Lien, << leen, >> is a legal claim that one person has on the property of another as security for debt. The main types of liens are common-law liens and statutory liens. Common-law liens developed from judges’ decisions in similar cases. Statutory liens are defined by laws passed by legislatures. A mechanic’s lien is an example of a statutory lien. This lien gives building contractors assurance that they will be paid for their work and material.
Common-law liens may be either specific or general. A specific lien gives the holder the right to retain the property that is the basis for the debt that is owed. For example, a storage company owner may obtain a specific lien to hold goods stored by the company until the storage is paid for. A general lien gives the holder the right to property other than that which is the basis of the debt due.
