Finance
Lien
Standard Definition
A legal claim against a property that secures payment of a debt (e.g., mortgages, tax liens, mechanics' liens).
Detailed Examination Analysis
A lien is a financial encumbrance. It gives the lienholder the right to force the sale of the property if the debt is not paid. Liens can be Voluntary (mortgages) or Involuntary (tax liens, mechanics' liens) and General (applying to all the owner's property) or Specific (applying only to a particular parcel).
Real-World Examination Scenario
"A contractor remodels a kitchen but is not paid. They file a mechanic's lien against the home, preventing the owner from selling the property without satisfying the debt."
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