Property Lien


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.

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  3. Lien Sale

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  4. Construction Lien

    A claim made against a property by a contractor or other professional ...
  5. Mechanic's Lien

    A guarantee of payment to builders, contracters and construction ...
  6. Prior Lien

    A lien that is recorded prior to any other claims. Prior liens ...
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