Definition
A legal claim against property that secures a debt. Some are voluntary, like a mortgage on a house or a loan on a car; others arrive without consent, like tax liens, judgment liens, and contractor (mechanic's) liens. A lien generally must be paid off before the property can be sold with clear title.
Why it matters
Liens are why ownership can be conditional: the lienholder has rights to your property until the debt clears. Surprise liens surface at the worst moment, during a sale or refinance, and unpaid ones can escalate to foreclosure or seizure.
Example
A homeowner sells for $400,000. The title search finds the $250,000 mortgage, a $9,000 contractor's lien from an unpaid remodel, and a $3,000 tax lien. All three are paid from the proceeds at closing and the seller nets what remains; the sale could not have closed with the liens outstanding.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.