Define "lien" in the context of property ownership.

In the context of property ownership, a lien refers to a legal claim against a property that serves as security for a debt or obligation. When a lien is placed on a property, it essentially gives the creditor the right to take possession or have a claim to the property if the debt is not repaid. This means that the property is encumbered by this legal claim, and the owner may not be able to sell or refinance the property without addressing the lien.

Liens can arise in various situations, such as when a homeowner takes out a mortgage, where the lender has a lien on the property until the mortgage is fully paid. They can also result from unpaid property taxes, mechanics' liens from contractors who have not been paid for work done on the property, or judgments against the property owner.

Understanding what a lien is and how it functions within property ownership is crucial, especially for individuals looking to buy or sell properties, as any existing liens must typically be resolved before a transfer of ownership can occur.