Key Terms Unit 15

Question 1

A tax levied according to value, generally used to refer real estate general tax.

Answer 1

ad valorem tax

Question 2

This is applied to raise or lower assessments in a particular district or county. The assessed value is multiplied by the equalization factor, and then the tax rate is applied.

Answer 2

assessment equalization factor

Question 3

a ____ arises out of common law. A court-ordered judgement that requires a debtor to pay the balance on a delinquent charge account, and which can be filed in the county where the debtor owns property.

Answer 3

equitable lien

Question 4

The delinquent taxpayer may redeem the property any time BEFORE the tax sale.

Answer 4

equitable right of redemption

Question 5

General, statutory, involuntary liens that encumber a deceased persons real and personal property and are normally paid or cleared in a probate proceeding.

Answer 5

estate tax

Question 6

___ affect ALL the property both real and personal, of a debtor.

Answer 6

general lien

Question 7

A tax that is made up of the taxes levied on the real estate by government agencies.

Answer 7

general real estate tax

Question 8

General, statutory, involuntary liens that encumber a deceased persons real and personal property and are normally paid or cleared in a probate proceeding.

Answer 8

inheritance tax or estate tax

Question 9

___ is not a matter of choice; it is created by law and may be either statutory or equitable.

Answer 9

involuntary lien

Question 10

A decree issued by a court. Generally involuntary, equitable lien on both real and personal property owned by the debtor.

Answer 10

judgement

Question 11

A lien that comes after an earlier lien on the same property.

Answer 11

junior lien

Question 12

A charge or a claims against a person’s property made to enforce the payment of money. It is an encumbrance (any charge or claim that attaches to real property) on the owners title. A ___ attaches to real property at the moment it is filed and recorded. In contrast, a ___ does not attach to personal property until it is seized.

Answer 12

lien

Question 13

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

Answer 13

mechanic’s lien

Question 14

One-tenth of one cent. Some states use a ___ rate to compute real estate taxes.

Answer 14

mill

Question 15

A specific voluntary lien on real estate given to a lender by a borrower as security for real estate loan.

Answer 15

mortgage lien

Question 16

A tax charged on real estate to fund public improvements to the property, and it creates a lien for the amount of the assessment on the property.

Answer 16

special assessment

Question 17

___ are secured by specific property and affect only that particular property. They include vendor liens, mechanics liens, mortgage liens, real estate tax liens, and liens for special assessment and utilities.

Answer 17

specific lien

Question 18

A ___ is created by statue.

Answer 18

statutory lien

Question 19

The defaulted owner may redeem the property by paying the amount collected AT THE tax sale plus interest and charges.

Answer 19

statutory right of redemption

Question 20

____ are written agreements between lien-holders to change priority of liens, The holder of the superior lien agrees to permit a later lien-holders interest to take precedence.

Answer 20

subordination agreement

Question 21

A ____ is an involuntary, statutory lien.

Answer 21

tax lien

Question 22

Real estate taxes that have been delinquent for the statutory period of time can be collected through a ____.

Answer 22

tax sale

Question 23

A lien belonging to the seller for the unpaid purchase price of the property. Usually found in owner financing to sell property.

Answer 23

vendor’s lien

Question 24

_____ is created intentionally by the property owner’s action, such as when someone take out a mortgage.

Answer 24

voluntary lien

Question 25

A court order against the property of another person that directs the sheriff to seize the property. By this writ the court retains custody of the property until the suit concludes,

Answer 25

writ of attachment