Finance glossary
Lien
Definition
A legal claim on an asset to secure a debt.
A lien gives a creditor the legal right to a borrower asset until a debt is repaid, and to seize or force its sale on default. Mortgages and tax liens are common examples. A lien must usually be cleared before the asset can be sold with clean title.
In a sentence
The contractor placed a lien on the house until the unpaid bill was settled.
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