Chapter 6: Liens and Easements Flashcards
What is considered an encumberance or cloud on title?
Liens
Monetary claim making property security for payment of debt
Lien
Legally enforceable rights to limited use of another land. Can pertain to any parts of land
Easements
How is a lien created:
A. agreement of parties (mortgage)
B. Operation of Law (tax lien, mechanics lien, etc)
TRUE OR FALSE: If a lien attached to a property is not released prior to sale, the buyer buys and the lien is wiped and released of all existing liens and encumberances?
FALSE
If not released prior to sale, buyer buys subject to ALL existing liens and encumberances
3 items to consider regarding liens:
P.E.S
- Priority
- Enforcement
- Satisfaction
Which type of lien takes priority, regardless of date of recording?
Real Estate Tax Liens
What a lien is recorded, what happens to the title?
Cloud on title
How do you remove a lien on title?
Owner must ensure that the creditor (lienor) records satisfaction of lien ASAP when paid off
When a court orders an encumbered property be sold to satisfy unpaid debts, what is this?
Enforcement of Liens- creditor must request proper jurisdiction to order sale of property in question
Results from court judgements, IRS tax, and estate inheritance tax, and is directed against individual debtor, and therefore attaches to all of his property
General Lien
What type of lien is attached to 1 specific parcel of RE, not people?
Specific Lien
Mortgage liens, utility, mechanics lien, property tax liens, special assessment
Specific Lien
Type of lien entered into an agreement of parties
Voluntary Lien
Type of lien created by operation of law- statutory or equitable
Involuntary Lien
What type of lien is a mortgage?
Voluntary Lien
What type of lien is a property tax lien?
Involuntary Lien
Established or results from laws passed by legislation, created under statue
Statutory Lien
What type of lien is a mechanic or vendor lien?
Statutory Lien
Private, written contract showing intention to pledge property as security for debt.
Equitable Lien