What is the difference between a lien and a security interest?

In South Carolina, a lien and a security interest are two important terms related to real estate law. A lien is a legal claim against a piece of property that is usually used to secure the payment of a debt. A lien is typically enforced by filing a document with the county recorder, and it remains on the property until the debt is paid. A security interest, on the other hand, is an interest in real property that provides a creditor with a legal claim against it. A security interest may be created in a variety of ways, such as through a promissory note or a mortgage. Unlike a lien, a security interest is created when a borrower pledges property to a creditor as collateral for a loan. The security interest is then registered with the state and will remain until the loan is paid in full. If the borrower does not make payments, the creditor can enforce the security interest and take possession of the property. This is different from a lien, which does not give the creditor the right to take possession of the property. In conclusion, a lien is used to secure the payment of a debt while a security interest is an interest in a piece of property which provides the creditor with a legal claim against it. A lien does not give the creditor the right to take possession of the property, whereas a security interest can be enforced in order to take possession of the property in the event of a default.

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