What is a lien?

A lien is defined as a legal claim against a property as security for a debt. This means that it gives the creditor the right to take possession of the property if the borrower fails to fulfill their obligations under the terms of the debt. Liens can arise from various situations, such as unpaid property taxes, mortgage debts, or other financial obligations. They effectively encumber the property, meaning that the property cannot be sold or transferred without first addressing the debt associated with the lien.

Understanding this concept is vital in real estate transactions, as the presence of a lien can affect property ownership and transfer rights. For instance, if someone purchases a property with an existing lien, they may become responsible for paying off that debt, even if they were unaware of it at the time of purchase.

The other options do not describe a lien accurately. A type of property ownership pertains to legal titles and interests, while a government tax on real estate relates to taxation and does not involve a claim for debt. An agreement between a buyer and seller pertains to the terms of a sale but does not encompass the idea of securing a debt with a property. Thus, the definition of a lien is clearly identified by the accurate answer provided.