What are "property liens"?

Property liens are indeed legal claims against a property that must be satisfied before the property can be sold. When a lien is placed on a property, it signifies that the property is collateral for a debt or obligation. This means the owner cannot sell the property without first addressing the lien, as the lienholder has a legal right to the property until the debt is paid. Liens can arise from various situations, including unpaid taxes, mortgage obligations, or even judgments from lawsuits.

Understanding liens is crucial in real estate, as they can impact a buyer’s ability to take legal ownership of the property. In contrast, the other options relate to different aspects of real estate transactions. Contracts guaranteeing the sale of a property refer to agreements and not claims against the property itself. An insurance policy for homeowners protects against damages but does not constitute a claim or obligation like a lien does. Bank loans secured by the property are a form of financing and are related to how the property is leveraged rather than being a claim against it.