Lien
A legal claim against property (real estate, vehicles, business assets) as security for a debt — typically preventing sale or transfer until the debt is paid.
A lien is a secured interest in property that attaches as collateral for a debt or obligation. In the legal context, judgment liens arise automatically when a court judgment is properly filed with the county recorder where the debtor owns real property. The lien attaches to the property and must be satisfied (paid) before clear title can be transferred — meaning the debtor cannot sell or refinance the property without paying the judgment creditor.
Mechanic's liens (also called contractor's or materialman's liens) allow contractors, subcontractors, and suppliers to place a lien on property where they performed work or supplied materials but were not paid. These are governed by strict notice and filing deadlines — typically 60–120 days after last work performed — that vary by state. Missing the deadline forfeits lien rights entirely.
Other common liens include: mortgage liens (created by lenders at loan origination), tax liens (filed by IRS or state taxing authorities for unpaid taxes), and HOA liens (for unpaid assessments). A title search reveals all liens on a property, which is why title insurance and thorough searches are essential in real estate transactions.
Real-World Example
The general contractor filed a mechanic's lien within 90 days of completing the kitchen remodel when the homeowner refused to pay the final $18,000 invoice; the lien blocked the homeowner's refinancing until the dispute was resolved.