How to Publicize Interest in Property by Filing a Lien
What does it mean to file a lien against someone's property?
In this situation Ian is most likely to file a lien against Hu's property to publicize his interest in it. But what exactly is a lien and how does it work?
Definition of a Lien
A lien is a legal claim against an asset that is used as collateral to satisfy a debt. When someone files a lien against a property, it means they have a legal right to the asset until the debt is repaid.
Understanding the Concept of Lien
When Ian files a lien against Hu's property, he is essentially establishing a legal claim on the property to secure the repayment of the debt Hu owes him. This means that Hu cannot sell or transfer ownership of the property without first settling the debt with Ian.
Lien filing is a common practice in situations where a debt is secured by a specific asset, such as real estate. By filing a lien, Ian ensures that his interest in the property is publicly known and protected.