Virginia Real Estate Taxes and Other Liens (6)

Question 1

T/F. The Virginia Constitution requires that taxation be uniform?

Answer 1

True

Question 2

Requires that both the tax rate and the mode of assessing the taxable value must be uniformly applied to similar properties, that is, all property of the same class must be taxed alike.

Answer 2

Uniform Taxation

Question 3

What types of properties are exempt from taxation?

Answer 3

1) Cemeteries
2) Property used for religious organizations
3) public libraries or nonprofit educational institutions
4) charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes is also exempt

Question 4

In Virginia, the________ is said to own the property on the date of _________or__________.

Answer 4

Buyer

Closing or Settlement

Question 5

T/F. The buyer of a property is responsible for paying real estate taxes for the current tax year from the date of purchase until the end of the year.

Answer 5

True

Question 6

What are the 4 phases of taxes?

Answer 6

1) Past-due Taxes
2) Taxes currently due and payable
3) Taxes not yet due
4) Prepaid Taxes

*Top 2 paid by seller / bottom 2 paid by buyer.

Question 7

Sometimes, past-year taxes cannot be used to estimate current taxes. On occasion a licensee may desire to prepare either a seller or buyer an illustration through the use of a ______________ of the costs associated with the transaction.

Answer 7

Net Sheet

Question 8

T/F. In regards to tax liens, in the case of new construction, the taxes on the land are prorated based on taxes for the current year.

Answer 8

False. Past year

Question 9

In regards to taxes on new construction, taxes on the new improvements are estimated using the _____________ multiplied by the county or city _______________. Taxes are estimated from the date the ________________ is issued,

Answer 9

purchase price
assessment rate
certificate of occupancy

Question 10

As a general rule, the __________ under any ordinary lease is responsible for the taxes on the property; however, this does not apply to a ______________ who is, in effect, the owner of the property and is entitled to its use forever. In such a case, the burden of taxation is placed on the lessee. In the case of net leases, the _________ is usually responsible for payment of the taxes.

Answer 10

landlord
perpetual leaseholder
tenant

Question 11

In regards to real estate tax law, delinquent taxes are both a ________________ and a _________ against a property.

Answer 11

personal debt

lien

Question 12

In VA, a tax lien on real property has priority over all other liens except?

Answer 12

court costs

Question 13

A lien in favor of the United States for unpaid taxes, interest, and penalties may arise against all __________ and _________________ belonging to a taxpayer. The lien is perfected under Virginia law by filing a ____________ in the _______________ for the jurisdiction in which the _________________.

Answer 13

real
personal property
notice of tax lien
circuit court
taxpayer resides

Question 14

In VA regarding delinquent taxes, when taxes on real estate in a county, city, or town are delinquent on ___________ following the ______ anniversary of the date on which the taxes became due, the real estate may be sold to collect the tax.

Answer 14

December 31

3rd

Question 15

In regards to VA delinquent tax property sales (foreclosure), At least ________ before taking any action to sell the property, the tax-collecting officer must send a notice to the last known address of the property owner. Notice of the sale must be published in a newspaper of general circulation in the area _____ to ____ days prior to the commencement of the sale proceedings.

Answer 15

30 days
30
60

Question 16

T/F. In regards to recovering property being sold for delinquent taxes in VA, owners of real estate, or their heirs, successors, and assigns, have the right to redeem the real estate prior to the sale date and after the sale date?

Answer 16

False. ONLY PRIOR

Question 17

T/F. In regards to delinquent real estate tax sales, the former owner of any real estate sold for delinquent real estate taxes is entitled to any receipts from the sale in excess of the taxes, penalties, interest, and costs?

Answer 17

True

Question 18

Special Assessments?

Answer 18

taxes levied against specific benefited properties to pay for limited local improvements.

Question 19

In regards to special assessments, the only properties subject to special assessments are those of abutting landowners. Local improvements may be ordered by a town or city council (with costs to be defrayed by special assessment) following receipt of a petition from not less than ________ of the landowners who will be affected by the assessment. However, the council may issue such an improvement order without a petition.

Answer 19

3/4

Question 20

In regards to mechanic’s liens, anyone who performs labor or furnishes material with a value of ______ or more for the construction, removal, repair, or improvement of any structure has a right of lien on both the land and the building

Answer 20

$50

Question 21

The Virginia Mechanics’ Lien Disclosure Act?

Answer 21

requires that the seller of property disclose in the sales contract a warning that an effective mechanic’s lien may be filed against the real property even after settlement.

Question 22

In VA regarding mechanics liens, Virginia law §43.1 et seq. permits persons who have performed labor or furnished materials for the construction, removal, repair, or improvement of any building or structure to file a lien against the property. This lien may be filed at any time after the work is commenced or the material is furnished, but not later than the earlier of? (2)

Answer 22

1) 90 days from the last day of the month in which the lienor last performed work or furnished materials
2) 90 days from the time work is terminated

Question 23

In regards to VA mechanic’s liens, a general contractor or a subcontractor may perfect a mechanic’s lien by filing a memorandum of mechanic’s lien and an affidavit with the ____________ in the jurisdiction in which the ____________________.

