Chapter 13 Yellow text RE 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

Security

Answer 2

or collateral, something of value that the borrower promises to give the lender if the borrower fails to repay the debt.

Question 3

Voluntary Lien

Answer 3

is created intentionally by the property owner’s action, ie. a mortgage loan.

Question 4

involuntary lien

Answer 4

not a matter of choice, it is created by law and maybe either statutory or equitable.

Question 5

Statutory lien

Answer 5

is created by statute ie a tax lien, it exists without any action by the property owner.

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 account and which can be filed in the county where the debtor owns property, would create an involuntary equitable lien one the debtor’s RE.

Question 7

General Liens

Answer 7

affect all the property, both real and personal, of a debtor.
Includes:
judgements,
estate and inheritance taxes,

Question 8

When does a lien attach to real property?

Answer 8

At the moment it is filed and recorded.

Question 9

Specific Liens

Answer 9

are secured by specific property and affect only that particular property.  
Include:
Vendor's liens
mechanics' liens
Mortgage liens
real estate tax liens
special assessments 
utilities

Question 10

Vendor’s liens

Answer 10

belonging to a vendor (seller) for the unpaid purchase price of the property, when the vendor has not taken any other lien or security, such as a mortgage, beyond the personal obligation of the purchaser.

Question 11

Effect of Lien on a Title

Answer 11

Once in place the lien runs with the property,
It will bind all successive owners until the lien is paid or settled and the title is cleared by the filing of a RELEASE OF LIEN by the lien holder.

Question 12

Priority of Liens

Answer 12

refers to the order in which claims against the property will be satisfied if the property is sold by the debtor.
First to record, first in right.

Question 13

Junior Lien

Answer 13

one that comes after an earlier lien. can foreclose on a property but the property will still be subject to the lien or liens with higher priority.

Real Estate Taxes and Special assessments generally take priority

Question 14

subordination agreements

Answer 14

written agreements between lien holders to change the priority of mortgage, judgement, and other liens. Under Subordination the holder of a superior or prior lien agrees to permit a later lienhloder’s interest to take precedence.

Question 15

General RE tax

Answer 15

an Ad valorem tax
specific
involuntary
statutory

Question 16

General Taxes

Answer 16

Specific
Involuntary
Statuary
ad valorem tax

Question 17

Ad valorem tax

Answer 17

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

Question 18

Exemptions from General Taxes

Answer 18

certain RE is exempt from taxes:
cities,
municipal organizations
st and fed governments
religious and charitable organizations
hospitals
educational institutions