3 Encumbrances Flashcards
What is an encumbrance?
Any flaws such as claims, charges, or liabilities that attach to and are binding on real estate.
What is a lien?
A non-possessory charge against property to provide security for a debt or an obligation of the property owner.
What are the 2 categories of liens?
Specific and General
What is a specific lien?
A lien secured by a specific parcel of property and affects only that particular property.
What are types of Specific Liens?
- Mortgage
- Real property taxes
- Mechanic’s lien
- Commercial Real Estate Broker’s lien
Which lien has superiority over all liens?
Real Property Taxes
Special assessment liens
Improvement taxes for things such as sidewalks sewers or townhouse roofs.
When can a mechanics lien be filed?
Within 120 days after last day of providing services and materials
When can a properly filed mechanics lien be enforced?
Within 180 days after a worker has furnished labor or materials
Time frame for a broker to file a North Carolina commercial real estate broker lien?
90 days after tenant takes possession
What type of project qualifies for a mechanics lien?
Any NC residential or commercial construction projects where the cost equals or exceeds $30,000
What is a general lien?
A lien that affects all the property of a debtor both real and personal rather than a specific parcel of real property.
Types of general liens.
- Judgement
- Personal property tax liens
- State Tax liens
- Federal Tax liens
What is Lis Pendens?
A lawsuit that may affect title.
What is writ of attachment?
An encumbrance at the request of a creditor for the court to retain custody of an unsecured property to satisfy a judgment.
What is writ of execution?
An issuance directing the county sheriff to sell the property to satisfy a judgment.
What is an easement?
A nonpossessory right to use the land of another for particular purpose.
What is an easement appurtenant?
An easement that is annexed to the ownership of one parcel of land and use for the benefit of another parcel of land.
What is an easement in gross?
An individual or company interest in or right to use another’s land.
3 ways to create an easement?
- Express (written or spoken)
- Implied (actions by necessity)
- Operation of law (eminent domain)
What is a personal nontransferable privilege to enter the land of another for specific purpose?
A license
What is an improvement such as a building, fence, or driveway that illegal extends beyond the land of its owner?
An encroachment
What are 5 ways to terminate an easement?
- Release by dominant over servient
- Combing of lands
- Abandonment by dominant owner
- Failure of purpose
- Expiration
What are ad valorem taxes?
General real estate property taxes based on value of the property.
NC machinery act
- Set details of property taxation
- Requires assessed value of properties be set at 100% of fair market value at least once every 8 years
- Adjustments up or down may be made at each 4 year interval between assessments
What is assessment?
The official evaluation process for setting real estate property taxes by county or Township.
Annual taxes =
Tax rate x (assessed value/100)
Assessed Value =
(Annual taxes / Tax rate) x 100
Tax Rate =
(Annual taxes / Assessed value) x 100
What is the NC Tax Timetable?
Jan 1- Tax lien filed Jan 5- Last year’s tax must be paid Jan 31- taxable property listed July 1- New tax rate set August- tax bills mailed Sept 1- tax due and payable Dec 31- end of tax year
What is an easement in necessity?
When land has no access to a street or public way.
What are property assessments ?
Valuation based on sales of comparable properties by county or township tax assessors.
