A lien in real estate is a legal claim or charge against a property that serves as security for a debt. It gives the lienholder the right to seize and sell the property if the debt is not paid.
Common types of liens include:
Mortgage lien: A lien created by a lender to secure a mortgage loan.
Tax lien: A lien placed on a property by a government agency to secure unpaid taxes.
Mechanic's lien: A lien placed on a property by a contractor or tradesperson who has performed work on the property and has not been paid.
Judgment lien: A lien placed on a property by a court to satisfy a judgment in favor of a creditor.
Liens can affect the value and marketability of a property. If a property has multiple liens, it can make it difficult to sell or refinance. It's important for potential buyers to be aware of any liens on a property before making an offer.
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