OMVIC Practice Test

Is it possible for more than one party to hold a lien on the same vehicle?

1. No

2. Only if it is a government lien

3. Only under special circumstances

4. Yes

The correct answer is: Yes

It is possible for more than one party to hold a lien on the same vehicle. This can occur if the vehicle owner has taken out multiple loans using the vehicle as collateral, or if there is a joint ownership of the vehicle and each owner has a lien attached to their portion. Options A, B, and C are incorrect because they all restrict the possibility of multiple liens on a vehicle. Option A is incorrect because it states that it is not possible, option B is incorrect because it limits it to government liens, and option C is incorrect because it implies that it is possible under very specific circumstances. It is important to note that having multiple liens on a vehicle can complicate matters if the owner falls behind on their payments or if the vehicle needs to be sold.