Lien – What it Means and the Different Types; Real Estate Terms Explained:

Lien – What it Means and the Different Types; Real Estate Terms Explained:

A lien is a legal claim or right that someone has over a property until a debt is paid. If you borrow money or owe someone something, and you use land or property as a guarantee, they can place a lien on that property.

That means you can’t sell or transfer the property freely until the debt is cleared and they remove the lien. A common example is if you take a loan from a bank and uses your plot in Mukono as security, the bank puts a lien on that land title. You’ll see that reflected at the Lands Office. You can’t sell that plot until you pay the bank. So make sure that:

• If you're buying land or a house, you must check for liens to make sure the seller has full rights to sell.
• If you're using your property for a loan, understand that you're temporarily giving the lender control over that property.

<strong><strong>Basic types of liens</strong></strong>

<strong><strong>1. Judgment Lien; </strong></strong>This type of lien is imposed by a court after a lawsuit. If someone wins a case against you and you don’t pay, the court can place a lien on your property until the debt is settled.

<strong><strong>2. Mechanic’s Lien: </strong></strong>A mechanic’s lien is used when service providers like builders or contractors aren’t paid for their work. They can file a lien on your property, which can lead to a court ordering the sale of the property to recover the unpaid amount.

<strong><strong>3. Tax Lien: </strong></strong>A tax lien is placed by the government when someone fails to pay their taxes. It gives the tax authority a legal right to the person’s property, which can be sold through a public auction to recover the debt. This can affect the person’s ability to sell property or get credit.

📌 Key Takeaways:

• Always do a title search before buying land or property.
• Clear any liens before trying to sell or transfer property.
• Liens are serious—they can stop a deal, delay a project, or even cause a court case.

When dealing with real estate in Uganda, especially if financing or joint ownership is involved, ask your lawyer or surveyor to check for liens at the Ministry of Lands. It could save you from buying a property that’s “tied up.”