Lien

A Lien, commonly used in law, is a right given to a “lienholder” to recapture real estate or private property owned by another person, if in default. The Lien will be removed once the amount of the lien and any other interest or fees related are paid off entirely. Liens are more common with Real Estate. Usually, the lienee(borrower)cannot sell the property, until “clear title” has been granted to him/her. Clear title is given once the lien is paid off. A lien is a cheap and effective way of mitigating risk, when selling a property that is not paid off. There are different types of liens with different rules, such as, Property Tax Lien, Builder’s Lien, Condo Fee Lien etc.

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