What characterizes a voluntary lien?

A voluntary lien is characterized by the fact that it is a legal claim against a property that is willingly agreed upon and signed by the property owner, typically as a result of borrowing money. This means that the owner consents to using their property as collateral for a loan, thereby creating the lien.

The most common example of a voluntary lien is a mortgage, where the borrower signs a contract with the lender that grants the lender a security interest in the property. If the borrower defaults on the loan, the lender has the right to foreclose on the property to recoup the unpaid debt.

The option stating that it is created without the owner's consent describes an involuntary lien, such as a judgment lien or a tax lien, which is imposed by law rather than through the agreement of the property owner. The assertion that only government entities can file a voluntary lien is incorrect, as private lenders may also create these liens. Lastly, the idea that a voluntary lien is automatically valid upon property transfer does not align with its nature; the lien remains with the property but requires proper documentation and acknowledgment of its existence during the transfer process. Thus, the defining characteristic of a voluntary lien is indeed the borrower's voluntary agreement to create the lien through their signature.