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Real estate glossaryNational exam concept

Lien

A lien is a nonpossessory legal claim or charge against property that secures payment of a debt or performance of an obligation.

Exam area: Property Ownership

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What does “lien” mean in real estate?

A lien is a nonpossessory legal claim or charge against property that secures payment of a debt or performance of an obligation. It can affect transfer and may be enforced according to law.

How is “lien” different from the closest wrong answer?

A lien secures an obligation but does not usually transfer possession. An easement grants a use right, and an encroachment is a physical intrusion.

What is the Georgia-specific rule?

Georgia uses security deeds for real estate loan security, but tax, judgment, mechanic's, and other liens can also affect title and priority.

Worked exam example

Scenario

A recorded judgment attaches as a claim against the debtor's real property and must be addressed before a clean transfer can occur.

What is the most common exam trap?

Trap correction

A lienholder is not automatically the property's owner or occupant.

Original exam check

Apply the definition

A title search shows a recorded $18,000 judgment against the seller, who still lives in the home. What does the judgment creditor hold?

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Recommended next complete lesson

Continue with Property Ownership complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.