Which type of lien allows the holder to keep property until the lien is satisfied?

A possessory lien is a legal claim that allows the holder to retain possession of property until a debt or obligation related to that property is satisfied. This type of lien is commonly used in situations where a service has been provided or materials have been delivered, but payment has not yet been made. For instance, a mechanic may keep a car until the owner pays for repairs, thereby securing their interest in the property through possession.

In contrast, the other types of liens mentioned do not inherently grant the holder the right to possess the property. A recorded lien serves as a public notice of a claim on the property for unpaid debts but does not give the lienholder the right to retain physical possession. Similarly, a mechanic's lien generally refers to a claim against real property for construction or repair work performed, also without necessarily implying the right to possess the property. A material lien is not a commonly used term and likely refers to a lien involving materials in the construction process rather than the concept of possession.

By focusing on the ability to retain possession of the property as a means of securing a debt, the possessory lien serves a unique and important function in protecting the rights of those who provide services or materials.