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Unit 10: Real Estate Taxes and Other Liens > Key terms > Flashcards

Key terms Flashcards

1
Q

A charge or claim against property that is made to enforce the payment of money

A

Lien

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2
Q

Security is also called ___.

A

Collateral

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3
Q

something of value that the homeowner promises to give the lender if the borrower fails to repay the debt

A

collateral

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4
Q

something of value given to secure repayment of debt

A

Collateral

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5
Q

Any charge or claim that attaches to real property and lessens its value or impairs its use

A

encumbrance

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6
Q

Encumbrances are attached to property and therefore ___ along with it.

A

transfer

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7
Q

Type of lien that is created intentionally by the property owner’s action

A

Voluntary

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8
Q

A mortgage loan is an example of what type of lien?

A

voluntary

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9
Q

What type of lien is not created by choice, but instead created in a court of law and is either statutory or equitable?

A

Involuntary

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10
Q

What type of lien is created by statute?

A

Statutory

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11
Q

Real estate taxes are examples of what types of liens?

A

Involuntary & statutory

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12
Q

What type of lien is created by a court to ensure the payment of a judgment as well as by agreement?

A

Equitable

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13
Q

What type of lien affects all the property (both real and personal) of a debtor?

A

General

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14
Q

Judgments, estate and inheritance taxes, decedents debts, corporate franchise taxes, and IRS taxes are all ___ liens.

A

general

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15
Q

When does a lien attach to real property?

A

The moment it is filed

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16
Q

When does a lien attach to personal property?

A

When levied on or seized by a sheriff

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17
Q

What type of lien is secured by a certain property and affects only that particular property?

A

Specific

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18
Q

Mechanic’s liens, mortgage liens, real estate tax liens, and liens for special assessments and utilities are all ___ liens.

A

specific

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19
Q

What type of lien can secure personal property, such as when placed on a car to secure payment of a car loan?

A

Specific

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20
Q

Written agreements between lienholders to change the priority of mortgage, judgment, and other liens.

A

Subordination agreements

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21
Q

Under a(n) ___, the holder of a superior or prior lien agrees to permit a junior lienholder’s interest to move ahead of her lien.

A

Subordination agreement

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22
Q

A charge against property created by operation of law

A

Tax lien

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23
Q

___ are based on the value of the property being taxed.

A

General real estate taxes

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24
Q

General real estate taxes are also called ___ taxes.

A

Ad valoreum

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25
Q

General real estate taxes are ___, ___, and ___ lliens.

A

Specific, involuntary, statutory

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26
Q

___ are a favored source of revenue for local governments because real estate cannot be hidden and is relatively easy to value.

A

Real estate property taxes

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27
Q

Real estate is valued for tax purposes by county or township appraisers. This official valuation process is called ___.

A

Assessment

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28
Q

A property’s ___ generally is based on the sales prices of comparable properties

A

Assessed values

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29
Q

In Cook County, real property is assessed based on a ___ of percentages of ___.

A

Sliding scale
Fair market value

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30
Q

In Cook County, real property is assessed based on a sliding scale
of percentages of fair market value ranging between ___% to ___%.

A

10% to 25%

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31
Q

In all Illinois counties except for cook, real property is assessed at ___/___% of fair market value.

A

331/3%

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32
Q

In some jurisdictions, when it is necessary to correct inequalities in statewide tax assessments, a(n) ___ factor is used to achieve uniformity

A

Equalization

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33
Q

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments.

A

Equalization factor

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34
Q

The ad valorem tax is based on what value?

A

Equalization factor

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35
Q

A(n) ___ may be applied to raise or lower assessments in a particular district or county.

A

Equalization factor

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36
Q

The basic assessed value of each property in the area is multiplied by the equalization factor to acquire a(n)
___.

A

Equalized assessment

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37
Q

Tax rates are expressed in which 2 ways?

A

1) Dollars
2) Milage (mills)

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38
Q

Mills is another word for ___

A

milage

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39
Q

Quadrennial basis

A

4-year basis

40
Q

Triennial basis

A

3-year basis

41
Q

Formal ___ is the way a taxing body actually authorizes the expenditure of funds and provides for the sources of funding.

A

Appropriation

42
Q

The formal action taken to impose the tax, usually by a way of vote of the taxing district’s governing body

A

Tax levy

43
Q

In Illinois, tax payment due dates are also called ___ dates.

A

penalty

44
Q

If a person is late on their property taxes in Illinois after the penalty date, what is the penalty?

A

1.5% per month added to any unpaid amount

45
Q

Real estate taxes that have remained delinquent for the statutory period can be collected through…

A

a tax sale

46
Q

A court ordered sale of real property to raise money to cover delinquent taxes

A

Tax sale

47
Q

An instrument given to a purchaser after the expiration of redemption rights

A

Tax deed

48
Q

Tax deeds must be recorded within ___ after the expiration of redemption period or else it is void with no right of reimbursement.

A

1 year

49
Q

Special assessments are also called ___.

