(Ch. 15) Liens, Foreclosure And Redemption Flashcards
- The right by which a creditor has a claim against a borrower’s property is most broadly described as:
(A) a judgment.
(B) an attachment.
(C) a writ of execution.
(D) a lien.
D
A writ of execution is the remedy if the debtor does not pay.
- Which of the following statements is most correct concerning liens and encumbrances?
(A) The owner cannot encumber his property.
(B) Encumbrances lower the value of the property.
(C) An easement is both a lien and encumbrance.
(D) A mortgage is an encumbrance but not a lien.
B
All liens are encumbrances, but not all encumbrances are liens. Encumbrances always lower value.
- Which of the following is NOT an encumbrance?
(A) A mechanic’s lien.
(B) A mortgage.
(C) An easement.
(D) Dominant owner’s easement.
D
An easement encumbers the servient property
- Which of the following is NOT a voluntary lien?
(A) A mortgage.
(B) A deed of trust.
(C) A mechanic’s lien.
(D) All the above.
C
A voluntary lien is a debt that the property owner agrees to have recorded, such as a mortgage or trust deed.
- The lien having priority over all others is:
(A) the one first created and recorded.
(B) a federal income tax lien.
(C) a mechanic’s lien.
(D) a property tax lien.
D
An exception to the rule that liens are satisfied in the order of recording.
- In New Jersey the redemption period for the property owner after a tax sale is:
(A) ten days.
(B) two years.
(C) six years.
(D) 20 years.
B
The redemption period is six months if municipality holds the lien.
- Which of the following may NOT file a mechanic’s lien for completed work that remains unpaid:
(A) Carpenter.
(B) Real estate broker.
(C) Electrician.
(D) Architect.
B
lien given as security for payment of work performed and materials furnished to improve real estate.
- Which of the following statements is true?
(A) All liens are encumbrances.
(B) All encumbrances are liens
(C) Specific liens affect all property of the debtor located in the state.
(D) Judgments are specific liens.
A
B, C and D are false statements.
- When the court issues an order to sell property to satisfy a judgment, it is known as a (an)
(A) easement.
(B) encumbrance.
(C) attachment.
(D) writ of execution.
D
An attachment is a court order tying up defendant’s property until compietion of a court suit.
- Which of the following encumbrances would constitute a lien on real property?
(A) Encroachment.
(B) Restriction
(C) Easement.
(D) Judgment.
D
The others do not involve a creditor.
- If the proceeds of a foreclosure sale are less than the outstanding debt and foreclosure expenses, which of the following remedies are available?
(A) There is no remedy.
(B) The mortgagee must absorb the loss since the mortgagor is liable only for fore- closure expenses.
(C) The owner has a statutory right of redemption.
(D) The mortgagee may obtain a deficiency judgment against the mortgagor.
D
By taking action for default on the promissory note.
- A lien filed by a sub-contractor is:
(A) a claim against the general contractor.
(B) a claim against the mortgage lender.
(C) a claim against the broker handling the sale.
(D) a claim against the property
D
Property owner can prevent this by record ing contract with the general contractor.
- Which of the following is an encumbrance, but NOT a lien?
(A) Mortgage.
(B) Restriction.
(C) Trust Deed.
(D) Taxes.
B
No creditor involved.
- A recorded notice of a current lawsuit involving title to real property is termed:
(A) a lis pendens.
(B) an attachment.
(C) an acknowledgment.
(D) suitus currentia.
A
A title search would discover notice of the pending suit.
- A mechanic’s lien takes precedence over which of the following?
(A) A subsequently recorded judgment.
(B) A lien for delinquent real property taxes.
(C) Both A and B.
(D) Neither A nor B.
A
The tax lien would always be satisfied first, but subsequently recorded liens would stand in line.
