RP UNIT15 Flashcards
What is a lien?
A charge or claim against property made to enforce the payment of money.
Define encumbrance in real estate.
Any charge or claim that attaches to real property, including liens and nonmonetary claims.
What are the types of liens?
Liens may be voluntary or involuntary, statutory or equitable, and general or specific.
When does a lien attach to real property?
A lien attaches to real property the moment it is filed and recorded.
When does a lien attach to personal property?
A lien does not attach to personal property until that property is seized.
What is a general lien?
A lien imposed on all property owned by a debtor, both real and personal.
List examples of general liens.
- Judgments
- Estate and inheritance taxes
- Debts of a deceased person
- Corporate franchise taxes
- IRS (income) taxes
What is a specific lien?
A lien imposed only on identified property, affecting only that particular property.
List examples of specific liens.
- Real estate tax liens
- Special assessment liens
- Mortgage liens
- Trust deed liens
- Mechanic’s liens
- Utility liens
- Bail bonds
- Vendor’s liens
What does it mean that a lien runs with the land?
The lien attaches to the property, not the property owner.
What is the priority of liens?
Refers to the order in which claims against the property will be satisfied.
Which liens typically take priority over others?
Liens for unpaid real estate taxes and special assessments.
How are general real estate taxes levied?
Levied by taxing bodies as a government power based on the value of the property.
What does ad valorem tax mean?
According to value.
What are exemptions from real estate taxes?
- Properties used for governmental purposes
- Various municipal organizations
- State and federal governments
- Religious and charitable organizations
- Hospitals
- Educational institutions
What is the equalization process in real estate taxation?
Used to achieve uniformity in property assessments.
What is the first step in arriving at tax rates?
A budget is adopted by the taxing body.
What happens if real estate taxes are delinquent?
Enforcement includes published notice, tax sale, penalties, and right of redemption.
What is a special assessment?
Local improvement district taxes typically spread out over years.
Define mortgage lien.
A voluntary, specific lien used in real estate financing.
What is a mechanic’s lien?
An involuntary, statutory, specific lien that gives security to those who improve real property.
What is a judgment lien?
An involuntary, equitable, general lien issued by a court.
What is a utility lien?
An involuntary, equitable, specific lien granted to municipalities for utility services.
What is a bail bond lien?
A voluntary, statutory, specific lien to assure the appearance of a defendant in a criminal action.
What is a corporate franchise tax lien?
An involuntary, statutory, general lien for taxes imposed on corporations.
What is an IRS tax lien?
An involuntary, statutory, general lien resulting from failure to pay federal tax liability.
