What is the function of a lien in real estate?

The function of a lien in real estate is to provide a financial claim against property. A lien is a legal right or interest that a lender or creditor has in the borrower's property, granted until the debt obligation is satisfied. When a lien is placed on a property, it serves as a form of security for the lender, indicating that there is an outstanding debt that must be repaid. This financial claim needs to be cleared before the property can be sold or transferred to another owner, ensuring that the creditor's interests are safeguarded.

In contrast, increasing property value relates more to property enhancements or market conditions rather than liens. Unrestricted property use would suggest that there are no financial claims or obligations against the property, which contradicts the concept of a lien. Similarly, a lien does not guarantee rental income; it simply establishes a creditor's claim ensuring that the debt is prioritized in matters of property ownership and transfers.