Real Estate Term
Lien
A legal claim against a property, often used as security for a debt.
What is Lien?
A lien is a legal claim registered against a property that secures a debt, meaning it usually must be paid off before the property can be sold or refinanced. Liens can come from unpaid contractors, taxes, or court judgments. A title search reveals any liens so they can be cleared before closing, protecting the new owner from inheriting the debt.
Frequently asked questions
Related terms
Title SearchAn examination of public records to confirm a property's legal ownership and identify any claims.ForeclosureThe legal process by which a lender takes possession of a property due to the borrower's failure to make payments.DeedA legal document that transfers ownership of real property from one party to another.ClosingThe final step in a real estate transaction where ownership transfers from seller to buyer.
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