Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Full Definition
A lien is a legal claim against real property that serves as security for a debt or obligation owed by the property owner. If the debt is not repaid, the lienholder may foreclose — forcing a sale of the property to satisfy the debt. Liens are classified as voluntary (the owner agreed to them, like a mortgage) or involuntary (imposed by law, like a tax lien or mechanic's lien). Liens are also general (affecting all of the debtor's property, like a judgment lien) or specific (affecting only a specific property, like a mortgage). Lien priority — determining which lienholder gets paid first in foreclosure — is generally based on the date and time of recording. Property tax liens have superpriority and are paid first regardless of recording date.
Real-World Example
A contractor who completes a $15,000 kitchen remodel and isn't paid can file a mechanic's lien against the property. The lien must be paid before the owner can sell the property with clear title.
How Lien Appears on the Real Estate Exam
Common question types, tested concepts, and what to watch out for
Know lien priority: property taxes are always first. Mechanic's liens often relate back to the date work started. Voluntary vs. involuntary; general vs. specific. A lis pendens is a notice that a lawsuit involving the property is pending — it is not itself a lien but clouds the title.
Related Terms
More Title & Ownership Terms
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