What is a special assessment lien primarily used for?

A special assessment lien is primarily used for collecting taxes that are specifically levied to fund improvements or services that benefit certain properties within a defined area. This mechanism allows local governments or municipalities to charge property owners for enhancements like road repairs, sewer systems, or public parks that directly increase the value or utility of their properties.

When a local government undertakes a project that provides a direct benefit to the properties in a certain area, the costs can be recovered through special assessments. The lien ensures that the property owners who benefit from these improvements contribute to the costs, often in proportion to how much their property benefits from the improvement. Once attached, the lien must be satisfied before the property can be sold, reinforcing the obligation of the property owner to pay their share for the improvements made.

In contrast, the other options focus on different functions: securing personal loans pertains to financial agreements unrelated to property improvements, establishing ownership is about proving legal title over properties, and transferring property titles relates to the process of changing ownership, which does not involve the financial mechanisms used for property enhancements.