What is lien in real estate ?

Hey friend,

Just like you, I was not aware of types of liens real estate. To be honest, I didn’t know the meaning of the term ‘lien’ either. I asked friends of mine if they were aware of the term. Most of them shook their heads no. Lien is a claim which can be put on one’s asset or property as a form of security to ensure the repayment of loan money by the borrower. 

If the debts to the lender aren’t paid, they can legally claim an asset as a security. This is called a lien. Usually, lien especially property needs to be filed and verified by the appointed state agency. 

When an asset is put on a lien because of legal action like a lawsuit, it is referred to as a judgement lien.

When an asset is put on a lien because the property owner hasn’t paid the contractor., it is referred to as a mechanic’s lien.

When an asset is put on a lien because the real estate property owner hasn’t fulfilled the terms of a contract aka non-fulfilment, it is referred to as a real estate lien.

When an asset is put on a lien because the real estate property owner/ taxpayer hasn’t paid taxes to the authorities, it is referred to as a tax lien.

You should know how a lien works after knowing liens definition real estate. Claim on property in lien is granted by the court. The rules of which differ from one state court to another. A property lien is granted in case of immovable property like a house/ flat and car, boat, or equipment. 

I hope your doubt on the types of liens real estate has been resolved.

Read more :