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

A lien and a security interest are two distinct legal concepts related to real estate law in Virginia. A lien is a legal claim against a property by a creditor. Typically, it gives the creditor the right to collect payment from the property or through a sale of the property. A lien may be established through a court judgment and can be used to secure payment of a debt. A security interest is a form of ownership on which a creditor can rely to secure payment. A security interest is established when a debtor transfers an ownership interest in a property to a creditor. This allows the creditor to secure payment by having a legal right of ownership of the property. This right of ownership is superior to the claims of any other creditors and can be used to collect payment. The major distinction between a lien and a security interest is that a lien is a claim on a property, while a security interest is a right of ownership of the property. Liens can be created without transferring an ownership interest, while a security interest requires the debtor to transfer an ownership interest in the property to the creditor.

Related FAQs

What is a ground lease?
What is the role of a real estate agent in a real estate transaction?
What is the difference between a lease and a rental agreement?
What is the role of a real estate broker in a real estate transaction?
What is a deed in lieu of foreclosure?
What is the difference between a lien and a mortgage?
What types of mortgages are available?
What is an adverse possession claim?
How do I evict a tenant?
What are the disclosure requirements when I rent out property?

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

Related FAQs

Related Blog Posts