Real Estate Taxes and Other Liens Flashcards
a claim of a creditor or taxing authority against the real property of a debtor that is used as security to ensure repayment of the debt.
Lien
an encumbrance that transfers with it (runs with the land) and lessens its value or impairs its use because it binds all successive owners until paid and cleared.
Lien
If a debtor defaults in payment of a debt secured by property, the lienholder can
force sale or acquire title
affects all of a debtor’s property, both real and personal
general lien
affects only identified property
specific lien
determines the order in which claims will be satisfied (paid off).
Priority of liens
agreement between lienholders can be used to change the order of priority.
subordination agreement
taxes based on the value of the property taxed.
Ad valorem tax
conducted by county or township tax assessors or appraisers
property assessments
generally based on sales prices of comparable properties.
Assessed value
may be applied to correct inequalities in statewide tax assessments.
Equalization factor
collected through a tax sale following statutory notice requirements.
Delinquent taxes
the right of a mortgagor in law to redeem his or her property once the debt secured by the mortgage has been discharged.
equitable right of redemption
legal process that allows a delinquent mortgage borrower to reclaim their home or other property subject to foreclosure if they are able to repay their obligations in time.
statutory right of redemption
a surtax levied on property owners to pay for specific local infrastructure projects such as the construction or maintenance of roads or sewer lines. The tax is charged only to the owners of property in the neighborhood that will benefit from the project.
Special assessment
a voluntary lien given to a lender by a borrower as security for a real estate loan.
mortgage lien
has priority over other liens (except for tax liens)
mortgage lien
a specific, involuntary lien that gives a security interest in real property to persons or companies that perform labor or furnish material to improve the property.
mechanics lien
filed when an owner has not fully paid for work or the general contractor has been compensated but has not paid subcontractors or suppliers of materials.
mechanics lien
A property owner who did not order improvements that are being made should execute, post, and record a
notice of non responsibility
a decree issued by a court, is a general, involuntary, equitable lien on both real and personal property owned by a debtor and must be filed in every county in which the judgment debtor owns property.
judgment
can be sought from the court to authorize the sheriff to seize the property that the debtor may attempt to transfer.
writ of attachment
can be obtained from the court to enforce a judgment.
writ of execution
are general, statutory, involuntary liens that encumber a deceased person’s real and personal property and are normally paid or cleared in a probate proceeding.
Estate and inheritance tax liens
a specific, equitable, involuntary lien on the property of the owner who refuses to pay bills for municipal utility services.
lien for municipal utilities
a general, statutory, involuntary lien on real and personal property owned by the corporation.
corporation franchise tax lien
a general, statutory, involuntary lien on all real and personal property held by a delinquent taxpayer; it does not supersede previously recorded liens (which is also true of most state income tax liens).
IRS tax lien
Which of the following is classified as a general lien?
judgement
A buyer purchased a parcel of real estate. Title has passed, but to date the buyer has not paid the purchase price in full, as originally agreed. If the seller wants to force payment, which remedy is the seller entitled to seek?
Judgment
What directs a sheriff to seize and sell as much of a debtor’s property as necessary to pay for the debt and the expenses of the sale?
Writ of execution
What is another name for an IRS tax lien?
federal tax lien
A lien can be created in which four ways?
Voluntary, Involuntary, Statutory, Equitable
A town wants to construct new concrete curbs in a residential neighborhood. How will the town most likely raise the money necessary for the improvement?
special assessment
What is the difference between a general lien and a specific lien?
A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor’s property.
Which of these characteristics apply to a real estate tax lien?
Specific, involuntary lien
A property owner’s real estate tax bill is computed by applying the tax rate to
the assessed valuation of the property.
A mechanic’s lien is properly classified as
specific lien
To give notice of a potential claim against property and to establish priority, a creditor may file
lis pendens
An assessment equalization factor is used to achieve
uniformity.
A lien is an encumbrance, which means that it attaches to property and
transfers along with the property.
How might a jurisdiction raise or lower property assessments?
equalization factor
A mortgage becomes a lien on real property when
the lender records the financing documents.
A lien on real estate made to secure payment for a specific municipal improvement project is which of the following?
Special assessment lien
The right of a defaulted taxpayer to recover property before its sale for unpaid taxes is
the equitable right of redemption.
