What is a lien?

A lien is a legal claim or charge against a property that is placed to ensure the payment of a debt or obligation. This means that if the debt is not satisfied, the lien gives the creditor the right to take action to satisfy the debt, which may include foreclosing on the property. Liens can arise from various circumstances, such as unpaid taxes, mortgages, or contractor work that has not been compensated.

Understanding this concept is crucial in real estate transactions because liens affect the ownership and transferability of property. Buyers need to be aware of any existing liens on a property they are interested in, as these could result in financial complications or loss of ownership rights if not resolved.

The other options do not accurately describe a lien: an offer to purchase property is part of the negotiation process, a legal document granting ownership relates to deeds, and documents showing property boundaries refer to surveys. These concepts are important but serve different purposes in real estate.