A lien is a claim or legal right against a property that secures the payment of a debt or other obligation. A lien arises when a creditor agrees to lend money to a debtor and the debtor agrees to give the creditor a security interest in their property. The debtor gives the creditor a lien on their property as collateral for the loan. If the debtor defaults on the loan, the creditor can seize the property and sell it to repay the debt.
Which type of lien is a specific lien? A specific lien is a type of lien that is attached to a particular piece of property. This means that if the property is sold, the lien must be paid off before the new owner can take possession. Specific liens are often used to secure a loan, and they can be placed on both personal and real property. What is lien based? A lien is a claim or legal right to possess and use property that is pledged as security for the payment of a debt or other obligation. A lien may be placed on real estate (a mortgage) or personal property (a car loan). The debtor is said to have a "lien" on the property. The creditor has a "lien" against the debtor. What is the synonym of lien? A lien is a legal claim or right on another person's property. The property may be real estate, personal property, or some other asset. A lien gives the holder the right to seize and sell the property to satisfy a debt or other obligation.
What are the two kinds of lien?
There are two types of lien: voluntary and involuntary.
Voluntary liens are typically placed on property by the owner as collateral for a loan. The most common type of voluntary lien is a mortgage, which is used to secure a loan used to purchase a home.
Involuntary liens are placed on property by creditors. The most common type of involuntary lien is a tax lien, which is placed on property by the government when the owner owes back taxes.
What is right of lien in business law?
A right of lien is a legal claim or right to possess property that is held as collateral for a debt or other obligation. A lien may be granted by agreement of the parties (such as when a borrower gives a lender a mortgage as security for a loan) or by operation of law (such as when a mechanic's lien is granted to a contractor who has repaired or improved property). Once a lien is granted, the property is considered "encumbered" by the debt and may be sold to satisfy the debt if the debtor fails to make payments.