Legal
Lien
A legal claim on a property that must be satisfied before the property can be sold with a clear title. A mortgage is the most common lien on a home. Other liens can come from unpaid taxes, contractor work, or court judgments. A title search during the home-buying process identifies any existing liens. All liens must be paid off or resolved before ownership can transfer to a new buyer.
Why It Matters
Lien has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about lien, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.