Ch. 13 Taxes and Other Liens Flashcards
Lien
a charge or claim against a person’s property made to enforce the payment of money
encumbrance
any charge or claim that attaches to real property and lessens its value or impairs its use
voluntary lien
created intentionally by the property owner’s actions, such as when someone takes out a mortgage loan
involuntary lien
not a matter of choice; it is created by law and may be either statutory or equitable
statutory lien
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.
equitable lien
arises out of common law, a court ordered judgement that requires a debtor to pay the balance on a delinquent charge
general lien
affect all the property, both real and personal of a debtor
specific lien
secured by specific property and affect only that particular property
vendor’s lien
lien belonging to the vendor (seller) of the unpaid purchase price of the property
junior lien
one that comes after an earlier lien
Subordination Agreements
allows a later lien to take priority over an earlier lien
General Real Estate Tax/Ad valorem Tax
based on the value of the property being taxed and are specific, involuntary, statutory liens
Assessment
An official valuation of property for the purpose of levying a tax
Equalization
correct inequalities in statewide tax assessments, an assessment equalization factor is used to achieve uniformity
Tax Levy
formal action taken to impose a tax
Statutory right of redemption
the defaulted owner may redeem the property by paying the amount collected at the tax sale pus interest and charges (after being sold)
Equitable Right of redemption
The delinquent taxpayer may redeem the property anytime ‘before’ the tax sale by paying delinquent taxes, plus interest and charges
Special Assessment
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
Mortgage Lien
is a voluntary lien on real estate given to a lender by a borrower as security for a real estate loan
Mechanics Lien
a specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property
judgement
a general, involuntary, equitable lien- a decree issued by a court
Satisfaction of judgment
clears the record of a lien
Lis Pendens
notice of a possible future lien, lawsuit pending
writ of attachemtn
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
Lien for Municipal Utilities
specific, equitable, involuntary lien on property who refuses to pay utility bills
Corporate Franchise Tax Lien
general, statutory, involuntary lien on all real and personal property owned by the corporation
IRS Tax Lien
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