A contractor finishes work on a house and is not paid. The contractor files a claim against the property that must be settled before clear title can transfer. That claim is a lien. A lien is a legal right to have a debt satisfied out of the property’s value.

Mortgages are voluntary liens. Tax liens, judgment liens, and mechanic’s liens are involuntary. Liens are recorded in public records and appear on title reports. They generally must be paid or otherwise resolved at closing so the buyer receives clean title.

Priority among liens usually follows the order of recording, with property-tax liens often taking precedence. Owners can clear liens by paying the underlying debt or negotiating releases. Ignoring a lien can lead to foreclosure by the lienholder.

• Legal claim against property securing a debt
• Can be voluntary or involuntary
• Recorded and visible in title searches
• Must typically be cleared for a clean transfer