Property Ownership

In New Mexico, a 'lien' on real property is best classified as:

AA physical encroachment
BA financial encumbrance that serves as security for a debt and can be enforced through foreclosure✓ Correct
CAn easement for public use
DA deed restriction

Explanation

A lien is a financial claim against property as security for a debt. If the debt is not paid, the lienholder may initiate foreclosure proceedings to satisfy the debt from the property's value.

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