The Aspects of Liens, Including Legal Features and Priority

Question 1

What are liens?

Answer 1

Liens are a creditor’s claim against personal or real property as security for a debt of the property owner

Question 2

What happens to a lien if the owner defaults?

Answer 2

The lien gives the creditor the right to force the sale of the property to satisfy the debt

Question 3

What distinguishes a lien from other types of encumbrances?

Answer 3

Liens are attached to the property b/c of a debt

Question 4

List the legal features of liens

Answer 4

• A lien does not convert ownership, with one exception (mortgage)
• Attaches to the property
• A property may be subject to multiple liens
• A lien terminates on payment of the debt and recording of documents