What is the main feature of an equitable lien?

An equitable lien is primarily characterized by its derivation from a contract agreement or the principles of equity. This type of lien arises not from a formal written document but rather from the actions and intentions of the parties involved, often reflecting a situation where one party has a right to benefit from the property of another due to an agreement, even if that agreement isn’t documented in writing.

Equitable liens often occur in situations such as a sale of property where the buyer has made payments but the title has not yet been conveyed, or in cases of unjust enrichment where one party has benefited at the expense of another. The essence of an equitable lien is that it serves to ensure fairness and justice rather than mere technicalities, emphasizing the agreement or relationship between the parties.

The other choices do not accurately define the nature of an equitable lien. For example, the option concerning administration by the IRS does not relate to the fundamental characteristics of equitable liens, nor does the notion of primarily serving corporate entities or being created by written documentation align with its definition. Overall, the essence of an equitable lien stems from its contractual roots, making the identification of the correct answer significant in understanding liens in legal contexts.