Unit 10 - Real Estate Taxes and Other Liens Flashcards
Define a Lien
A charge or claim against property made to enforce payment
What are the types of lien?
Voluntary
Involuntary
General
Specific
Define a voluntary lien?
A mortgage
Define an involuntary lien?
A lien created by law or court, mechanics lien.
Define a Statutory Lien
A lien created by statute
Define an Equitable Lien
A lien created by court to ensure payment
Define a General Lien
A lien which affects real and personal property
Define a Specific Lien
A lien secured by specific property & affect particular property
Which liens take priority?
Real estate and special assessments take priority. Followed by mechanics liens
Define a Subordination Agreement
Allows a holder of a newer lien to move ahead of an older lien
Define General Real Estate Taxes
Also called Ad Valorem taxes, based on the value of property, and pay for a wide range of government services and programs
Who is exempt from property taxes?
Schools, churches, governments
Define a homestead exemption
A legal regime to protect the value of the homes of residents from property taxes and creditors
Define an Assessment
An official evaluation process, based on sales price of comparable properties
What percentage is real property assessed at?
33 1/2%
How are real estate taxes calculated?
Tax Rate x Adjusted Assessed Value
Define Equalization
Is used to correct inequalities in state wide tax assessments, which is adjusted annually
What does a government Budget cover?
Covers the financial requirements of the taxing body for the fiscal year
Define Appropriation
Involves adoption of an ordinance/law authorized expenditure of funds
Define Special Assessments
Taxes on real estate to fund public improvements
Define Special Services Areas
Special taxing districts issued to pay for infrastructure
When do liens expire?
2 years after completion, suits to enforce lien must be filed within 2 years
