What is a voluntary lien?

A voluntary lien is created with the explicit consent of the property owner, making option C the correct choice. This type of lien is typically a result of a deliberate decision by the owner to use their property as collateral for a debt or obligation. Common examples include mortgages, where the homeowner agrees to let the lender place a lien on the property in exchange for financing.

In contrast, a lien placed without the owner's knowledge suggests a lack of consent, thus it cannot be classified as voluntary. A court-ordered lien, or an involuntary lien, arises from a legal judgment, which again does not involve the owner's agreement. Lastly, a lien solely for unpaid taxes is typically categorized as a tax lien, which is a specific form of involuntary lien that does not reflect the owner's consent. Therefore, understanding the defining characteristic of a voluntary lien revolves around the owner's proactive agreement to the lien's establishment.