What describes a lien placed on a property by a lender when a mortgage is granted?

The term "property lien" accurately describes a lien placed on a property by a lender when a mortgage is granted. In this context, a property lien refers to the lender's legal claim against the property to secure repayment of the mortgage loan. This means that if the borrower fails to make the mortgage payments, the lender has the right to foreclose on the property, which allows them to recover the debt by selling the property.

When a mortgage is executed, the borrower conveys a lien to the lender as collateral for the loan. This lien remains in effect until the borrower fully repays the mortgage. The property lien ensures that the lender has a priority claim over other creditors regarding the value of the property, making it a critical aspect of real estate transactions.

In contrast, a tax lien is a claim against a property for unpaid taxes; a mechanic's lien is a claim against a property for unpaid work performed or materials supplied during construction; and a judgment lien is a claim resulting from a court judgment against a property owner. Each of these types of liens serves different purposes and arises under different circumstances, but they do not apply to the situation of a lender's claim when a mortgage is granted.