A consensual claim to the property of another as collateral to ensure the repayment of a debt. The lien is voluntary because the debtor agreed to it; the placement of a voluntary lien is often necessary in order to secure a loan. An example is the lien placed on real estate to guarantee a mortgage. A voluntary lien contrasts with an involuntary lien, which may be imposed by a court or other body for non-payment of a debt.
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An agreement to allow the use of specific property as collateral for a debt. Contrast with involuntary lien.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.