What do liens represent in real estate?

Liens in real estate represent legal claims against a property. They are financial encumbrances that give the lienholder (usually a lender or service provider) a right to possess or sell the property to satisfy a debt or obligation in the event that the property owner does not fulfill their financial commitments, such as paying a mortgage or property taxes. This means that if a lien exists on a property, the owner cannot sell or transfer clear title to the property without addressing the lien, as it would impact the buyer's interest in the property.

Understanding the role of liens is crucial in real estate transactions, as they can affect the value and marketability of a property. In contrast, market assessments involve determining a property's market value, offers to purchase pertain to potential buyer interest, and contracts for maintenance services are agreements for upkeep, none of which directly represent a claim against the property.