Tax Lien
A claim imposed by the government on property for unpaid taxes, giving the government priority over other creditors.
Encyclopedia entry: Tax Lien
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tax lien
A tax lien is a lien acquired by court order that gives the government a security interest in property because of a failure to pay assessed taxes . If the property is mortgaged a tax lien will take precedence over the mortgage. This is why a mortgage lender may choose to protect the value of its own lien by paying the tax debt and seeking reimbursement from the property owner.
[Last reviewed in June of 2024 by the Wex Definitions Team
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.