Equitable Lien

An equitable lien is a legal right or claim that a person has over someone else's property to secure a debt or obligation. It arises when one party provides something of value to another, seeking assurance that they’ll be repaid. Unlike a traditional lien, which is formal and usually recorded, an equitable lien is based on fairness and trust. For example, if a contractor improves a homeowner's property but isn't paid, they might have an equitable lien, allowing them to claim a right to the property to ensure they receive compensation.