Unit 13: Real Estate Taxes and Other Liens

Question 1

ad valorem tax

Answer 1

a tax levied according to value, generally used to refer to real estate tax. Also called the general tax

Question 2

assessment equalization factor

Answer 2

A factory (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with state-wide tax assessments. The ad valorem tax would be based on this adjusted value. An equalization factor may be applied to raise or lower assessments in a particular district or county.

Question 3

equitable lien

Answer 3

also known as a statutory lien. A statutory lien is a lien imposed on property by statute - a tax lien, for example - in contrast to an equitable lien which arises out of common law

Question 4

equitable right of redemption

Answer 4

the right of a defaulted property owner to recover the property before its sale by paying the appropriate fees and charges

Question 5

estate tax

Answer 5

federal tax on a decedent’s real and personal property.

Question 6

general lien

Answer 6

the right of a creditor to have all of a debtor’s property - both real and personal - sold to satisfy a debt.

Question 7

general real estate tax

Answer 7

a tax that is made up of the taxes levied on the real estate by government agencies and municipalities.

Question 8

inheritance tax

Answer 8

state-imposed taxes on a decedent’s real and personal property.

Question 9

involuntary lien

Answer 9

a lien placed on property without the consent of the property owner.

Question 10

judgment

Answer 10

the formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant.

Question 11

junior lien

Answer 11

an obligation, such as a second mortgage, that is subordinate in right or lien priority to an existing lien on the same property.

Question 12

lien

Answer 12

a right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.

Question 13

mechanic’s lien

Answer 13

a statutory lien created in favor of contractors, laborers, material suppliers, and others who have performed work or furnished materials in the erection or repair of a building

Question 14

mill

Answer 14

one-tenth of one cent. Some states use a mill rate to compute real estate taxes; for example, a rate of 52 mills would indicate a tax of $0.052 for each dollar of assessed valuation of a property.

Question 15

mortgage lien

Answer 15

a lien or charge on the property of a mortgagor that secures the underlying debt obligation.

Question 16

special assessment

Question 17

specific lien

Answer 17

a lien affecting or attaching only to a certain, identified parcel of land or piece of property.

Question 18

statutory lien

Answer 18

a lien imposed on property by statute- a tax lien, for example - in contract to an equitable lien which arrises out of common law

Question 19

statutory right of redemption

Answer 19

the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.

Question 20

subordination agreement

Answer 20

a written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.

Question 21

tax lien

Answer 21

a charge against property, created by operation of law. Tax liens and assessments take priority over all other liens.

Question 22

tax sale

Answer 22

A court-ordered sale of real property to raise money to cover delinquent taxes.

Question 23

vendor’s lien

Answer 23

a lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has not taken any other lien or security beyond the personal obligation of the purchaser.

Question 24

voluntary lien

Answer 24

a lien placed on property with the knowledge and consent of the property owner.

Question 25

writ of attachment

Answer 25

a document ordered by the court to have a sheriff enter a leased property to give possession back to the owner.