What does lien mean?

Get a quick, free translation! LIEN definition: 1. an official order that allows someone to keep the property of a person who owes them money until…. Learn more.

What is an example of a lien?

A lien is often granted when an individual takes out a loan from a bank to purchase an asset. For example, if an individual purchases a vehicle, the seller would be paid using the borrowed funds from the bank. In turn, the bank would be granted a lien on the vehicle.

What are the different types of liens?

There are many types of liens that are used to secure assets. A lien is a claim or legal right against assets that are usually used as collateral to satisfy a debt. The creditor may be able to seize the asset that is the subject of the lien. Bank, real estate, and tax are three types of liens.