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A lien is a legal right or interest that a creditor has in a debtor's property, typically used as security for a debt. In real estate, the most common lien is a mortgage, the bank holds a lien on the property until the loan is fully repaid. Liens can also arise from unpaid service charges, contractor invoices, or court judgments. A property with liens cannot be freely sold until the liens are cleared.

In Dubai, mortgages are registered as liens with the DLD on the title deed. A property with a mortgage lien requires a No Objection Certificate (NOC) from the bank before it can be sold, and the mortgage must be discharged at or before the sale. Service charge liens can also encumber a property, owners' associations can restrict sales for units with unpaid service charges through the Mollak system.

Any lien on a property restricts what the owner can do with it. Before purchasing any property, verify the title is clear of liens. A property sold with an undisclosed lien passes the obligation to the buyer in some circumstances. Title due diligence is not optional; it is the most fundamental step in property acquisition.

Investors holding properties as collateral for other borrowings should understand that lenders register their claims formally with the DLD. This registration protects the lender's security interest but also means that any future sale or refinancing requires the lienholder's cooperation and formal release.