Unit 3: Encumbrances on Real Property

Question 1

a tax levied according to value (example: real estate tax)

Answer 1

ad valorem taxes

Question 2

the imposition of a tax, charge, or levy usually according to established rates (used to value property for tax purposes)

Answer 2

assessment

Question 3

clause placed in a deed by the owner to control the future uses of the property

Answer 3

deed restrictions

Question 4

a property that includes in its ownership the appurtenant right to use an easement over another person’s adjacent property (also called servient tenement)

Answer 4

dominant tenement

Question 5

a right to limited use and enjoyment of the land of another for a specific purpose without ownership; a nonpossessory interest in real estate

Answer 5

easement

Question 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

Answer 6

easement by appurtenant

Question 7

an easement allowed by law as necessary for the full enjoyment of a parcel of real estate

Answer 7

easement by necessity

Question 8

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

Answer 8

easement by prescription

Question 9

an easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner

Answer 9

easement in gross

Question 10

an unauthorized intrusion of an improvement, or any part of an improvement, on the real property of another party; can make title to both parcels (lots) unmarketable

Answer 10

encroachment

Question 11

any charge, claim, lien, or liability held by someone other than the owner of property that may diminish the value or use and enjoyment of a property

Answer 11

encumbrance

Question 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

Answer 12

general lien

Question 13

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

Answer 13

judgement

Question 14

(1) a privilege or right granted to a person by a state to operate as a real estate broker (2)the personal revocable nontransferable right to a temporary use of another’s land

Answer 14

license (definition)

Question 15

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 (type of encumbrance on real property)

Answer 15

lien

Question 16

a title insurance entity that is designated under the NC Mechanic’s Lien Law by a real property owner to receive notification of possible mechanics’ liens from construction project vendors

Answer 16

lien agent

Question 17

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

Answer 17

lis pendens

Question 18

The NC General Statutes that govern the ad valorem taxation of property

Answer 18

Machinery Act

Question 19

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

Answer 19

mass appraisal

Question 20

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

Answer 20

mechanic’s lien

Question 21

one=tenth of one cent (used to calculate real estate taxes in some states, not NC)

Answer 21

mill

Question 22

In NC, the statutory reappraisal of all real property in every county every eight years for tax purposes

Answer 22

octennial reappraisal

Question 23

the order of position or time

Answer 23

priority

Question 24

land on which an easement exists in favor of a adjacent property (also called dominate tenement)

Answer 24

sevient tenement

Question 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

Answer 25

special assessments

Question 26

a lien affecting or attaching only to a specific parcel of land or piece of real property (example: mortgage lien)

Answer 26

specific lien

Question 27

a statutory lien against real property for nonpayment of taxes

Answer 27

tax lien

Question 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 encumbrance on the property)

Answer 28

writ of attachment

Question 29

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

Answer 29

writ of execution