Lien

A lien is a legal claim against a property that backs a debt or obligation. Unpaid mortgages, contractor bills (mechanic’s liens), overdue property taxes, and court judgments can all create one, and most have to be cleared before the property can be sold or refinanced.

Liens are recorded publicly and surface during the title search. They can slow or complicate a deal, which is where title insurance earns its place, protecting buyers and lenders against undisclosed or fraudulent liens that appear after closing.