Liens
A lien is a legal claim or right against someone's property, typically used as security for a debt or obligation. When a lien is placed on a property, the owner cannot sell or refinance it without addressing the lien first. This ensures that creditors can recover their money if the owner defaults on a loan. Liens can arise from various situations, such as unpaid taxes, mortgages, or judgments from lawsuits. Understanding liens is essential, as they can affect property ownership and financial transactions.
Additional Insights
-
A lien is a legal claim against someone's property that secures the payment of a debt or obligation. It gives the creditor the right to take possession of the property if the debt isn't paid. For example, if you borrow money to buy a car, the lender may place a lien on the vehicle. This means they have a claim to it until you fully repay the loan. Liens can be voluntary (agreed upon) or involuntary (imposed by law, like tax liens). They are important in protecting creditors while impacting the property owner’s ability to sell or refinance.