Lien
A legal right or claim against a property or asset used as security for a debt.
What is Lien?
A lien is a legal right or interest that a creditor holds in a debtor's property, typically as security for a loan or other financial obligation. Liens are created by agreement (such as a mortgage or car loan), by law (such as a tax lien or mechanic's lien), or by court order (such as a judgment lien). The lien gives the lienholder the legal right to seize and sell the encumbered property to satisfy the debt if the borrower defaults. Liens are recorded in public records, making them visible to prospective buyers and lenders. Multiple liens can exist on the same property, with priority determined by the order of recording—senior liens are paid first in a foreclosure. A property cannot be sold with a clean title until all liens are satisfied or released.
Example
When a homeowner takes out a mortgage, the lender records a lien against the property in the county recorder's office. If the homeowner later fails to pay a contractor, the contractor may file a mechanic's lien against the property. Both liens appear in a title search and must be cleared before the homeowner can sell or refinance.
Source: Investopedia — Lien