Unit 3

Question 1

Ad Valorem Tax

Answer 1

A tax levied according to value, generally used to refer to real estate tax.

Question 2

Assessment

Answer 2

(1) The imposition of a tax, charge, or levy, usually according to established rates. (2) Official valuation of property for the purpose of establishing assessed value for tax purposes.

Question 3

Deed Restricitions

Answer 3

Clause placed in a deed by the owner to control the future uses of the property. see restrictive covenants.

Question 4

Dominant Tenement

Answer 4

A property that includes in its ownership the appurtenant right to use an easement over another person’s adajcent property (called the servient tenement) for a specific purpose; ownership of the easement runs with the land.

Question 5

Easement

Answer 5

A right to limited use and enjoyment of the land of another for a specific purpose without ownerhsip; a nonpossessory interest in real estate. Two types of easements are easement appurtenant and easement in gross.

Question 6

Easement Appurtenant

Answer 6

An easement that runs with the land; the easement is part of both the dominant and the servient tracts and conveys with the title to either tenement.

Question 7

Easement Necessity

Answer 7

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; i.e., to allow a landlocked owner a right of ingress and egress over a grantor’s land.

Question 8

Easement Prescription

Answer 8

An easement acquired through adverse use of another’s property for a period of 20 or more years in North Carolina.

Question 9

Easement in gross

Answer 9

An easement that is not created for the beneift of any land owned by the owner of the easement but that attaches personally to the easement owener. There is no dominant tract; the easeement attaches to the servient tract. Personal easement in gross is not assignable; a commerical easement in gross is assignable.

Question 10

Encroachment

Answer 10

An unauthroized intrusion of an improvement, or any part of an improvement, on the real property of another party; can make title to both parcels unmarketable. Best discovered by survey.

Question 11

encumbrance

Answer 11

Any change, claim, lien, or liability held by someone other than the owner of the property that may diminish the value or use and enjoyment of a property. May not prevent the transfer of title.

Question 12

General Lien

Answer 12

The right of a creditor to have all of a debtor’s current and future property for the next 10 years - both real and personal- sold to satisfy a debt; i.e. judgment lien

Question 13

Judgment

Answer 13

The formal decision of a court upon the respective rights and claims of the parties to an action or a suit. After a judgment has been entered and recorded with the county recorder, it becomes a general invluntary lien on the current and future real and personal property of the debtor in the county where recorded for the next 10 years.

Question 14

License

Answer 14

(1) A privilege or right granted to a person by a state to operate as a real estate broker. (2) Ther personal revocable nontrasferable right to a temporary use of another’s land - a personal right that cannot be sold.

Question 15

Lien

Answer 15

A right given by law to certaion creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale. An encumbrance on real property that can be general or specific.

Question 16

Lien Agent

Answer 16

A title insurance entity that is designated under the North Carolina Mechanic’s Lien Law by a real property owner to receive notifications of possible mechanics’ liens from construciton project vendors.

Question 17

Lis Pendens

Answer 17

A recorded legal document giving constructive notice that an action potentially affecting title to a particular property has been filied in either a state or federal court; title is effectively unmarketable during the litigation.

Question 18

Machinery Act

Answer 18

The North Carolina General Statutes that govern the ad valorem taxation of property.

Question 19

Mass Appraisal

Answer 19

A valuation technique sometimes used for tax assessment purposes that applies a starndard precentage increase or decrease to all property in a given location; sometimes referred to as horizontal adjustments

Question 20

Mechanic’s lien

Answer 20

a specific, involuntary lien secured by interest in real property to give security to contractors, laborers, and materialman who have performed work or furnished materials in the erection or repair of a building.

Question 21

Mill

Answer 21

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

Question 22

Octennial reappraisal

Answer 22

In North Carolina, the statutory reappraisal of all real property in every county is every 8 years for tax purposes.

Question 23

Priority

Answer 23

The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded. Property tax and assessment liens have priority even over previously recorded liens.

Question 24

Servient tenement

Answer 24

Land on which an easement exists in favor of an adjacent property (called the dominant tenement); also called a servient estate or tract. Easement runs with the land.

Question 25

Special assessment

Answer 25

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 26

Specific Lien

Answer 26

A lien affecting or attaching only to a specific parcel of land or piece of real property; i.e. a mortgage lien

Question 27

Tax Lien

Answer 27

A statutory lien against real property for nonpayment of taxes. Real and personal property tax liens and assessements take priority over all other liens. REal property tax and assessment liens are specific liens; personal property tax liens are general liens.

Question 28

Writ of attachement

Answer 28

At the request of a creditor, the court retains custody of the unsecured property during the lawsuit to ensure that the property remains available to satisfy a judgment ordered as resolution of the suit by the court. A recorded writ is an encumbrane on the property.

Question 29

Writ of Execution

Answer 29

A court order directing the County sheriff to sell a defendant’s property as required by judgment or court decree.