Lien
National Real Estate Exam glossary · Financing
Definition
A charge or claim against property that secures the payment of a debt or obligation. Liens may be voluntary (a mortgage) or involuntary (a tax or judgment lien), and general (against all of a debtor's property) or specific (against one parcel, as a mechanic's lien). A lien is an encumbrance on title.
Lien in plain English
A lien is a legal 'hold' someone places on your property because you owe them money — it doesn't take the property, but it clings to it until the debt is paid. Think of it like a claim-check stapled to your house: if you try to sell, that debt usually has to be settled first from the money you get. Some liens you choose (a mortgage, where you borrow to buy the home), and some get slapped on you (an unpaid tax bill, or a court judgment). A lien can target one specific property (like the contractor's claim for a deck they never got paid for) or all of your property at once.
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