Legal Definitions - extinguishment of lien

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.