Unit 5 Flashcards
Liens
If the owner defaults, the lien gives the creditor the right to force the sale of the property to satisfy the debt.
A recorded lien effectively reduces the owner’s equity in the property in an amount equal to the lien amount.
Effects on Title
if a property is being sold, all liens should be paid in full before the property transfers ownership.
if statutory law imposes an involuntary lien, the lien is a ___ _____.
statutory lien.
If court action imposes an involuntary lien, the lien is an ___ ____.
equitable lien.
A ____ lien is placed against real and personal property owned by a particular debtor.
general
A ___ lien attaches to a single item of real or personal property and does not affect other property owned by the debtor.
specific
___ receive first payment from the proceeds of a foreclosure
Superior liens
A lienor can change the priority of a junior lien by voluntarily agreeing to ____, or lower, the lien’s position in the hierarchy.
subordinate
All tax liens other than those for ad valorem, assessment, and estate tax are ____. They include:
junior liens ;
Federal income tax lien
State corporate income tax lien
State intangible tax lien
State corporation franchise tax lien
After paying the debt from the sale proceeds, the debtor may obtain a ___ __ ___ to clear the title records on other real property that remains unsold.
satisfaction of judgment
The creditor may obtain a writ of ___. The plaintiff creditor may secure a writ of ___.
execution ; attachment.
Homestead property and joint tenancy estates are ___ from judgment liens
exempt
A ____ secures a purchase money mortgage, a seller’s loan to a buyer to finance the sale of a property.
vendor’s lien
A ___ may be placed by a buyer when the seller has not delivered the title after all other terms of the contract have been satisfied.
vendee’s lien
A municipality may place a _____ against a resident’s real property for failure to pay utility bills.
utility lien
A _________ is recorded if the owner can prove that they have a net worth of at least twice the amount of the bail. Homestead property cannot be levied against for surety bail bond lien.
surety bail bond lien
If an employer owes back wages to an employee, a _____ can be set against all real and personal property of the employer.
wage lien
In which kind of easement is there a dominant tenement and a servient tenement?
An easement in gross
A commercial easement
A personal easement
An easement appurtenant
An easement appurtenant
Which of the following is NOT a legal property of liens?
Attaches to the property.
Terminates when payment is recorded.
Generally conveys an equitable interest.
Can only exist one at a time against the same property.
Can only exist one at a time against the same property.
Which of the following is true of easements in general?
They involve the property that contains the easement and a non-owning party.
They apply to a whole property, not to any specific portion of the property.
They cannot be assigned or transferred.
They may require a specific use, but cannot prohibit one.
They involve the property that contains the easement and a non-owning party.
Which is NOT a superior lien?
Special assessment lien
Real estate tax lien
Federal and state inheritance tax lien
Judgment lien
Judgment lien
Which of the following is an example of an easement by necessity?
A court grants a land-locked owner the right to use a neighbor’s driveway for access.
Two neighbors agree the build a fence and share ownership of the fence.
An owner invites a neighbor to use their swimming pool while the owner is away for the summer.
A person habitually parks his recreational vehicle on their neighbor’s yard because his own driveway is not large enough to hold it.
A court grants a land-locked owner the right to use a neighbor’s driveway for access.
How is a lien terminated?
Payment of the debt that is the subject of the lien and recording of the satisfaction
Which of the following statements about liens is FALSE?
There may be multiple liens against a property.
Liens always convey ownership.
An owner acquires existing liens along with the property.
A lien terminates once the debt is paid and satisfaction is recorded.
Liens always convey ownership.
An encumbrance is most broadly defined as
another’s interest in a real property that limits the interests of the freehold property owner.
How can a junior lien’s priority be changed?
A lienor can voluntarily agree to subordinate its lien to another lien.
Deed restrictions generally concern
a) the form of ownership in which a property may be held.
b)how long a property must be owned before it can be legally transferred.
c)what groups of people are legally excluded from future ownership of a property.
d)how a property may be used and what structures may be built on it.
how a property may be used and what structures may be built on it.
A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?
Real estate tax lien
What date is used to establish lien priority for a mechanic’s lien?
The date of beginning or ending the mechanic’s work, per state law
