What is an encumbrance that usually makes real or personal property the security for payment of a debt?

An encumbrance that makes real or personal property serve as security for the payment of a debt is referred to as a lien. A lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. This means that if the borrower fails to meet their payment obligations, the lender has the right to take possession of the property through legal means to recover the owed amount.

In real estate, for example, a lien can be placed on a property when a mortgage is taken out; it ensures that the lender has a claim against the property until the mortgage is paid off. This function of a lien is crucial in financial transactions as it provides security to lenders and holds borrowers accountable for their debts. Other choices, such as mortgage or loan, refer to the broader concepts of debt financing rather than the specific legal claim associated with the property. A claim can refer more generally to a demand for something owed but does not specifically denote the legal security interest in property that a lien provides.