A

Improvement taxes

50
Q

Taxes levied on real estate to fund public improvements to the property

A

Special assessments

51
Q

Who is required to pay special assessments?

A

Property owners living nearest to the improvement

52
Q

Special assessments are always ___ and ___.

A

Specific
Statutory

53
Q

Special assessments can either be ___ or ___.

A

Involuntary
voluntary

54
Q

In a voluntary special assessment, the share is determined either on a(n) ___ basis or on a(n) ___ basis.

A

Fractional or cost-per-front-foot basis

55
Q

___ refers to wider lots incurring greater cost of special assessments than narrow lots for street paving and curb & sidewalk installation

A

cost-per-front-foot basis

56
Q

___ refers to an equally divided share in cost of special assessments.

A

Fractional basis

57
Q

A(n) ___ is also called a deed of trust lien

A

mortgage lien

58
Q

A voluntary lien on real estate given to a lender by a homeowner as security for a real estate loan

A

Mortgage lien

59
Q

A specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property

A

Mechanics’ lien

60
Q

In Illinois, mechanic’s liens are ___ in addition to being specific & involuntary.

A

Statutory

61
Q

In order to be entitled to a mechanic’s lien, the person who did the work must have a(n) ___ with the owner or owner’s authorized representative.

A

contract

62
Q

Mechanic’s liens take priority over a previously recorded lien if…

A

the work done has enhanced the value of the property

63
Q

___ are collected by the landowner from each contractor and subcontractor to create a continuing record that all lien claimants have released their lien rights

A

Lien waivers

64
Q

An order issued by a court that settles and defines the rights and obligations of the parties to a lawsuit

A

judgment

65
Q

When a judgment establishes the amount a debtor owes and provides for money to be awarded, it is called a(n) ___.

A

money judgment

66
Q

judgments are ___, ___, and ___ liens on real and personal property owned by the debtor.

A

general, involuntary, and equitable

67
Q

When does a judgment become a general lien on all of the dependent’s real and personal property?

A

Time the judgment is recorded

68
Q

For a lien to be effective in another county, a(n) ___ of judgment must be recorded in that county.

A

Memorandum

69
Q

How long are judgment liens effective for in Illinois?

A

7 years

70
Q

To enforce a judgement, the creditor must obtain a(n) ___ from the court

A

Writ of execution

71
Q

A(n) ___ directs the sheriff to seize and sell as much of the debtor’s property as is necessary to pay both the debt and expenses of the sale.

A

Writ of execution

72
Q

When property is sold after a judgment, the debtor should demand a(n) ___ to clear the record.

A

Satisfaction of judgment

73
Q

When any suit is filed that affects title to real estate, a(n) ___ is recorded.

A

Lis pendens

74
Q

A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or federal court

A

Lis pendens

75
Q

A lis pendens is a lien. True or false?

A

False

76
Q

A(n) ___ is a notice of a possible future lien

A

Lis pendens

77
Q

Recording a(n) ___ notifies prospective purchasers and lenders that there is a potential claim against the property.

A

Lis pendens

78
Q

To prevent a debtor from conveying title to such previously unsecured real estate while a court suit is being decided, a creditor may seek a(n) ___.

A

Writ of attachment

79
Q

Prevents a debtor from conveying a title to previously unsecured real estate while a court suit is being decided

A

Writ of attachment

80
Q

Through ___, the court retains custody of the property until the suit concludes.

A

Writ of attachment

81
Q

Federal taxes on a decedents real & personal property

A

Federal estate taxes

82
Q

State-imposed taxes on a decedents real & personal property

A

Inheritance taxes

83
Q

A real estate owner who is charged with a crime for which he or she must face trial may post bail in the form of real estate rather than cash. This is what type of lien?

A

bail bond lien

84
Q

Type of lien that results from a person’s failure to pay any portion of federal taxes, such as income and withholding taxes.

A

Federal tax lien

85
Q

The ___ permits commercial sponsoring brokers to place a lien on property in the amount of the commission they are entitled to receive for leasing, as well as for a sale under a written brogerage agreement in the event they are not paid for their services.

A

Commercial Real Estate Broker Lien Act

86
Q

Claims of creditors or taxing authorities against the real and personal property of a debtor

A

Liens

87
Q

___ liens arise from action of the debtor

A

Voluntary

88
Q

___ liens are created by statute or based on the concept of fairness.

A

Involuntary

89
Q

How often are real estate taxes levied?

A

Annually

90
Q

___ protects property owners when debts have been paid

A

Lien waivers

91
Q

Liens for water charges or other municipal utilities are an example of ___ liens.

A

Specific

92
Q

Bail bond liens are ___ liens.

A

Specific

93
Q

The basic homeowner exemption must be applied for how frequently?

A

Yearly

94
Q

The senior citizen homestead exemption renews ___.

A

automatically

95
Q

The home improvement exemption gives any homeowner improving their home a(n) ___ delay before the increased home value affects taxes.

A

4 year

96
Q

Mechanic’s liens must be filed within ___ after work was completed.

A

four months

Unit 10: Real Estate Taxes and Other Liens (2 decks)

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