Ch. 13 Taxes and Other Liens

Question 1

Lien

Answer 1

a charge or claim against a person’s property made to enforce the payment of money

Question 2

encumbrance

Answer 2

any charge or claim that attaches to real property and lessens its value or impairs its use

Question 3

voluntary lien

Answer 3

created intentionally by the property owner’s actions, such as when someone takes out a mortgage loan

Question 4

involuntary lien

Answer 4

not a matter of choice; it is created by law and may be either statutory or equitable

Question 5

statutory lien

Answer 5

Statutory liens do not result from a court case. They arise from statute. That means that the lien is created under certain circumstances because a law says that in those circumstances, a lien may be created.

Question 6

equitable lien

Answer 6

arises out of common law, a court ordered judgement that requires a debtor to pay the balance on a delinquent charge

Question 7

general lien

Answer 7

affect all the property, both real and personal of a debtor

Question 8

specific lien

Answer 8

secured by specific property and affect only that particular property

Question 9

vendor’s lien

Answer 9

lien belonging to the vendor (seller) of the unpaid purchase price of the property

Question 10

junior lien

Answer 10

one that comes after an earlier lien

Question 11

Subordination Agreements

Answer 11

allows a later lien to take priority over an earlier lien

Question 12

General Real Estate Tax/Ad valorem Tax

Answer 12

based on the value of the property being taxed and are specific, involuntary, statutory liens

Question 13

Assessment

Answer 13

An official valuation of property for the purpose of levying a tax

Question 14

Equalization

Answer 14

correct inequalities in statewide tax assessments, an assessment equalization factor is used to achieve uniformity

Question 15

Tax Levy

Answer 15

formal action taken to impose a tax

Question 16

Statutory right of redemption

Answer 16

the defaulted owner may redeem the property by paying the amount collected at the tax sale pus interest and charges (after being sold)

Question 17

Equitable Right of redemption

Answer 17

The delinquent taxpayer may redeem the property anytime ‘before’ the tax sale by paying delinquent taxes, plus interest and charges

Question 18

Special Assessment

Answer 18

a tax charged on real estate to fund public improvements to the property, and it creates a lien for the amount of the assessment on the property

Question 19

Mortgage Lien

Answer 19

is a voluntary lien on real estate given to a lender by a borrower as security for a real estate loan

Question 20

Mechanics Lien

Answer 20

a specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property

Question 21

judgement

Answer 21

a general, involuntary, equitable lien- a decree issued by a court

Question 22

Satisfaction of judgment

Answer 22

clears the record of a lien

Question 23

Lis Pendens

Answer 23

notice of a possible future lien, lawsuit pending

Question 24

writ of attachemtn

Answer 24

court order against the property of another person that directs the sheriff or other officer of the court to seize or take control of a property

Question 25

Lien for Municipal Utilities

Answer 25

specific, equitable, involuntary lien on property who refuses to pay utility bills

Question 26

Corporate Franchise Tax Lien

Answer 26

general, statutory, involuntary lien on all real and personal property owned by the corporation

Question 27

IRS Tax Lien

Answer 27

results from a person's failure to pay any portion of federal taxes such as income and withholding taxes general, statutory, involuntary lien on all real and personal property