What is an example of a voluntary lien?

A mortgage is considered a voluntary lien because it is established through the agreement of the parties involved, typically the borrower and the lender. When a homeowner applies for a mortgage to finance the purchase of their property, they willingly sign documents that create the lien on the property. This lien gives the lender a security interest in the property until the mortgage is paid off, reflecting the borrower's desire to obtain financing and the understanding of the associated obligations.

In contrast, other types of liens, such as tax liens and judgment liens, are involuntary. A tax lien is imposed when property taxes are not paid, and a judgment lien arises from court adjudications against a property owner. Although a mechanic's lien can sometimes arise from a voluntary context, it is typically used as a remedy for contractors or material suppliers after work is performed or materials are provided, often without the explicit agreement of the property owner in the same way a mortgage agreement is established. Therefore, the defining feature of a mortgage as a voluntary lien is its foundation in a contractual agreement between the borrower and lender.