Lien: A legal claim or charge on a property by a creditor, to secure the payment of a debt or
obligation. Before a property can be sold, any liens (such as an outstanding mortgage or unpaid
service charges) typically must be cleared. A mortgage itself creates a lien on the property.
Example: The seller had an existing mortgage lien on the house, so during the sale, part of the
proceeds went directly to the bank to discharge that loan and release the lien for a clear title
transfer
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