A lien is an example of an encumbrance which is any limitation to a person's title to a property. It lessens a properties value and limits it's use but doesn't prevent the property from being sold. A lien is an encumbrance that affects title and requires money. It is defined as being a claim against a property in order to secure payment of a debt. Liens can be voluntary or involuntary, specific to one property or general to multiple properties and equitable or statutory. A mortgage is considered voluntary and equitable because someone voluntarily agrees that the lender has a lien against their property in order to satisfy a debt out of fairness. Involuntary and statutory, means that the lien is placed against the property on the basis of the law.
Types of Liens
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