What type of lien is voluntarily granted by one party to another?

A voluntary lien is a type of lien that is willingly agreed to by the property owner, meaning they have taken affirmative steps to allow another party to encumber their property as security for a debt or obligation. This typically occurs in situations like a mortgage, where the homeowner agrees to let the lender place a lien on their property in exchange for a loan.

This arrangement is beneficial for both parties: the lender secures a legal claim against the property, reducing risk in case of default, while the borrower gains access to funds they may not otherwise have had. The key characteristic of a voluntary lien is that it is established through the consent of the property owner, distinguishing it from other types of liens which may be imposed without the owner's agreement.

In contrast, involuntary liens arise without the property owner's consent, such as tax liens or judgment liens, where the government or a creditor forces a claim on the property due to unpaid obligations. Statutory liens are established by law and do not require a voluntary agreement, while judicial liens are related to court judgments. Each of these categories helps clarify the involuntary nature of the claims as compared to the consensual agreement implied in a voluntary lien.