Chapter 4: Public Regulation And Private Encumbrances

Question 1

What are Ad Valorem Taxes?

Answer 1

Taxes assessed against an owner of real property in an amount based upon the value of the property.

Question 2

What are Building Codes?

Answer 2

Public laws that regulate methods and materials to be used in the construction of improvements.

Question 3

What is the Comprehensive Enviromental Response, Compensation and Liability Act (CERCLA)?

Answer 3

Also known as Superfund, this federal legislation created a trust fund designed to finance the activities of the EPA and gave the EPA the authority to recover cleanup costs for contaminated properties from the parties responsible for the contamination.

Question 4

What is Eminent Domain?

Answer 4

Power of government to take private property for public use.

Question 5

What is Encumbrance?

Answer 5

A claim or charge on a property, such as a lien or mortgage, which lessens the property’s value.

Question 6

What is Judgment?

Answer 6

Money debt resulting from a lawsuit. Judgments are liens on real property owned by the judgment debtor.

Question 7

What is a Lien?

Answer 7

Money debt attached to real property. The holder of the lien can sell the real property to pay the debt.

Question 8

What is a Mechanic’s or Materialmen’s Lien?

Answer 8

Lien imposed by law on real property to secure payment for work performed or materials furnished for the construction, repair, or alteration of improvements on the real property.

Question 9

What is Phase 1?

Answer 9

An examination of real property to determine if it contains environmental contamination.

Question 10

What is Phase 2?

Answer 10

A more intensive environmental examination of property, usually including the testing of soil and water for evidence of contamination.