Which of the following is considered a voluntary lien?

Which of the following is considered a voluntary lien?

• A. A tax lien
• B. A mechanic's lien
• C. A mortgage lien
• D. A judgment lien

Answer: (C)

A mortgage lien is classified as a voluntary lien because it arises from an agreement between the borrower and the lender. When a property owner decides to take out a mortgage, they willingly encumber their property to secure the loan for purchasing or refinancing their home. This consent is key to a voluntary lien, as the property owner must actively agree to the terms of the mortgage and allow the lender to place a lien on the property. In contrast, a tax lien is typically imposed by a governmental body due to unpaid taxes, meaning that the property owner does not voluntarily grant this encumbrance. A mechanic's lien can be considered involuntary as it may be placed by a contractor or supplier who has not been paid; thus, it emerges from a service provided rather than a direct agreement with the property owner. A judgment lien arises from a court ruling following a lawsuit where the property owner may not have voluntarily agreed to the imposition of the lien. Therefore, the defining feature of a voluntary lien is the consent given by the property owner, which specifically applies to a mortgage lien.

A mortgage lien is classified as a voluntary lien because it arises from an agreement between the borrower and the lender. When a property owner decides to take out a mortgage, they willingly encumber their property to secure the loan for purchasing or refinancing their home. This consent is key to a voluntary lien, as the property owner must actively agree to the terms of the mortgage and allow the lender to place a lien on the property.

In contrast, a tax lien is typically imposed by a governmental body due to unpaid taxes, meaning that the property owner does not voluntarily grant this encumbrance. A mechanic's lien can be considered involuntary as it may be placed by a contractor or supplier who has not been paid; thus, it emerges from a service provided rather than a direct agreement with the property owner. A judgment lien arises from a court ruling following a lawsuit where the property owner may not have voluntarily agreed to the imposition of the lien. Therefore, the defining feature of a voluntary lien is the consent given by the property owner, which specifically applies to a mortgage lien.