Real Estate Taxes and Other Liens

Question 1

Lien

Answer 1

a charge or claim against a person’s property made to enforce the payment of money

Question 2

Encumbrance

Answer 2

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

Question 3

General Liens

Answer 3

affect all the property, both real and personal, of a debtor; attaches to real property at the moment it is filed and recorded / attaches to personal property when the property is seized

Question 4

Specific Liens

Answer 4

secured by specific property and affect only that particular property

Question 5

Vendor’s Lien

Answer 5

a lien belonging to the vendor (seller) for the unpaid purchase price of the property

Question 6

Voluntary Lien

Answer 6

created intentionally by the property owner’s action

Question 7

Involuntary Lien

Answer 7

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

Question 8

Statutory Lien

Answer 8

created by statute - exists without any action by the property owner

Question 9

Equitable Lien

Answer 9

arises out of common law; court ordered

Question 10

Subordination Agreements

Answer 10

written agreements between lienholders to change the priority of mortgage, judgement and other liens

Question 11

Ad Valorem

Answer 11

according to value; ie. taxes based on the value of the property being taxed

Question 12

Tax Sale

Answer 12

held according to a published notice after a court has rendered a judgment for overdue taxes; certificate of sale given to highest bidder when that bidder pays the delinquent tax amount in cash

Question 13

Statutory Right of Redemption

Answer 13

a period after the tax sale where the defaulted owner may redeem the property by paying the amount collected at the tax sale plus interest and charges

Question 14

Equitable Right of Redemption

Answer 14

before the tax sale; the property owner can redeem the property by paying the delinquent taxes plus fees

Question 15

Special Assessment

Answer 15

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

Question 16

Mortgage Lien

Answer 16

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

Question 17

Mechanic’s Lien

Answer 17

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

Question 18

Judgement

Answer 18

a decree issued by a court; when establishing a monetary amount - money judgement

Question 19

Writ of Execution

Answer 19

must be obtained by a creditor to enforce a judgement, directs sheriff to seize and sell property to pay off the debt and expenses of the sale

Question 20

Lis Pendens

Answer 20

notice of possible future lien; notifies prospective purchasers and lenders that there is a potential claim against the property

Question 21

Writ of Attachment

Answer 21

court order against the property of another person that directs the sheriff or other officer of the court to seize or take control of a property

Question 22

Estate & Inheritance Taxes

Answer 22

statutory, involuntary liens that encumber a deceased person’s real and personal property