Chapter 6: Liens and Easements

Question 1

What is considered an encumberance or cloud on title?

Answer 1

Liens

Question 2

Monetary claim making property security for payment of debt

Answer 2

Lien

Question 3

Legally enforceable rights to limited use of another land. Can pertain to any parts of land

Answer 3

Easements

Question 4

How is a lien created:

Answer 4

A. agreement of parties (mortgage)

B. Operation of Law (tax lien, mechanics lien, etc)

Question 5

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?

Answer 5

FALSE

If not released prior to sale, buyer buys subject to ALL existing liens and encumberances

Question 6

3 items to consider regarding liens:

P.E.S

Answer 6

1. Priority
2. Enforcement
3. Satisfaction

Question 7

Which type of lien takes priority, regardless of date of recording?

Answer 7

Real Estate Tax Liens

Question 8

What a lien is recorded, what happens to the title?

Answer 8

Cloud on title

Question 9

How do you remove a lien on title?

Answer 9

Owner must ensure that the creditor (lienor) records satisfaction of lien ASAP when paid off

Question 10

When a court orders an encumbered property be sold to satisfy unpaid debts, what is this?

Answer 10

Enforcement of Liens- creditor must request proper jurisdiction to order sale of property in question

Question 11

Results from court judgements, IRS tax, and estate inheritance tax, and is directed against individual debtor, and therefore attaches to all of his property

Answer 11

General Lien

Question 12

What type of lien is attached to 1 specific parcel of RE, not people?

Answer 12

Specific Lien

Question 13

Mortgage liens, utility, mechanics lien, property tax liens, special assessment

Answer 13

Specific Lien

Question 14

Type of lien entered into an agreement of parties

Answer 14

Voluntary Lien

Question 15

Type of lien created by operation of law- statutory or equitable

Answer 15

Involuntary Lien

Question 16

What type of lien is a mortgage?

Answer 16

Voluntary Lien

Question 17

What type of lien is a property tax lien?

Answer 17

Involuntary Lien

Question 18

Established or results from laws passed by legislation, created under statue

Answer 18

Statutory Lien

Question 19

What type of lien is a mechanic or vendor lien?

Answer 19

Statutory Lien

Question 20

Private, written contract showing intention to pledge property as security for debt.

Answer 20

Equitable Lien

Question 21

Property Tax
Special Assessment
Mechanics Lien
Lis Pendes

Answer 21

Specific
Statutory
Involuntary

Question 22

Federal Tax

Court Judgement

Answer 22

General
Statutory
Involuntary

Question 23

Vendor/Vendee Lien

Answer 23

Specific
Equitable
Involuntary

Question 24

Benefit from a proposed public improvement, would be voluntary if all affected property owners agreed to pay and petitioned local govt for public improvement

Answer 24

Special Assessment

Question 25

Imposed for non payment of federal estate tax, federal income tax, and payroll tax, and is attached to all real/personal property of debor

Answer 25

Federal Tax Lien

Question 26

Pledged as collateral for repayment of a debt

Answer 26

Mortgage Lien

Question 27

Filed by seller (vendor) against the property sold in the amount of any unpaid purchase price.

Answer 27

Vendor Lien

Question 28

Filed by Buyer in cases where the buyer has purchased property but not yet received title. Occurs when property is purchased under a contract for deed. If the seller does not or cannot deliver good title after all terms of contract are satisfied, then this would cover all $ paid for property, plus the value of any improvements made to property by buyer

Answer 28

Vendees Lien

Question 29

Filed against real property by laborers who supplied materials for/worked on improvements, repairs, maintenance of real property to enchance

Answer 29

Mechanics Lien

Question 30

Lien enforced when court issues a writ of execution directing sheriff to sieze/sell as much of the debtors real/personal property as necessary to pay debt and cover expenses of sale (comes from lawsuits)

Answer 30

Judgement Lien

Question 31

Lien resulting from a legal process involving seizure of a defendants real or personal property and holding custody as security while lawsuit decided. Collateral for lawsuits

Answer 31

Attachment Lien

Question 32

Pending lien that gives constructive notice that an action affecting particular property and may becomes involved in a lawsuit. Notice of possible future lien, and if successful dates back to when it was filed

Answer 32

Lis Pendens "Action Pending"

Question 33

What is an easement created by?

Answer 33

- Agreement - Adverse/hostile use - By condemnation proceedings

Question 34

True or False: Easements are routinely granted to utility, gas, and electric companies

Answer 34

TRUE

Question 35

What is not considered an interest in land, no writing needed, and can be revoked at anytime, and dies with new landowner?

Answer 35

License

Question 36

What are the 3 classifications of easements?

Answer 36

1. Easement Appurtenant 2. Personal Easement in Gross 3. Commercial Easement in Gross

Question 37

Gives the right of one landowner to use the property of adjoining landowner for specific purpose "RUN WITH THE LAND" Must have 2 adjoinging parcels of land owned by different parties

Answer 37

Easement Appurtenant

Question 38

TRUE OR FALSE: when either piece of property is sold, given away, or willed to heirs, easement app. does not remain in force and is affected

Answer 38

FALSE- remains the same

Question 39

Property right given to an individual and is non-assignable. Has a serviant estate, but no dominant estate bc this attaches to a person

Answer 39

Personal Easement in Gross

Question 40

Property right held by biz entity- telephone, electric, gas company. Attaches to utility company not a piece of property and NO dominant estate. Survives death or sale

Answer 40

Commercial Easement

Question 41

How are easements created?

Answer 41

G.R.EN.P 1. Express Grant Easement 2. Express Reservation 3. Easement of Necessity 4. Prescriptive Easement

Question 42

Which easement is created by landowner over his own land, should contain all formal elements of the deed, and does not transfer title?

Answer 42

Express Grant Easement

Question 43

When a landowner sells a portion of his property to another, but reserves an easement over the sold land by placing a reservation in the deed.

Answer 43

Express Reservation

Question 44

This easement is by operation of law, rather than an agreement. This arises when a piece of property is landlocked, and the owner must be afforded an easement to a road through an adjoining parcel.

Answer 44

Easement of Necessity

Question 45

Right acquired by an adverse user. Open and hostile

Answer 45

Prescriptive Easement

Question 46

Involves the right of use only, gained by adverse means.

Answer 46

Easement by Prescription

Question 47

How is an easement terminated?

Answer 47

1. Necessity of easement no longer exists 2. Dom and Servient estates merged 3. Easement owner (dom) releases serviant 4. Dominant estate abandoned 5. Serviant estate destroyed 6. Court terminates- quiet title

Question 48

Appurant easement runs with land, regardless of how many times the property is sold.

Answer 48

TRUE

Question 49

TRUE OR FALSE: Eminent domain is most often used to take title to property, but can also be used to create easement, public access.

Answer 49

TRUE

Question 50

Owner who has the right to use land is the one who benefits

Answer 50

Dominant Estate

Question 51

Owner whose land is being used is burdened and holds title

Answer 51

Servient Estate