Real Estate Taxes and Other Liens

Question 1

voluntary lien

Answer 1

created intentionally by the property owner’s action, such as when someone takes out a mortgage loan.

Question 2

involuntary lien

Answer 2

not a matter of choice: It is created by law. It may be either statutory or equitable

Question 3

statutory lien

Answer 3

created by statute. A real estate tax lien, for example, is an involuntary, statutory lien. It is created by statute without any action by the property owner.

Question 4

equitable lien

Answer 4

arises out of common law. It is created by a court based on fairness. A court-ordered judgment that requires a debtor to pay the balance on a delinquent charge account, for instance, would be an involuntary, equitable lien on the debtor’s real estate.

Question 5

general liens

Answer 5

affect all the property, both real and personal, of a debtor. This includes judgments, estate and inheritance taxes decedent’s debts, corporate franchise taxes, and Internal Revenue Service taxes.

Question 6

specific liens

Answer 6

are secured by specific property and affect only that particular property.

Question 7

subordination agreements

Answer 7

written agreements between lien holders to change the priority of mortgage, judgment, and other liens.

Question 8

equitable right of redemption

Answer 8

delinquent taxpayer can redeem the property any time before the tax sale.

Question 9

statutory right of redemption

Answer 9

a period of redemption after the tax sale.

Question 10

local improvement district (LID)

Answer 10

A LID is a specific geographical area formed by a group of property owners working together to fund needed capital improvements.

Question 11

writ of execution

Answer 11

To enforce a judgment, the creditor must obtain a writ of execution from the court. A writ of execution directs the sheriff to seize and sell as much of the debtor’s property as is necessary to pay both the debt and the expenses of the sale.

Question 12

lis pendens

Answer 12

A lis pendens is not itself a lien, but rather notice of a possible future lien. Recording a lis pendens notifies prospective purchasers and lenders that there is a potential claim against the property.

Question 13

writ of attachment

Answer 13

A writ of attachment is a 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. By this writ, the court retains custody of the property until the suit concludes.