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Lien

Lien

A legal claim on property that allows the holder to obtain access if debts remain unpaid. This essentially gives the creditor the right to seize the property to recover what is owed to them. There are different types of liens, but the most common ones are mechanic’s liens and tax liens. Mechanic's liens allow contractors, subcontractors, and suppliers to place a lien on the property they have worked on if they do not receive payment for their services. Tax liens are placed on property by government agencies when a property owner fails to pay property taxes. The lien remains in place until the debt is paid or the property is sold. It's important to note that liens can impact the ability to sell or refinance the property, so it's important to resolve any liens as soon as possible. Liens can be a powerful tool to ensure that debts are paid, but they also need to be used responsibly to avoid any negative consequences.
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