Lien
A legal right or interest that a creditor has in another's property, granted as security for a debt or other obligation until satisfaction is made.
What Is a Lien?
A lien is a non-possessory security interest in property that allows the lienholder to compel sale of the property to satisfy an underlying debt. Liens may attach to real property, personal property, or specific assets. They can be created by agreement, by operation of law, or by judicial process. Until released, a lien clouds title and restricts the owner's ability to sell, refinance, or transfer the property.
Major Types of Liens
- **Mortgage liens**: voluntary liens securing real estate loans - **Mechanic's and materialman's liens**: statutory liens for construction work or materials - **Tax liens**: for unpaid federal, state, or local taxes - **Judgment liens**: arising from court judgments and recorded against the debtor's property - **Child support liens**: enforcing unpaid family support obligations - **HOA liens**: for unpaid homeowners association assessments - **Attorney charging liens**: securing legal fees against client recoveries
Priority and Release
Lien priority generally follows the rule of first in time, first in right, with important statutory exceptions. Property tax liens typically take priority over all other liens. Liens are released through payment, court order, statute of limitations, or formal release documents recorded with the county. A title search reveals existing liens, and a payoff statement quantifies the amount needed to clear each lien at closing. Falsely recording a lien can result in slander-of-title liability and statutory penalties.