Property lien for seller financing--How to structure this?

[Page Huyette]

I'm looking at a duplex with seller financing and trying to determine the best way to structure the deal so I can refinance at a later date. Upon talking to my local bank about the future refinance of the loan into a conventional, I was told:

Can someone explain if they are both referring to the same lien? And, how is that lien filed -- similar to what a bank would file with the county?