Glossary → Debt & Finance
Debt & Finance

Lien

A legal claim on property as security for a debt.

A lien gives a creditor a claim against your property until a debt is paid. It can attach to a home, a car, or other assets, and it generally must be cleared before you can sell the property free and clear.

In practice

“A mechanic’s lien was recorded against the property for unpaid work.”

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Voluntary versus involuntary liens

A mortgage or car loan is a voluntary lien you agreed to. Judgment liens, tax liens, and mechanic’s liens are involuntary — imposed by law after a debt or court judgment. Involuntary liens can surface at sale or refinance, so knowing what is attached to your property matters before either.

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What it looks like in a real document

“This lien must be satisfied at closing before title can transfer.”

Liens follow the property, not just the person — an unresolved lien can block a sale, which is exactly when many people first discover one.