Which type of lien is identified as not being voluntary?

Prepare for the Michigan State Title Insurance Exam. Enhance your study with flashcards and multiple-choice questions. Understand questions with detailed hints and explanations. Ace your exam!

A construction lien is classified as a non-voluntary lien because it arises from the provision of labor or materials for improvements to a property, without the owner's direct agreement to create a lien on that property. When contractors, subcontractors, or suppliers perform work or provide materials for a construction project and are not paid, they can file a construction lien to secure payment. This process is governed by specific laws in Michigan that protect the rights of those who enhance or improve property, even when the property owner has not willingly taken on that obligation.

In contrast, a mortgage lien is voluntary because it is created when a borrower agrees to encumber their property as security for a loan. Similarly, a vendor lien arises from a seller’s right to retain possession of goods sold until the purchase price is paid, which also involves an agreement between parties. An equitable lien, typically recognized by a court, is based on fairness and not necessarily tied to the consent of the property owner. Hence, while the other types of liens involve some level of consent or agreement, a construction lien is distinct in that it can be imposed without the property owner's prior knowledge or consent, but is justified by the work performed or materials supplied.

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