What legal mechanism may prevent property owners from selling their property?

The correct answer is the term "lien," which refers to a legal right or interest that a lender has in the borrower’s property, granted until the obligation of the loan is satisfied. When there is a lien on a property, it encumbers the title of that property. This encumbrance means that the property cannot be freely sold or transferred until the lien is resolved, usually requiring the debt to be paid off.

Liens are often placed on properties as a form of security for creditors, and they can come in various forms, including tax liens, mechanic's liens, and judgment liens. Each type serves to protect the interest of those owed money by ensuring they can claim ownership or proceeds from the property if the owner attempts to sell it while still indebted.

Understanding liens is essential for anyone engaged in real estate transactions, as these legal mechanisms can significantly impact the ownership and sale of property.