What does a lienholder do regarding property?

A lienholder is an entity or individual that has a registered claim against a property, which is typically used as collateral for a loan. This claim ensures that if the borrower defaults on the loan or fails to meet the obligations of the agreement, the lienholder has the legal right to take possession of the property or receive compensation from its sale.

In the context of automobile financing, for example, when a person takes out a loan to purchase a vehicle, the lender becomes the lienholder. This protects the lender's financial interest in the vehicle, as they can reclaim it if payments are not made. Therefore, option B accurately reflects the key function of a lienholder in relation to property.

The other options do not align with the role of a lienholder. A guarantor, as mentioned in option A, would provide a guarantee for loan repayment but does not hold a claim against the property itself. Offering insurance coverage, as suggested in option C, is not within a lienholder's purview; instead, insurance is typically provided by insurance companies. Lastly, acting as a property manager, as stated in option D, involves overseeing the property on behalf of the owner but does not pertain to the financial claim or security interest that defines a lien