Which of the following best defines a lien in real estate?

• A. A legal claim against a property for a debt
• B. A record of property ownership
• C. A contract for selling a property
• D. A type of property value assessment

Answer: (A)

A lien in real estate is best defined as a legal claim against a property for a debt. This means that if a property owner fails to meet their financial obligations, such as paying property taxes or mortgage payments, a lien can be placed on their property by a creditor. This legal claim can encumber the property, meaning the owner typically cannot sell or refinance the property without first addressing the lien. Liens ensure that creditors have a legal right to seek payment, potentially through foreclosure processes, if the debt remains unpaid.

The other options describe different aspects of real estate. A record of property ownership refers to the title, which documents who legally owns the property. A contract for selling a property is a legal agreement between a buyer and seller, detailing the terms of the sale. A type of property value assessment involves determining the market value or taxable value of a property, which is not related to the concept of a lien. Understanding these distinctions reinforces the definition of a lien as a specific legal claim connected to debt.