Unit 15

Question 1

Lien

Answer 1

A claim of a creditor or taxing authority against the real property of a debtor that is used as security to ensure repayment of debt. Is an encumbrance (runs with the land) and lessens its value or impairs its use because it binds all successive owners until paid and cleared

Question 2

If a debtor defaults in payment of a debt secured by property

Answer 2

The lienholder can force a sale, or acquire title

Question 3

Voluntary lien

Answer 3

Created by action of owner, such as a mortgage

Question 4

Involuntary

Answer 4

Created without the owner’s express permission. May also be statutory, if permitted by statute, or equitable if granted by a court

Question 5

General lien

Answer 5

Affects all of a debtor’s property, both real and personal

Question 6

Specific lien

Answer 6

Affects only identified property

Question 7

Priority of liens

Answer 7

Determines order in which claims will be satisfied (paid off). Generally first lien to be recorded will take priority, but real estate taxes and special assessments take priority over all liens.

Question 8

Subordination agreement

Answer 8

Change order of priority?

Question 9

Real Estate Taxes

Answer 9

AD VALOREM taxes based on value of the property taxed

Question 10

Assessed value

Answer 10

Based on sales prices of comparable properties

Question 11

Equalization factor

Answer 11

To correct inequalities in statewide tax assessments

Question 12

Mills

Answer 12

1/1000 of a dollar or $0.001

Question 13

Delinquent

Question 14

Equitable right of redemption

Question 15

Statutory right of redemption

Question 16

Special Assessments

Question 17

Mortgage Lien

Answer 17

Voluntary lien given to a lender by a borrower as security for a real estate loan

Question 18

Mechanic’s lien

Answer 18

Specific involuntary lien that gives a security interest in real property to persons or companies that perform labor or furnish material to improve the property. Filed when owner has not fully paid for work or the general contractor has been compensated but has not paid subcontractors or suppliers

Question 19

Notice of nonresponsibility

Question 20

Judgement

Answer 20

Decree issued by court, general and involuntary, equitable lien on both real and personal property owned by a debtor and must be filed in every county in which debtor owns property

Question 21

Lis Pendens

Answer 21

While a lawsuit is pending. Can be filed to give notice of an action pending relating to the title ot possesion of real property and establish priority of the claimant, and a writ of attachement can be sought from the court to authorize the sherif to seize the property if debtor may attempt to transfer

Question 22

Writ of execution

Question 23

Estate and Inheritance tax liens

Answer 23

General, statutory, involuntary liens that encumber a deceased person’s real and personal property and are normally paid or cleared in a probate proceeding

Question 24

Lien for municipal utilities

Answer 24

Specific, equitable, involuntary lien on property of the owner who refuses to pay bills for municipal utility services

Question 25

Corporation franchise tax liens

Answer 25

general, statutory, involuntary lien on real and personal property owned by the corporation