Chapter 5

Question 1

A mechanic’s lien would be properly classified as a(n):

Answer 1

Involuntary lien

Question 2

Judgment liens are:

Answer 2

Involuntary liens

Question 3

After real estate taxes have been sold by the state or county to satisfy a delinquent tax lien, the defaulted owner usually has a right to:

Answer 3

Redeem the property within the time specified by law

Question 4

Normally, the priority of general liens is determined by:

Answer 4

The order in which they are filed or recorded

Question 5

The current value of a property is $248,500. 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?

Answer 5

$5,964

Question 6

If the market value of property is $584,500 and the assessed ratio is 40%, what are the monthly taxes if the tax rate is 30 mills?

Answer 6

$584.50

Question 7

Taxes levied on a property owner to pay to install sidewalks or sewers are called:

Answer 7

Special assessments

Question 8

Which of the following is true of the Illinois homestead exemption?

Answer 8

it reduces the assessed value of certain residential properties

Question 8

When properly recorded in the county where the real estate of the defendant is located, a judgment becomes a(n):

Answer 8

involuntary lien.

Question 9

When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n):

Answer 9

mechanic’s lien.

Question 10

Which of the following liens does not need to be recorded to be valid?

Answer 10

Real estate tax lien

Question 11

When a lien against a parcel of real estate may result from a lawsuit currently before the court, one examining the public records would look for:

Answer 11

a lis pendens.

Question 12

The current market value of a property is $335,000. For tax purposes, it is assessed at 40 percent of market value. The tax rate is $4 per $100 of assessed value. What is the amount of the tax due?

Answer 12

$5,360

Question 13

Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt?

Answer 13

Judgment lien

Question 14

Mechanic’s liens are based on:

Answer 14

state law.

Question 14

Which of the following is a voluntary lien?

Answer 14

Mortgage lien

Question 15

Which of these is a lien on real estate?

Answer 15

A recorded mortgage

Question 16

A mechanic’s lien can be filed against an owner’s real estate by a(n):

Answer 16

lumber company furnishing materials ordered by the property owner

Question 16

Mechanics liens must be filed within _________ of job completion.

Answer 16

4 months

Question 16

A court orders real estate to be sold to satisfy an unpaid mortgage lien is an action known as a(n):

Answer 16

foreclosure.

Question 17

Gordon has defaulted in the payment of several of his debts, and the court has ordered his property sold to satisfy them. A title search revealed several outstanding liens against the property. Which of the following liens has first priority?

Answer 17

The current year’s real estate tax lien

Question 18

All of the following are specific liens EXCEPT:

Answer 18

judgments.

Question 18

All of the following are specific liens:

Answer 18

real estate taxes, mortgages, mechanic’s liens.

Question 19

The assessed value is based on:

Answer 19

Sales price of comparable properties

Question 20

What is the difference between a general and a specific lien?

Answer 20

A general lien covers all of the debtor’s property, while a specific lien covers only a certain piece of real property.

Question 21

Specific liens include all of the following:

Answer 21

real estate taxes, mechanics lien, special assessments.

Question 22

A mechanics lien can be placed on:

Answer 22

real property only.

Question 23

Specific liens include all of the following except for:

Answer 23

judgements.

Question 24

Debts that are incurred by an individual and become liens against all real property owned by that person are:

Answer 24

voluntary liens.

Question 25

What would a judgment, a lis pendens notice and a foreclosure have in common?

Answer 25

They are all involuntary liens.

Question 26

Which of the following is NOT a specific lien?

Answer 26

IRS lien

Question 27

George 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. George may find that a lien has been placed against his:

Answer 27

duplex.

Question 28

At which of the following sales do interested parties try to purchase the tax lien to a property?

Answer 28

Annual

Question 28

What is the rate of assessment in most of Illinois?

Answer 28

33.33% of fair market value.

Question 29

In Illinois, a contractor’s right to a lien expires how long after completion of the work, if no suit is filed within that time?

Answer 29

2 years

Question 30

In Illinois, when does a judgment become a general lien on a defendant’s real and personal property?

Answer 30

At the time it is recorded in the county recorder’s office

Question 31

All of the following are entitled to a lien on property in Illinois:

Answer 31

commercial real estate brokers, subcontractors, general contractors.

Question 32

All of the following are entitled to a lien on property in Illinois, EXCEPT:

Answer 32

residential real estate brokers.