How do liens affect property ownership?

Liens play a significant role in property ownership by establishing a legal claim against a property to secure the payment of a debt. When a lien is placed on a property, it gives creditors the right to take specific actions if the borrower defaults on their obligations. This can include foreclosing on the property, which means that if the associated debts are not paid, the creditor can potentially take possession of the property to satisfy the outstanding debt. Therefore, option B clearly highlights how liens function as mechanisms to protect creditors and enforce financial agreements, making them a critical aspect of property rights and ownership.

In contrast, the other options do not accurately describe the nature of liens. For instance, liens do not inherently increase property value, nor do they remove previous owners’ claims entirely; they coexist with the existing ownership interests but prioritize the creditor's rights over the property. Similarly, liens are very much relevant to property ownership, as they must be addressed in any transaction involving the property to ensure clear title and transferability.