Glossary

Lien

A legal claim or encumbrance against real property that secures payment of a debt or obligation, giving the lienholder the right to foreclose or force a sale if the underlying obligation is not satisfied.

Liens can be voluntary (a mortgage or deed of trust the owner grants to a lender) or involuntary (a mechanic's lien filed by an unpaid contractor, a judgment lien from a lawsuit, or a tax lien for unpaid property or income taxes). Lien priority — generally determined by recording date under a first-in-time, first-in-right rule, though certain liens such as property tax liens enjoy statutory super-priority regardless of recording date — determines the order in which lienholders are paid from foreclosure or sale proceeds. Title searches exist primarily to uncover liens before closing, since an undischarged prior lien can survive a sale and attach to the new owner's interest if not properly cleared, released, or bonded off at or before closing.