What is a lien?

A lien is a legal claim or right that a creditor has over a debtor's property, granted until the debt obligation is satisfied. In essence, it serves as a guarantee that a debt will be paid, providing the creditor with a legal interest in the property that can be enforced through various legal means, such as foreclosure. The presence of a lien ensures that creditors can recover amounts owed to them by having the right to take possession of the property under certain conditions if the debt remains unpaid. This is particularly significant in real estate transactions, where a lender may place a lien on a property to secure a mortgage loan.

The other options refer to concepts that are unrelated to the definition of a lien. For instance, a type of property tax involves government assessments on property value for tax purposes, while a contract obligation pertains to the duties and responsibilities outlined in a legal contract. A court order of protection is a legal directive aimed at protecting an individual from harassment or harm, which does not connect to property claims or creditor rights. Understanding the distinct nature of a lien in comparison to these other terms highlights its unique role in legal and financial contexts.