A Tax Lien is a government claim against an asset due to unpaid taxes. If the owner fails to settle, authorities may seize or auction the property.

• Debt Recovery Tool: Used by authorities to collect unpaid dues.
• Asset Restrictions: Owners cannot sell until cleared.
• Auction Potential: Liens may be sold to investors.
• Legal Implications: Can lead to forced asset liquidation.

Clearing a tax lien promptly prevents ownership complications and financial penalties.