Contractual Lien

Contractual Lien

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There are many kinds of liens (tax liens, mechanic’s liens, judgment liens and statutory liens, for example), and indeed most of them are nonconsensual. But, a contractual lien is a legal claim against property as a result of a voluntary contract, such as a mortgage. The person holding the lien has a legal right to the other person’s property if he or she fails to pay what’s owed.