Answer 23

clerk of court

property is located

Question 24

In regards to VA mechanic’s liens, a mechanic’s lien is enforced by a suit filed within ________ of recording the memorandum of lien or ______ from the completion or termination of work on the structure, whichever is later.

Answer 24

6 months

60 days

Question 25

T/F. In regards to VA mechanic’s liens, if the person who ordered the work owns less than the fee simple estate in the land, only his or her actual interest is subject to the lien?

Answer 25

True

Question 26

T/F. In regards to mechanics liens and other liens, when a lien, such as a deed of trust, is created on land before work is begun or materials furnished, the deed of trust is a first lien on the land and a second lien on the building or structure?

Answer 26

True

Question 27

T/F. In regards to mechanics liens and other liens, a deed of trust that is recorded, before work began on the property, is entitled to priority to the extent of the estimated value of the property WITH improvements for which the lien is claimed?

Answer 27

False. WITHOUT IMPROVEMENTS

Question 28

In regards to the selling of property and mechanic’s liens, typically, the seller must execute an affidavit at closing that declares no work has been performed or any materials furnished within ______ before the date of closing.

Answer 28

120 days

Question 29

T/F. In regards to judgements in VA, every money judgment rendered in Virginia by any court, or by confession of judgment, constitutes a lien on any real estate the judgment debtor owns or may own in the future?

Answer 29

True

Question 30

In regards to judgements in VA, the lien is effective from the date the judgment is _________, that is, indexed by the clerk of court. It is prudent to docket the judgment in the city or county in which the _____________.

Answer 30

docketed

debtor’s property is located

Question 31

In regards to judgements in VA, a ____________ may be issued and the judgment enforced within ______ from the date the judgment was rendered. A judgment may be extended beyond its life by a motion made in the circuit court, following notice to the judgment debtor and redocketing of the judgment.

Answer 31

writ of execution

20 years

Question 32

In regards to judgements in VA, if the real estate is conveyed to a grantee for value subject to a judgment lien, the judgment creditor must bring the suit to enforce the judgment lien within ______ from the date the grantee’s deed was recorded.

Answer 32

10 years

Question 33

In regards to judgements in VA, if the judgment is for recovery of specific real property, a ___________ is needed. If the judgment debtor owns real estate outside Virginia, the debtor may be required to convey it to a _______.

Answer 33

writ of possession

sheriff

Question 34

In regards to satisfaction of judgements in VA, within ______ of the satisfaction, that is, payment of a judgment, a judgment creditor must release the judgment wherever it is docketed. Failure to do so within _______ of demand by the judgment debtor makes the creditor subject to a fine.

Answer 34

30 days

10 days

Question 35

T/F. According to VA estate and inheritance ta liens, a lien arises on all property, real and personal, of every decedent who has a taxable estate located in the Commonwealth of Virginia if the decedent’s estate fails to pay the tax imposed by the Virginia Estate Tax Act?

Answer 35

True

Question 36

In the case of a nonresident decedent who has a taxable estate in Virginia, the lien arises automatically at the time of the ___________. In the case of a resident decedent, the liens attach to the real estate only when a _________ is filed by the department of taxation in the clerk’s office of the county or city where such real estate is located. Once it attaches, the lien is enforceable for ________ from the date of the decedent’s death.

Answer 36

nonresident’s death
memorandum
10 year’s

Question 37

In regards to VA estate and inheritance tax liens, the tax imposed is a ___________ rather than an estate tax: It is a tax on the right to succeed to the property or an interest in it, not the right to transmit it.

Answer 37

succession tax

Question 38

T/F. The mere issuance of an attachment creates a lien on the real estate?

Answer 38

False. To create a lien, it is necessary for the officer to show that levy (actual attachment or seizure) was made.

Question 39

In VA, a _________, or pending suit, does not bind or affect a subsequent purchaser of real estate unless a ___________ is properly recorded giving notice of the suit.

Answer 39

lis pendens

memorandum

Question 40

T/F. In VA, If a lis pendens is not docketed as provided by the statutes, a purchaser without notice of the pending suit takes good title, with no lien on the land by virtue of the pending suit.

Answer 40

True

Question 41

T/F. In Virginia, if any person conveys any real estate and the purchase money remains unpaid at the time of the conveyance, the vendor will have a lien for the unpaid purchase money?

Answer 41

False. A vendor will NOT have a lien for the unpaid purchase money unless the lien is expressly reserved on the face of the deed.

Question 42

Describe the landlord’s lien?

Answer 42

• relates back to the very beginning of the tenancy
• takes precedence over any lien against goods (personal property) on the leased premises since the tenancy began
• Legally attaches to all property on the premises when it is asserted or on the premises within 30 days prior to attachment of lien

Question 43

In VA relating to landlord’s liens, the landlord can seize the tenant’s goods to what extent?

Answer 43

only to the extent to satisfy the rent owed.

Question 44

Describe a Commercial Broker’s Lien?

Answer 44

A commercial real estate broker has a lien on the rent paid by the tenant in the amount of the compensation (commission) agreed on by the owner and the broker.