Define 'property lien.'

A property lien is fundamentally a legal claim that allows a lender or creditor to hold an interest in a property until a debt owed by the property owner is satisfied. This means that if the owner fails to pay back a loan or meets certain obligations, the lienholder has the right to take legal action to reclaim the owed amount, potentially leading to foreclosure on the property in the case of secured debts.

In real estate transactions, a lien serves as a security interest, providing assurance to the creditor that they have a claim on the property. They can enforce the lien by seeking a court judgment or by initiating foreclosure proceedings if the debt remains unpaid.

Understanding the definition of a property lien is crucial for those involved in real estate, as it affects ownership rights, the ability to sell or refinance the property, and overall property value. Concepts such as governmental restrictions, rental agreements, or tax assessments do not encompass the essence of a lien, which is specifically related to the enforcement of debt obligations through a secured interest in property.