Lien

A lien is a legal right or interest that a lender has in the borrower’s property, granted until the debt obligation is satisfied. Liens can be voluntary or involuntary and are often used as a form of security for loans.

Examples of liens include:

• Mortgage lien: A bank has a lien on a house until the mortgage is paid off.
• Tax lien: The government places a lien on a property for unpaid taxes.
• Mechanic’s lien: A contractor can file a lien on a property for unpaid work.

Notable cases:

• United States v. A parcel of land (1994): The court upheld a federal tax lien against a property owner.
• In re: Keck (2012): The court clarified the enforceability of a mechanic’s lien when proper procedures are not followed.