What type of lien arises from common law?

Study for the Louisiana Title Insurance Exam. Engage with flashcards and multiple choice questions. Hints and explanations guide your way. Prepare confidently for your certification!

An equitable lien arises from common law, which originates from judicial decisions and legal precedents rather than from statutes or legislation. This type of lien is typically used to enforce a right or claim to a specific property, often resulting from a contract or other agreement. It arises when one party has a legal claim to the property of another, typically because of a bond or obligation that creates an equitable interest, allowing the holder to seek satisfaction from the property in question through legal remedies.

Equitable liens are prominent in situations where an unjust enrichment has occurred, such as a contractor needing to secure payment for work performed on a property, thereby granting them a claim against the property until payment is made. This distinguishes it from other liens, like statutory liens, which are created by specific statutes, or vendor's liens, which stem from the seller's right to reclaim property sold on credit. Involuntary liens are also distinct, as they arise without the consent of the property owner, such as those imposed by courts for judgments or tax debts.

Thus, since equitable liens are grounded in principles established by common law rather than through legislative action, they accurately represent the type of lien referred to in the question.

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