What is defined as a "lien"?

The definition of a "lien" refers to a legal right or interest that a creditor has in a property, granted until the debt related to that property is paid off. This means that the creditor can legally claim the property or have a claim against it as security for the obligation. Liens are typically used in various financial transactions, such as mortgages or loans, to ensure that the lender can recover the debt if the borrower defaults on their payments.

In this context, a lien protects the creditor's interest in the collateral (the property), ensuring that they have a legal means to seek compensation if the borrower fails to fulfill their financial obligations. This definition is crucial for understanding real estate transactions, as it establishes the priority of claims and the obligations that property owners have regarding outstanding debts.

The other options suggest different concepts—property tax revolves around government levies on property for local services, a legal contract for purchasing property relates to the sale agreement, and an appraisal of property value pertains to an assessment of a property's worth. However, none of these accurately describe what a lien represents in real estate law.