Module 3 - Taxes, liens, and distressed property

Question 1

lien

Answer 1

a right given by law to certain creditors to have their debt paid out of the property of a defaulting debtor, usually by means of a court sale.

Question 2

appurtenant easement

Answer 2

an easement that passes with the land when conveyed. This is a pure easement and it requires two adjoining parcels of land: a dominant tenement, which benefits from the easement, and a servient tenement over which the easement runs.

Question 3

condemnation

Answer 3

a judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.

Question 4

easement

Answer 4

A right to use the land of another for a specific purpose. It is not ah estate in land; it is an incorporeal interest in land (a nonpossessory interest.)

Question 5

eminent domain

Answer 5

the right of a government or quasi-public body to acquire property for public use through a court called action called condemnation

Question 6

encumbrance

Answer 6

anything (such as a mortgage, tax, or judgement lien, an easement, a restriction on the use of the land, or an outstanding dower right) that may diminish the value or use and enjoyment of a property.

Question 7

encroachment

Answer 7

a building or some portion of it - a wall or fence, for instance - that extends beyond the land of the owner and illegally intrudes upon some land of an adjoining owner.

Question 8

assessment

Answer 8

the imposition of a tax, charge, or levy, usually according to established rates.

Question 9

involuntary lien

Answer 9

a lien that is imposed on property without the owner’s permission, such as those instituted by court order or tax liens. (contrast with voluntary lien.)

Question 10

police power

Answer 10

the government’s right to impose laws, statutes and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.

Question 11

judgment

Answer 11

the formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant

Question 12

ad valorem tax

Answer 12

a tax levied according to value; usually refers to general real estate taxes; also called a general tax

Question 13

assessment roll

Answer 13

spreading an assessment over the various parcels of real estate that are within a taxing body’s jurisdiction

Question 14

attachment

Answer 14

the act of taking a person’s property into legal custody by writ or other judicial order to hold it available for application to that person’s debt to a creditor

Question 15

deed restriction

Answer 15

a limitation on future use of property, placed there by the seller.

Question 16

bail bond

Answer 16

a voluntary specific lien placed against a parcel of real estate to serve as security for a court appearance.

Question 17

deed-in-lieu

Answer 17

a deed given by the mortgagee when the mortgager is in default under the terms of the mortgage. This is a way for the mortgager to avoid foreclosure.

Question 18

deficiency judgment

Answer 18

a personal judgment levied against the mortgagor when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.

Question 19

corporation franchise tax

Answer 19

a tax on corporations levied by the states as a condition of allowing them to do business in the states.

Question 20

easement by condemnation

Answer 20

an easement acquired by a public body through the power of eminent domain; just compensation must be paid to the owner of the servient tenement for such acquisition.

Question 21

easement by necessity

Answer 21

an easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, an easement of ingress and egress

Question 22

easement by prescription

Answer 22

an easement acquired by the continuous, open, uninterrupted, exclusive and adverse use of the property for the period of time prescribed by state law.

Question 23

easement in gross

Answer 23

an easement that is not created for the benefit of any land owned by the owner of the easement, but which attaches personally to the easement owner.

Question 24

equalization factor

Answer 24

the figure set by local taxing bodies whereby assessed values of property for tax purposes in a particular county or taxing district may be raised or lowered to make them equal to assessments in other counties or districts

Question 25

equitable lien

Answer 25

a lien imposed on property that arises out of common law and that may be created by a court when justice and fairness require it. For example, a judgement against the property’s owner may result in a lien on the property. (Contrast with statutory lien.)

Question 26

Estate taxes

Answer 26

federal taxes on deceased persons’ real and personal property, levied when such property passes to deceased persons’ heirs.

Question 27

foreclosure

Answer 27

a legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of a default on payment of the mortgage note or other terms in the mortgage document.

Question 28

equitable right of redemption

Answer 28

after default but before the foreclosure sale, the borrower or any other person who has an interest in the real estate pays the lender the amount currently due, plus costs, and the debt will be reinstated.

Question 29

general lien

Answer 29

the lien right of a creditor that attaches to all of a debtor’s property, both real and personal.

Question 30

general real estate tax

Answer 30

a tax that is made up of the taxes levied on the real estate by government agencies and municipalities

Question 31

inheritance taxes

Answer 31

state taxes on deceased persons’ real and personal property, levied when such property passes to deceased persons’ heirs.

Question 32

internal revenue service tax lien

Answer 32

a lien on property by the internal revenue service resulting from a person’s failure to pay any portion of his/her federal income taxes.

Question 33

judgment lien

Answer 33

lien placed after the formal decision of a court upon the respective rights and claims of the parties to an action or suit.

Question 34

local improvement district

Answer 34

an assessment (i.e., tax) on a local improvement district for a public improvement project the district has approved.

Question 35

Mechanic’s lien

Answer 35

A statutory lien created in favor of contractors, material suppliers and laborers who have performed work or furnished materials in the erection or repair of a building.

Question 36

mill

Answer 36

one-tenth of one cent; used by some states to compute real estate taxes

Question 37

Mortgage lien

Answer 37

a lien on real estate created by a mortgage borrower as security for payment of the debt

Question 38

redemption

Answer 38

the buying back of real estate sold at either a foreclosure or tax sale; the owner of the property enjoys the right of redemption

Question 39

special assessment

Answer 39

a tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement, such as a street or sewer.

Question 40

Specific lien

Answer 40

A lien affecting or attaching only to a certain, specific parcel of land or piece of property.

Question 41

Statutory lien

Answer 41

A lien imposed on property by statute - a tax lien, for example. (contrast with equitable lien.)

Question 42

Tax lien