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Lien

Lien is a legal claim against a property that must be paid when the property is sold for money owing. For example, a supplier or a subcontractor who has provided labour or materials but has not been paid may file a lien.

A claimant must properly file a lien. It has a limited life, prescribed by statutes that vary from province to province. If the lien holder takes action within the prescribed time, the homeowner may be obliged to pay the amount claimed by the lien holder.

Alternatively, the lien holder may force a sale of the property to pay off the debt.

Click for more mortgage glossary terms relating to remortgaging.

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