When is a title considered to have a lien?

A title is considered to have a lien when there are claims against the property. A lien is a legal right or interest that a lender has in the property, granted until the obligation, typically a loan or mortgage, is satisfied. This means that if the property owner fails to meet their financial obligations, the lien allows the lender to take possession of the property. Hence, the presence of claims, like a mortgage or unpaid property taxes, indicates that the property cannot be freely sold or transferred without addressing these financial responsibilities.

The other circumstances mentioned, such as the property being owned by multiple parties, the owner declaring bankruptcy, or the transfer of the title, do not in themselves create a lien. While these situations can impact the property's title and ownership status, they do not necessarily signify that there are legal claims against it in the context of a lien. Thus, the correct understanding revolves around claims being the distinguishing factor for a lien against a title.