Definition Lien On Property

How to use lien in a sentence.

Definition lien on property. Property liens are one of the most common conditions that can slow down a real estate transaction. Since loans with collateral are less risky for the lender they can lead to lower interest rates for the borrower. A mortgage is a common lien. Lien definition is a charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law.

So what exactly is a lien on a house. A lien is typically a public record. Property liens can be used by creditors in a variety of situations. A lien is an encumbrance on one person s property to secure a debt the property owner owes to another person.

A lien is a notice attached to your property telling the world that a creditor claims you owe it some money. A lien is the right to retain the lawful possession of another person s piece of property until the owner fulfills a legal duty to the person holding the property such as the payment of lawful charges for work done on the property. A property lien is a legal claim on assets which allows the holder to obtain access to property if debts are not paid. The individual or entity that has the claim such as a lender is called a lienholder.

In general it is a legal notice that s put on file as the. A right given to another by the owner of property to secure a debt or one created by law in favor of certain creditors. A property lien protects lenders in the event of non payment. When purchasing a used car for example it s important to check for liens against the vehicle.