Lien
A legal claim against someone's property to secure payment of a debt.
A lien is a legal claim placed on someone’s property – such as a house, car, or bank account – as security for a debt. If the debt is not paid, the lienholder may be able to force the sale of the property to collect what is owed.
Common types of liens in Minnesota include:
- Mortgage lien: Your bank holds a lien on your home until the mortgage is paid off.
- Mechanic’s lien: A contractor or subcontractor who was not paid for construction work can place a lien on the property they improved.
- Tax lien: The state or federal government can place a lien on your property for unpaid taxes.
- Judgment lien: If someone wins a lawsuit against you, they can place a lien on your property to collect the judgment.
Example: A roofing company replaces your roof but you do not pay the bill. The company may file a mechanic’s lien against your house, which means you cannot sell the house without first paying the roofing company.
When you might see this term
When buying or selling property, dealing with unpaid taxes, or when a contractor has not been paid for work.