What type of lien is typically created when a property owner does not pay taxes?

When a property owner fails to pay property taxes, a statutory lien is created. This occurs because statutory liens are established by law, and in the case of unpaid taxes, specific statutes dictate that the tax authority has a legal right to place a lien on the property. This type of lien guarantees that the government will be given priority in collecting the owed amount during a property sale or foreclosure.

Statutory liens are classified as involuntary liens because they arise without the consent of the property owner. However, since the question specifically asks for the type of lien created by the failure to pay taxes, the term "statutory lien" is the most accurate description due to its legal basis established by statute. This reinforces the importance of compliance with tax obligations, as the lien protects the government's interest in receiving payment for the services provided to the property.

Understanding this concept is crucial for anyone studying title insurance, as it influences how property ownership is viewed in relation to debts and obligations tied to the property.