Remedial Law
Updated 14th May 2025
Lien
L

A lien is a legal claim or charge on property, whether real or personal, serving as collateral or security for the payment of a debt or obligation. A lien follows the property until it is discharged.

A lien can be created by operation of law or legal process. For instance, a valid levy on attachment or execution places property under court authority, creates a lien in favor of the judgment creditor over the judgment debtor's interest in the property at the time of the levy, and is subject to existing liens and encumbrances. An attaching creditor acquires a specific lien on the attached property, which continues until the debt is paid, the property is sold under execution, the judgment is satisfied, or the attachment is discharged. Attachment of property already in custodia legis merely operates as a lien. In the registry, a registered attachment lien subjects and subordinates the right of a subsequent purchaser to the lien.

A lien may also be constituted on the real property of an estate after extrajudicial settlement and distribution, liable to creditors, heirs, or other persons for two years. This lien will not be cancelled before the lapse of two years even with a bond offer.

A preliminary injunction pending proceedings does not operate to discharge or extinguish any lien the adverse party may have acquired upon the petitioner's property.

Examples

  • A legal claim or charge placed on property (real or personal) to secure payment of a debt or obligation.
  • A lien arises from a valid levy on attachment or execution, affecting the judgment debtor's interest in the property at the time of the levy.
  • An attaching creditor acquires a specific lien on the attached property. Attachment is a provisional remedy available in certain principal actions, aiming to secure property as security for a judgment. It is also considered a quasi in rem action where the property interest is subjected to an obligation or lien.
  • Attachment can operate as a lien even on property already under court authority (custodia legis).
  • A registered attachment lien subordinates the rights of a subsequent purchaser to the lien.
  • A lien is constituted on the real property of an estate for two years following extrajudicial settlement and distribution, making it liable to creditors, heirs, or other persons.
  • A preliminary injunction pending proceedings does not discharge or extinguish a lien previously acquired by the adverse party upon the petitioner's property.
  • Foreclosure of mortgage is an action quasi in rem where the purpose is to subject the property interest to the burdening obligation or lien. It is also listed as a special civil action. Proceedings for foreclosure are examples of actions involving real property interest.