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Real Estate Word of the Day: Lien

Lien: A charge or claim that one person (lienor) has on the property of another (lienee) as security for a debt or obligation. A lien always arises from a debt and can be created by agreement of the parties (e.g., a mortgage) or by operation of law (e.g., a tax lien). A lien may be general or specific. A general lien applies to all the lienee’s real and personal property. A specific lien affects only a particular property, such as a mortgaged house. Liens can also be statutory or equitable, voluntary or involuntary.

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