UNIT 15 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 general tax.

Question 2

ASSESSMENT EQUALIZATION FACTOR

Answer 2

A factor by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide 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 RIGHT OF REDEMPTION

Answer 3

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

Question 4

ESTATE TAX

Answer 4

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

Question 5

GENERAL LIEN

Answer 5

The right of a creditor to have all of a debtor’s property (real and personal) sold to satisfy a debt.

Question 6

GENERAL REAL ESTATE TAX

Answer 6

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

Question 7

INHERITANCE TAX

Answer 7

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

Question 8

INVOLUNTARY LIEN

Answer 8

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

Question 9

JUDGMENT

Answer 9

The formal decision of a court upon the respective rights and claims of the parties to an action or suit.

Question 10

JUNIOR LIEN

Answer 10

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

Question 11

LIEN

Answer 11

A claim of a creditor or taxing authority against the real property of a debtor that is used as security to ensure repayment of a debt.

Question 12

MECHANIC’S LIEN

Answer 12

A 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.

Question 13

MILL

Answer 13

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

Question 14

MORTGAGE LIEN

Answer 14

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

Question 15

SPECIAL ASSESSMENT

Answer 15

A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a street or sewer.

Question 16

SPECIFIC LIEN

Answer 16

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

Question 17

STATUTORY LIEN

Answer 17

A lien imposed on property by statute - a tax lien. In contrast to an equitable lien, which arises out of common law.

Question 18

STATUTORY RIGHT OF REDEMPTION

Answer 18

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

Question 19

SUBORDINATION AGREEMENT

Answer 19

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

Question 20

TAX LIEN

Answer 20

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

Question 21

TAX SALE

Answer 21

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

Question 22

VENDOR’S LIEN

Answer 22

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 23

WRIT OF ATTACHMENT

Answer 23

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