In our day to day life when we have everything going well, we hardly think that somebody has a lien registered on our property. However, we are never worried about lien since it helps to purchase things like Home, Vehicle and other things. Nonetheless, there are situations when lien on the property can create some problems for us, which is why knowledge about lien is essential. Read on to find out important things about the lien.

What is A Lien?

A lien is a legal claim given to another party (the creditor) on a property for which you (owner) took a loan from him. In this, a creditor has the right to reclaim the property or bring legal action to satisfy his debt or obligations.

These liens are part of public records so that potential creditors have a chance to check whether there is any debt on the property before giving a loan for that property.

Here’s an example to make it simple for you- When someone buys a car, they are required to pay a certain amount for it. Many people can pay this particular amount, but some people do not have enough funds and they may borrow some amount from another party (Individual, Bank etc.). These other parties are called creditors, the amount they lend is known as (debt) and a party who borrows the amount are called debtors.

You have promised to repay this debt to a creditor, but they don't have any security if you don't pay the debt. This is why they file certain documents with the Government and become lienholder on debtor property (car). This whole process makes creditor's debt secured and now he is in a better position to take his debt back.

Benefits of lien to creditors

Liens create a claim on the debtor’s property. They have the right to take debtor's property and sell it, in case their debt is not paid.

As they are part of public records, a debtor will not be able to again take a debt on the property which has a lien on it.

How to check if there is a lien on the vehicle/property you are planning to buy?

Before you buy any vehicle/property, you should check if there is any lien against that property, this can be done online by going to a website that provides services of a lien checking. Speedy search helps you check lien on a vehicle by VIN search is ON. They charge you a nominal amount to provide information which can be done through ON VIN check. As the name of the company suggests, you get speedy results when you check by VIN search is ON. The results of ON VIN check is emailed to you within 45 minutes.

Olivier Thomas is the author of this article. To know more about ON Vin Check. Please visit our website: speedysearch.ca