A right to hold on to someone's property, or keep a charge on it, until a debt is paid. In property, a lender's charge on a mortgaged home is often loosely called a lien.
How it works and what to check
Banks mark a lien on deposits or securities pledged for a loan, and a lender holding title deeds for a home loan has a charge until the loan is repaid. On closure, the lender releases the charge and returns the documents.
When buying from a seller with a loan, make sure the lender's no-dues letter and the original documents come to you at registration.
Common questions
How do I remove a lien from a property?
Repay the loan, then get the lender's closure letter, the original documents and, where the charge was registered, a registered release.
Is a lien the same as a mortgage?
Not strictly, but in everyday use both mean a lender's claim on the property.