Real Estate Taxes and Other Liens

Question 1

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.

Answer 1

Lien

Question 2

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.

Answer 2

Lien

Question 3

If a debtor defaults in payment of a debt secured by property, the lienholder can

Answer 3

force sale or acquire title

Question 4

affects all of a debtor’s property, both real and personal

Answer 4

general lien

Question 5

affects only identified property

Answer 5

specific lien

Question 6

determines the order in which claims will be satisfied (paid off).

Answer 6

Priority of liens

Question 7

agreement between lienholders can be used to change the order of priority.

Answer 7

subordination agreement

Question 8

taxes based on the value of the property taxed.

Answer 8

Ad valorem tax

Question 9

conducted by county or township tax assessors or appraisers

Answer 9

property assessments

Question 10

generally based on sales prices of comparable properties.

Answer 10

Assessed value

Question 11

may be applied to correct inequalities in statewide tax assessments.

Answer 11

Equalization factor

Question 12

collected through a tax sale following statutory notice requirements.

Answer 12

Delinquent taxes

Question 13

the right of a mortgagor in law to redeem his or her property once the debt secured by the mortgage has been discharged.

Answer 13

equitable right of redemption

Question 14

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.

Answer 14

statutory right of redemption

Question 15

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.

Answer 15

Special assessment

Question 16

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

Answer 16

mortgage lien

Question 17

has priority over other liens (except for tax liens)

Answer 17

mortgage lien

Question 18

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.

Answer 18

mechanics lien

Question 19

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.

Answer 19

mechanics lien

Question 20

A property owner who did not order improvements that are being made should execute, post, and record a

Answer 20

notice of non responsibility

Question 21

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.

Answer 21

judgment

Question 22

can be sought from the court to authorize the sheriff to seize the property that the debtor may attempt to transfer.

Answer 22

writ of attachment

Question 23

can be obtained from the court to enforce a judgment.

Answer 23

writ of execution

Question 24

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.

Answer 24

Estate and inheritance tax liens

Question 25

a specific, equitable, involuntary lien on the property of the owner who refuses to pay bills for municipal utility services.

Answer 25

lien for municipal utilities

Question 26

a general, statutory, involuntary lien on real and personal property owned by the corporation.

Answer 26

corporation franchise tax lien

Question 27

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).

Answer 27

IRS tax lien

Question 28

Which of the following is classified as a general lien?

Answer 28

judgement

Question 29

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?

Answer 29

Judgment

Question 30

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?

Answer 30

Writ of execution

Question 31

What is another name for an IRS tax lien?

Answer 31

federal tax lien

Question 32

A lien can be created in which four ways?

Answer 32

Voluntary, Involuntary, Statutory, Equitable

Question 33

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?

Answer 33

special assessment

Question 34

What is the difference between a general lien and a specific lien?

Answer 34

A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor’s property.

Question 35

Which of these characteristics apply to a real estate tax lien?

Answer 35

Specific, involuntary lien

Question 36

A property owner’s real estate tax bill is computed by applying the tax rate to

Answer 36

the assessed valuation of the property.

Question 37

A mechanic’s lien is properly classified as

Answer 37

specific lien

Question 38

To give notice of a potential claim against property and to establish priority, a creditor may file

Answer 38

lis pendens

Question 39

An assessment equalization factor is used to achieve

Answer 39

uniformity.

Question 40

A lien is an encumbrance, which means that it attaches to property and

Answer 40

transfers along with the property.

Question 41

How might a jurisdiction raise or lower property assessments?

Answer 41

equalization factor

Question 42

A mortgage becomes a lien on real property when

Answer 42

the lender records the financing documents.

Question 43

A lien on real estate made to secure payment for a specific municipal improvement project is which of the following?

Answer 43

Special assessment lien

Question 44

The right of a defaulted taxpayer to recover property before its sale for unpaid taxes is

Answer 44

the equitable right of redemption.