Lien

Lien, in property law, claim or charge upon property securing the payment of some debt or the satisfaction of some obligation or duty. Although the term is of French derivation, the lien as a legal principle was a recognized property right in early Roman law.

The English common law early recognized the creditor’s possessory lien, a right of a creditor to retain possession of a debtor’s goods until the satisfaction of the debt, generally the payment of the purchase price. In time, the common law developed two kinds of possessory liens: specific liens and general liens. The specific lien extended only to the indebtedness of the property owner for the value of services rendered to or in connection with his property—that is, the price for the repair or improvement of the property. The general lien extends not only to the value of services rendered in regard to the specific property but also to all indebtedness on general account by the property owner to the creditor. Whether a creditor had a general or specific possessory lien came to be determined by custom and trade usage. This classification of creditor’s possessory liens was largely superseded in the eventual refinement of common-law contract remedies.

In addition to the common-law possessory liens, there are also equitable and statutory liens. Courts of equity will in certain situations recognize a creditor’s interest in a debtor’s property even though the property remains in the debtor’s possession. An example of a statutory lien in general use in the United States is the mechanic’s lien, most commonly of statutory creation, that confers upon builders, contractors, and others furnishing labour and materials for land improvement an interest in the land so improved as security for payment for their services.

Mortgages, pledges, and pawns are a generic species of the lien to the extent that they create creditor interests in property, although the law governing these differs substantially from that which applies to the lien.