What is a lien?

A lien is a legal claim on a property that serves to secure the repayment of a debt or an obligation. When a lien is placed on a property, it gives the creditor a right to possess or take legal action against the property if the debt is not paid. This can include various types of debts, such as mortgages, tax obligations, or other financial obligations where property serves as collateral.

Understanding the nature of a lien is essential in real estate, as it can affect ownership rights and the ability to sell or transfer the property. For instance, if a property owner fails to pay their mortgage, the lender may have the right to foreclose on the property due to the lien placed against it. This highlights the importance of liens in the realm of property transactions and financial security.

The other options presented describe different concepts unrelated to the legal claim aspect of liens. A rental agreement refers to a contract for leasing property, property appraisal involves assessing the value of a property, and a document proving property ownership pertains to title deeds rather than claims for debts. Each of these concepts plays an important role in real estate but does not define what a lien is.