Escrow & Title

What is an involuntary lien versus a voluntary lien in Nevada real estate?

ABoth are created by the property owner's agreement

BA voluntary lien is created by the owner's agreement (mortgage, deed of trust); an involuntary lien is imposed without the owner's consent (tax lien, judgment lien, mechanic's lien)✓ Correct

CAn involuntary lien requires court approval; a voluntary lien does not

DVoluntary liens have higher priority than involuntary liens in Nevada

Explanation

Voluntary liens are created with the property owner's consent — like a mortgage or deed of trust. Involuntary liens are imposed by law without the owner's agreement — such as property tax liens, judgment liens, and mechanic's liens.

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Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.