Unit #5 - Learning Objectives Quiz

Question 1

Distinguish a voluntary and involuntary lien

Answer 1

involuntary liens are imposed without the agreement of the property owner. They can be used to pay off debts. Voluntary liens are applied for by the property owner.

Question 2

Identify the persons entitled to a mechanic’s lien

Answer 2

Anyone who performs work on the property. contractor, subcontractor, architect, builder, or other person in charge of all or part of a project.

Question 3

Describe the notice requirements applicable to a mechanic’s lien

Answer 3

There must be a preliminary notice of 20 days. Notice must be given to the property owner, general contractor (in any), and construction lender (if any). The project starting time determines the preliminary notice.

Question 4

Define an attachment, judgment, and writ of execution.

Answer 4

When property is temporarily seized during a case involving business, trade or profession as security for the court case. A judgement is legal action decided by the court. A writ of execution is a court order directing the county sheriff or another officer to satisfy a judgment of the debtor’s property.

Question 5

Describe the bankruptcy proceeding

Answer 5

• Re-organization, the court approves a plan to repay creditors
• Liquidation, the court approves a plan to repay creditors
• Income reduced by petition

Question 6

List the types of easements and licenses and describe how they can be created.

Answer 6

How they can be created:

• Contract
• Express grant from the owner of the easement property
• Reserving an easement over land that is sold
• implication of law
• long use
• condemnation for a public purpose

Easements:

• implication of law
• by necessity
• by condemnation

Question 7

List the most common forms of property restrictions

Answer 7

Covenants, conditions, and restrictions

Question 8

Identify the persons entitled to a homestead exemption and the amount of the exemption in each case

Answer 8

Applies to an owner-occupied dwelling. This can be any of the following: House and land, Mobile home and land, boat, condo, planned development, stock cooperative, community apartment project.

Homeowner - $75,000
Homeowner in a family unit - $100,000
Homeowner with family member who has a disability - $175,000
Homeowner is 55+ with older or a gross annual income of not more than $25,000 - $175,000