How is a lien defined in the context of real estate?

In the context of real estate, a lien is defined as a legal right or interest that a lender or creditor has in the borrower's property, granted until the obligation of the debt owed is satisfied. This means that if the borrower defaults on the debt, the lender may have the right to seize the property to satisfy the debt. Liens are often secured by the property and are important because they protect the lender's investment. Examples of common liens include mortgage liens, tax liens, and mechanic's liens, which arise when contractors are unpaid for their work on a property.

The other options do not accurately reflect the definition of a lien in real estate. A lease agreement refers to a contract for rental, a voluntary transfer of property refers to the act of someone willingly giving property to another, and a method of property appraisal pertains to determining the value of a property, all of which are separate concepts in real estate.