What best defines an equitable lien?

An equitable lien is best defined as one that is created by operation of law rather than through a written agreement or specific legal instrument. This type of lien serves the purpose of ensuring that a party has a legal right or claim against a property, often arising from a court action or statutory provision that imposes the lien as a means to secure an obligation or enforce a right.

In contrast to agreements or mortgages that require specific documentation, an equitable lien is typically established when someone has a claim based on fairness—such as when they have contributed to property improvement or have paid expenses on behalf of the property owner. The law recognizes this claim to prevent unjust enrichment, effectively allowing the claimant to seek recovery on the property even in the absence of a formal contract.

Understanding that equitable liens are grounded in principles of fairness and justice, rather than traditional forms of writing or court rulings, clarifies their role in property and real estate law.