Liens

Liens are legal claims or encumbrances on property that secure payment of a debt or the performance of an obligation. A lien gives the holder a right to pursue the property or its proceeds if the obligation is not satisfied, generally without transferring ownership. Liens can be created by contract (consensual liens) such as mortgages, vehicle liens, or mechanic's liens, or by statute or court order (involuntary liens) such as tax liens, judgment liens, or government assessments.

To enforce a lien, the holder usually records it with the appropriate government office and may need to provide notice. If the debt remains unpaid, the lienholder may foreclose on the property or obtain a court judgment to compel payment. Priority among liens is typically determined by the order of recording or by special rules; tax liens and other government claims often take precedence over private liens. A lien is discharged when the debt is paid, disputed successfully, or legally released.

Liens can affect property title and marketability. They last for a limited time under applicable statutes and may be extinguished if not renewed, or continue until release depending on jurisdiction. In most cases, a purchaser or lender must account for existing liens at closing and may require their removal or subordination before transfer.

Common types include tax liens, mortgage liens, mechanic's liens, and judgment liens. A lien is distinct from other remedies such as garnishment or attachment, which target a debtor's assets rather than the property itself.