Lien Law

Lien Law in real estate refers to the legal right a creditor has to claim a property as security for a debt. If a property owner fails to pay what they owe, such as for services or loans, the creditor can place a lien on the property. This means that if the owner sells the property, the debt must be paid from the sale proceeds before the owner receives any money. Liens can affect ownership transfer and may have to be resolved before closing a sale, ensuring that debts are satisfied.