What is a perfected lien?

A perfected lien is one that has been officially recorded, giving it legal validity and priority against the property in question. This recording process is crucial because it serves as public notice of the lien, allowing other potential creditors and buyers to be aware of the encumbrance on the property. Once a lien is perfected, it can be enforced in court and typically has greater legal standing in any disputes over property ownership or in scenarios where collections are necessary.

The recording process usually involves filing specific paperwork with the appropriate government office, which then updates public records to reflect the lien's existence. This makes option B the correct choice, highlighting the importance of proper documentation and public notice in the realm of property liens and encumbrances.

In contrast, a lien that is legally unenforceable, has been waived, or cannot be recorded does not provide the same level of legal protection or assurance to the lien holder. Such scenarios would not establish the formal and enforceable status that a perfected lien embodies.