DEFINITION of 'Property Lien'

A property lien is a legal claim on a tract of real estate granting the holder a specified amount of money upon the sale of the property. Such liens are often used to ensure the payment of a debt, with the property acting as collateral against the amount owed. A mortgage is the best example of a property lien.

BREAKING DOWN 'Property Lien'

While very beneficial to debt collectors, property liens can be a headache for inattentive homebuyers. That's why, in addition to mortgage insurance, it can sometimes be helpful for potential property owners to purchase some type of title insurance as well.

RELATED TERMS
  1. Lien

    The legal right of a creditor to sell the collateral property ...
  2. Tax Lien Foreclosure

    The sale of a property resulting from the property owner's failure ...
  3. Possessory Lien

    Property that is in the hands of, or is possessed by, the individual ...
  4. Tax Lien Certificate

    A certificate of claim against property that has a lien placed ...
  5. Voluntary Lien

    A claim that one person has over the property of another as security ...
  6. Prior Lien

    A lien that is recorded prior to any other claims. Prior liens ...
Related Articles
  1. Financial Advisor

    Top Alternatives Assets for Capital Preservation

    At best, alternative investments can help preserve capital by avoiding correlation with stocks and by beating inflation. Here's a look at some options.
  2. Taxes

    IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.
  3. Investing

    Foreclose on High Housing Prices

    Foreclosed homes may be financially appealing, but there are many obstacles to consider before buying.
  4. Insurance

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  5. Investing

    Equity Stripping Leaves Creditors Empty-Handed

    Add additional debt to your real estate assets to keep the creditors at bay.
  6. Investing

    Your Property Tax Assessment: What Does It Mean?

    The amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
  7. Investing

    The Guide to Investing in REO Properties

    Real estate owned properties present a unique investment opportunity but there are some specific challenges to be aware of before diving in.
  8. Investing

    What You Should Know About Real Estate Valuation

    Anyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
  9. Taxes

    Sell Your Rental Property For a Profit

    Being a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.
RELATED FAQS
  1. How do I avoid a tax lien on my property?

    Find out the best way to prevent the government from placing a lien on your property, including the consequences of having ... Read Answer >>
  2. What types of liens are seen as good and which are bad for my credit?

    Understand what a lien is and what types of liens are most common for individuals, and learn which types of liens are good ... Read Answer >>
  3. What is the difference between a possessory and a non-possessory lien?

    Gain a basic understanding of a possessory lien and a non-possessory lien, the key differences between the two structures ... Read Answer >>
Trading Center