tax assessed based on property value and is not related to buyer-seller agreements. A mortgage lien, while it ties the property to the borrower’s obligation to repay the mortgage, does not address the issue of compensation for sellers if a buyer withdraws from the sale. Therefore, the vendees lien is the appropriate choice as it directly addresses scenarios where a buyer backs out of a purchase agreement.