Legal Definitions - legal lien

A legal lien is a type of lien that allows a creditor to keep possession of a property as security for a debt owed to them. The creditor cannot sell the property for money, but they can hold onto it until the debt is paid off.

• A mechanic who fixes a car and is not paid can keep the car until the owner pays the bill.
• A landlord who is owed rent can keep the tenant's belongings until the rent is paid.

These examples illustrate how a legal lien works. In both cases, the creditor has a legal right to keep possession of the property until the debt is paid. This gives the debtor an incentive to pay off the debt so they can regain possession of their property.