Lien

A lien is a legal claim against property that may arise because money is owed to a person, institution, or authority. The lien can provide the claimant with certain rights until the underlying obligation is settled. For example, a financial institution may have a claim over property connected with financing. Government dues or other legally enforceable obligations can also potentially result in claims depending on applicable law. A buyer should investigate whether a property is subject to any lien before completing a purchase. Failure to identify an existing claim can create complications after the transaction.

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