What does lien mean?
A lien is a legal claim that someone, usually a creditor, has over property belonging to another person. It commonly acts as security for an unpaid debt, such as unpaid taxes, construction charges, or mortgage-related obligations. While the lien exists, the property may be restricted from being sold or transferred without satisfying the claim or obtaining authorization. Liens are particularly important in business and real-estate transactions because they can affect a buyer's ability to take clear title to a property. The word comes from French and ultimately Latin, and it is used in several familiar combinations, such as a tax lien, a mechanic's lien, and the discharge of a lien. Although often discussed alongside other security interests, a lien is more commonly understood in ordinary usage as a claim attached to particular property.
nounA legal right or claim that a person has over another's property, often as security for the payment of a debt. A lien may prevent the property from being transferred or sold until the claim is satisfied.
- A legal right or claim that a creditor has over another's property, generally as security for the payment of a debt.
- The property or interest in property subject to such a legal claim.
"The contractor placed a lien on the property until the outstanding renovation costs were paid."
"The bank recorded a lien against the house while the mortgage was being repaid."
"After the tax was paid, the government released the lien on the business."
The plural is used when referring to multiple property claims or legal interests.
"The title report disclosed several liens against the property."
A lien is a legal claim that says, in effect, “this property is tied up until the debt is settled.”
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does lien come from?
The English word comes through French lien, a noun meaning a bond, connection, or legal claim. French lien derives from Latin lienis, a form of līēnum meaning a bond and related to ligāre, “to bind.” The same Latin root underlies English words such as liable, liability, ligature, and ligament, reflecting the shared sense of being tied or bound.
How lien is actually used
The term is chiefly used in legal and financial contexts. The precise effect and priority of a lien depend on the relevant jurisdiction and the type of claim.
Easily confused with lien
A lien is a legal claim against property, whereas a loan is money or another asset lent to a borrower.
A lien is a legal interest in property, while a lion is a large carnivorous cat.