What is a characteristic of a "valid lien"?

A valid lien is characterized as an enforceable legal claim ensuring debt payment related to property. This means that a lien legally attaches to a property until the associated debt is satisfied, giving the lien holder a secured interest in the property. This legal framework allows the lien holder to potentially compel the sale of the property or take possession if the debt remains unpaid, thereby ensuring that they have recourse to retrieve their owed funds through the property's value.

In contrast, informal claims, non-binding verbal agreements, and mere promises to pay do not have the legal permanence or enforceability required to qualify as a lien. They lack the formal legal recognition and protection afforded to valid liens, which require a proper filing or adherence to statutory requirements in order to be executed effectively. Thus, a valid lien is crucial in real estate transactions and for lenders, as it provides security and a formal avenue for debt recovery.