A property lien is a legal claim on real estate property that grants another party some right to it. Liens essentially tell others that the property is being used as collateral in a loan or financial obligation.
Property Liens Defined
Specifically, a property lien is a notice on a piece of property that grants someone—such as a lender or creditor—a legal claim to that property if outstanding debts or obligations aren’t paid. For example, a bank lending money to a home buyer in the form of a mortgage has a lien on the property being purchased.