What is Lien?
A lien is a legal claim against a property for an unpaid debt, which can prevent a sale until it is resolved. Liens include mortgages, unpaid property taxes, contractor (mechanic’s) liens, and court judgments. Most liens must be cleared or paid through escrow before clear title can transfer.
Example: A contractor who wasn’t paid records a mechanic’s lien on the home; it must be satisfied through escrow before the sale can close.