Lien

In one sentence

A legal claim against property to secure payment of a debt or obligation.

Plain English

A lien gives someone the right to hold or sell another person's property if a debt isn't paid. For instance, a mechanic who fixes your car might place a lien on it, meaning you can't sell or transfer the car until you pay the repair bill. The person holding the lien doesn't own the property, but they have a legal interest in it that must be satisfied before the owner can freely sell it.

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Example

A contractor completes home renovations but the homeowner refuses to pay. The contractor files a mechanic's lien against the house, preventing the owner from selling it until the debt is settled.

Used in a sentence

“The bank placed a lien on the property to secure the mortgage loan.”

Related terms

chattel

Personal property that is movable, as opposed to real estate or land.

color of law

The appearance or claim of legal authority, often used when someone abuses power while pretending to act lawfully.

Liquidated Damages

A fixed amount both parties agree in advance the breaching party must pay.

Conditions Subsequent

An event that, if it happens, ends a party's obligation or allows them to cancel the contract.

Penalty

A sum of money a contract requires as punishment for breach, often unrelated to actual damages.

Homestead Exemption

A legal protection that shields a primary residence from creditors' claims up to a certain value.

Tenant Rights

Legal protections and entitlements that renters have regarding their leased property and living conditions.

Security Deposit

Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.