What does a lien typically refer to in property law?

A lien typically refers to a recorded claim against real or personal property, which serves as a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. In property law, a lien acts as a security interest, meaning that if the property owner fails to fulfill their obligations—for instance, failing to make a loan payment—the lien holder has the right to take legal action to seize the property as a means of recovering the owed amount.

This concept is fundamental in understanding property rights, as liens can affect the ability to sell or encumber the property. For example, a mortgage is a common type of lien, where the lender has a legal claim to the property until the mortgage is paid off. This creates an obligation for property owners to manage their debts carefully to avoid potential foreclosure or loss of property due to outstanding liens.