Unit 5: Encumbrances Flashcards
A cloud on the title is:
A possible impediment to a property sale.
A mechanic’s lien can be filed by:
A laborer
Which is NOT a mechanic
An apartment lessor
A mechanic is:
Anyone who performs such work or furnishes the material used in the work: Labor Services Material Equipment
When required, a preliminary notice of right to file a mechanic’s lien should be given:
Within 20 days of the starting time.
A notice of cessation is appropriate
When the work has been stopped for 30 days
Mechanic’s Lien
Used to help secure payment for any labor, service, equipment, or materials used in the construction of improvements to real estate.
A notice of completion should be filed within:
10 days after completion of the work of improvement
Generally, the action to enforce a mechanic’s lien claim must be filed within how many days after the lien is recorded?
90 Days
If unauthorized work is being done, a property owner can:
File a notice of nonresponsibility
Liens and judgments are:
Encumbrances
The sheriff is directed to sell the property by:
Writ of execution
The right to use adjacent land to go to and from a roadway is
An easement
Betty’s property includes an easement over Al’s land. Al’s property is:
The Servient Tenement
Betty’s property includes an easement over Al’s land. Betty’s property is:
The Dominant Tenement (The land benefited by the easement)
Easement in gross
A personal right to use land. The right belongs to an individual and is not appurtenant to any ownership interest in the land.
George does not own any land but has an easement over Al’s and Betty’s property to go down to the river. George has:
Easement in gross
Marilyn’s 40-acre tract, purchased from Alan, is landlocked, with means that she:
Can get an easement by necessity over Alan’s adjoining parcel.
Ways to Terminate an easement:
(ADAM E LEE) Abandonment Destruction Adverse Possession Merger Express Agreement Lawsuit Estoppel Excessive use
The maximum homestead exemption may be claimed by a homeowner who is:
Older than 65 years of age
A family unit is:
Defined by law
The homestead exemption for a single person is at least
$75,000
The homestead exemption for a homeowner who is a member of a family unit is at least:
$100,000
Encumbrance
Burden on title
Lien
Money Encumbrance
Specific Lien
Lien that only applies to one parcel
General Lien
Applies to all property of the debtor
Voluntary Lien
One agreed to by the property owner
Involuntary Lien
One that is imposed without the agreement of a property owner.
- Real Property Taxes,
- State Income and Estate Taxes, or
- Federal Income, gift, and estate taxes.
What type of lien is a mechanics’ lien
Specific and involuntary
Payment Bond
Insurance for the job. A way to guard against possible claims is to require the contractor to obtain a Payment Bond.
Notice of nonresponsibility
Notice from the owner to the contractor saying that the owner is not responsible for nonpayment. For example, if work is done for a tenant of a mall shop and the service provider is laying tile.
Lien Priority
the order in which claimants are paid in the event of a default.
Lien priority is determined by:
Date and time recordation
What is always first in the lien priority
Property Taxes
Mechanics Lien’s place in line is
When the work started
What type of lien is a judgment
General & Involuntary
What type of lien is an attachment
General & Involuntary
Ingress and Egress rights are:
An easement
Easement by prescription
NACHO Notorious Adverse Continuous- for 5 years Hostile Open
Difference between License to use land and an Easement
A license is revocable
An easement is not revocable
Estoppel
You are stopped from denying something
CC&R
Covenants, Conditions, and Restrictions
Covenant
A covenant (weaker than condition) is a promise
- To do something or
- To refrain from doing something.
Condition
A remedy for a breach of condition is forfeiture of land, a much harsher result than the money damages or injunction that can follow the breach of a covenant.
Restraint on Alienation
A condition cannot impose a restraint on alienation. Restraint on alienation is any condition that prohibits a property owner from transferring title to the property.
Deed Restrictions
Prohibition against a property use that is imposed in the grantee’s deed. HOAs frequently make use of deed restrictions.
Zoning
An act of city or county government that specifies the possible uses of property in a defined area.
Private Controls over Real Estate
CC&Rs or Covenants, Conditions, and Restrictions.
Public Controls over Real Estate
Zoning
Encroachment
Any addition to the land that extends onto another property.
Homestead Exemption
Special protection from creditors. Some or all of the value of the owner’s equity in the homestead is exempt from the claims of unsecured creditors.
