Chapter 10: Real Estate Taxes And Other Liens Flashcards
Encumbrance
Any charge or claim that attaches to real property and lessons it’s value or impairs its use
Voluntary lien
Created intentionally by the properties owners actions, such as when someone takes out a mortgage
Involuntary lien
Not a matter of choice; it is created by the law. It may be either statutory or equitable
Statutory lien
Created by statute. A real estate tax lien, is an involuntary, statutory lien
Equitable lien
Created by a court to ensure the payment of a judgment as well as by agreement
General liens
Fax all property, both real and personal
Specific Liens
Secured by specific property and effect only that particular property
What are the four ways to create a lien. VISE
Voluntary
Involuntary
Statutory
Equitable
Priority of liens
Liens take priority from the date that they are recorded in the public records of the county in which the property is located
What lean takes priority as provided by state law but never over tax and special assessment liens
Mechanics lien
What is used to achieve uniformity. It may be applied to raise or lower assessments in a particular district or county
Equalization factor
Assessed value x equalization factor - exemptions x tax rate = ?
Annual tax
General real estate taxes are payable into equal installments in the year after they are levied
One half by June 1 in the second half by September 1
Real estate taxes that have remained delinquent for the statutory period Can be collected through what
Tax sale
Sometimes called a deed of trust Lane, it is a voluntary lien on real estate given to a lender by a borrower as security for a real estate loan
Mortgage lien
A specific, involuntary lien that get security to persons or companies that perform labor or furnish material to improve real property
Mechanics lien
How soon after the work is completed can a contractor with unpaid bills enforce their lien rights
Four months
Should be collected by the landowner from each contractor and subcontractor to create a continuing record that all lien claimants have released their lien rights
Lien waivers
And order issued by a court that settles and defines the rights and obligations of the parties to a lawsuit. Is a general, involuntary, equitable lien on both real and personal property owned by the debtor
Judgment
What taxes are general, statutory, involuntary liens that encumber a deceased persons real and personal property
Federalist state taxes and state inheritance taxes
Lien
A charge our claim against property that is made to enforce the payment of money
When properly recorded in the county where the real estate of the defendant is located, a judgment becomes?
Involuntary lien
When a company furnishes materials for the construction of the house and is subsequently not paid, it may file?
Mechanics lien
What lean does not need to be recorded to be valid?
Real estate tax lien
When a lien against a parcel of real estate may result from a lawsuit currently before the court, when examining the public records would look for?
A lis pendens
A mechanics lien will be properly classified as?
Statutory lien
The current market value of the property is $335,000. For tax purposes, it is assessed at 40% of market value. The tax rate is $4 per $100 of assessed value. What is the amount of the tax due?
$5360
Under which type a lien can both the real property and personal property of the debtor be sold to pay the debt?
Judgment lien
What type of lien is a voluntary lien?
Mortgage lien
I mechanics liens are based on?
State law
Court orders real estate to be sold to satisfy an unpaid mortgage lien is an action known ass?
Foreclosure
Mechanics lien can be filed against an owners real estate by?
A lumber company furnishing materials ordered by the property owner
Judgement liens are?
Involuntary liens
Property owner contracted to have a heated gazebo constructed on a property. When he did gazebo was finished, the owner refused to pay for the improvement, and the contractor file the lien for nonpayment. This lien was most likely?
Specific lien
A property owner has defaulted in the payment of several dots, and the court has ordered his property to be sold to satisfy them. A title search revealed several outstanding liens against the property. What lien would have first priority?
The current years real estate tax lien
After the state or county sells real estate in order to satisfy a delinquent tax lien, the default it owner usually has a right to?
Redeem the property within the time specified by the law
Normally, the priority of liens is determined by?
The order in which they are filed or recorded
What type of liens are specific liens?
Real estate taxes
Mortgages
Mechanics lien
What would be a lien on real estate?
Recorded mortgage
When establishing the general rule related to priority of liens?
The date on which the lien was recorded determines priority
The current value of the property is $340,000 the property is assessed at 40% of its current value, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed value, what is the amount of tax due on the property?
$8160
What is the difference between a general and a specific lien?
General lien covers all the debtors property, while a specific lien covers only a certain piece of real property
If the market value of the property is $284,500 and the assessment rates ratio is 35%, what are the monthly taxes at the tax rate is 30 Mills?
$248.94
Taxes levied on a property owner to help fund the installment of sidewalks or sewers are called?
Special assessments
That’s that are incurred by an individual and become liens against all real property owned by that person are?
Voluntary liens
What do a judgment, Lis pendens notice and a foreclosure have in common?
They’re all involuntary liens
What would be an example of a general lien?
IRS lien
Man owns a principal place of residence and a duplex. He pays the property taxes on his home, but fails to pay the property taxes on the duplex. The man may find that a lien has been placed against his?
Duplex
