Massachusetts Real Estate License Practice Test 2025 – The All-in-One Guide to Master Your Exam!

The primary function of a Municipal Lien Certificate is to show all outstanding taxes and assessments against a property. This certificate is typically issued by a municipality and provides specific details about any liens or financial obligations related to the property, including unpaid property taxes, water and sewer charges, special assessments, and other municipal charges.

This information is crucial for prospective buyers or lenders, as it ensures that they are fully informed about any debts tied to the property before making a transaction. By understanding these obligations, buyers can avoid unexpected financial responsibilities after a purchase.

The other choices are not the primary function of the Municipal Lien Certificate; for example, while documenting the title of a property or providing warranties on property conditions are important aspects of real estate transactions, they fall under different processes and documentation. Transferring ownership is also a separate matter that involves deeds and title transfers, rather than liens or municipal obligations.