Legal Definitions - lienholder

Definition: A lienholder is a person or entity that has a legal claim or interest in a property or asset until a debt or obligation is paid off. This person or entity is also known as a lienor or lienee.

Example: If you take out a car loan, the lender becomes the lienholder until the loan is fully paid off. This means that the lender has a legal claim to your car until you have paid back the loan in full. Another example is a contractor who has completed work on a property but has not been paid. The contractor may file a lien against the property, making them a lienholder until they receive payment for their services.

The examples illustrate how a lienholder has a legal claim or interest in a property or asset until a debt or obligation is paid off. In both cases, the lienholder has the right to take legal action to recover the debt owed to them.