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Simple English definitions for legal terms
extinguishment of lien
Read a random definition: short-form bill of lading
A quick definition of extinguishment of lien:
Extinguishment of Lien: When a lien is no longer valid or enforceable by law, it is said to be extinguished. This means that the lien holder no longer has a legal claim to the property or asset that was previously secured by the lien.
A more thorough explanation:
Definition: Extinguishment of lien refers to the discharge of a lien by operation of law.
Example: A homeowner has a mortgage on their property. Once the mortgage is paid off, the lien on the property is extinguished.
Explanation: In this example, the mortgage is the lien on the property. When the homeowner pays off the mortgage, the lien is discharged by operation of law, meaning it is automatically extinguished. This means that the lender no longer has a legal claim on the property.
Another example: A contractor files a mechanic's lien on a property for unpaid work. If the contractor fails to take legal action to enforce the lien within a certain time frame, the lien may be extinguished by operation of law.
Explanation: In this example, the mechanic's lien is extinguished by operation of law because the contractor did not take legal action to enforce it within the required time frame. This means that the contractor no longer has a legal claim on the property for the unpaid work.