Basics

• A lien is a method of attaching a creditor claim to certain property. There are private party liens and tax liens which come from government entities for failure to pay property taxes. Private liens are typically granted to someone performing work on property such as a mechanic or a contractor.
  
  

Property Liens

• Other liens attach to personal property such as a painting, car, or even a financial settlement. In the case of liens that attach to personal property, the property or a portion of the property is held by the person claiming payment. For example, with an artisan's lien or mechanic's lien the mechanic can hold onto the restored Studebaker until you pay for his work.
  
  

Real Estate Liens

• Real estate liens are some of the most common liens. Because the claim attaches to a property, the debt is not dependent upon your physical location, so in this sense a lien remains valid from one state to another. However, the lien itself never moves to other states. For liens that attach to your real estate, the lien is recorded and become known when a title search occurs. If you were to try and sell the property, the lien would be noted and in effect whether you are located in the same state as the property or not.
  
  

Tax Liens

• When property taxes are not paid, the government entity affected can put a tax lien on the property. Tax liens must be paid before any sale can be recorded. Sometimes these liens are sold to investors who are paid when the property is sold.
  
  

Enforcement

• Property liens are enforced by maintaining possession of the property, not by summons or court orders. While you are free and clear to move anywhere at any time regardless of any lien, the lien holder will continue to keep your property.
  
  Real estate liens are enforced by being attached to the recorded title of the property. It is virtually impossible to get any financing, including a mortgage on a property without a clear title. This means you will have to pay off the lien prior to completing the transaction. In some states, a lien holder can theoretically force foreclosure on the property, however this is rare unless the lien is very large.