Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Lien

A lien is a legal claim against real or personal property that secures payment of a debt or performance of an obligation, giving the lienholder a right to satisfy the claim through foreclosure, repossession, or sale proceeds before the owner receives remaining equity.

Exam context

Match lien to security interest on property. Specific lien attaches to one asset; general lien may attach broadly. Tax liens often have super-priority. Easement is a use right, not a debt claim.

Types and priority

Mortgages and deed-of-trust liens are voluntary security interests recorded against title. Property tax liens, judgment liens, and mechanic's liens often arise by operation of law and may jump ahead of older recorded mortgages depending on state statute. First-in-time recording rules apply among equal-priority voluntary liens in many jurisdictions. Title searches reveal open liens before closing.

Agent implications

Sellers must disclose known liens affecting marketability. Buyers expect clear title except agreed encumbrances like existing mortgage payoff at closing. HOA assessment liens and IRS federal tax liens can block transfer until cured or subordinated. Agents coordinate payoff statements and title insurance commitments so escrow can order releases.

Examples

  • Mortgage lien payoff

    A seller owes $280,000 on a first mortgage. Closing proceeds pay the lender, who releases the lien of record so the buyer receives title subject only to the new purchase money mortgage.

  • Mechanic's lien

    A contractor files a mechanic's lien for unpaid roof work. The owner cannot sell free and clear until paying the claim or bonding around it per state notice requirements.

Keep studying

Practice lien questionsEnroll in pre-licensing

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