What is a lien?

A lien is fundamentally defined as a legal claim against a property to secure the repayment of a debt or obligation. This means that if a property owner fails to pay what they owe, the creditor can put a claim on the property, which may affect the owner's ability to sell or refinance it until the debt is settled. Liens can arise from various sources, including unpaid taxes, mortgages, or other types of loans, and are an important consideration in real estate transactions. Understanding the nature of a lien helps individuals recognize how debts can impact ownership and the rights of creditors to take action against a property when necessary.

In contrast, the other options describe different concepts in real estate. Insurance protects against specific risks, a mortgage payment plan refers to the structure by which loan payments are made, and a government tax pertains to the financial obligations imposed by the government rather than a claim on property for debt.