Lien
From Encyclopædia
{leen} A lien is a claim on real or personal
property used as security for a debt or other legal obligation. The possessor of a lien who properly records it in the appropriate public office is known as a secured creditor. Such a person has priority over general (or unsecured) creditors and is entitled to satisfy his or her claim regarding an unpaid debt from the sale of the secured
property.Liens are characterized as either general or particular. A general lien secures the creditor for all claims against the debtor. A specific lien secures a creditor only for claims arising from a particular transaction affecting a specific piece of
property. Liens can be created by agreement, as with a
mortgage, or by operation of law. An example of the latter is the mechanic's lien, which gives a builder or contractor a claim on the
property--both building and land--as security for payment for labor and materials. Other liens include the judgment lien (whereby a court can order a debtor to sell his or her
property to pay the creditor) and the landlord's lien (whereby a landlord can secure payment of rent by a lien on a tenant's movable
property).
