Vocabulary: Chapter 7- Real Estate Taxes and Liens

Question 1

Ad valorem tax

Answer 1

A tax levied according to value, generally used to refer to real estate tax. Also called the general tax

Question 2

Assessment

Answer 2

The imposition of a tax, charge, or levy, usually according to the established rates

Question 3

Attachment

Answer 3

The act of taking a person’s property into legal custody by writ or other judicial order to hold it available for application to that person’s debt to a creditor

Question 4

Equalization factor

Answer 4

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax would be based on this adjusted value

Question 5

Equitable Lien

Answer 5

A lien which arises out of common law

Question 6

Equitable right of redemption

Answer 6

The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges

Question 7

Estate Tax

Answer 7

Federal tax on a decedent’s real and personal property

Question 8

General Liens

Answer 8

The right of a creditor to have all of a debtor’s property- both real and personal- sold to satisfy a debt

Question 9

General real estate tax

Answer 9

A tax that is made up of the taxes levied on the real estate by government agencies and municipalities

Question 10

Inheritance taxes

Answer 10

State-imposed taxes on a decedent’s real and personal property

Question 11

Involuntary lien

Answer 11

alien placed on property without the consent of the property owner

Question 12

Judgement

Answer 12

The formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgement has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant

Question 13

Lien

Answer 13

A right given b y law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale

Question 14

Lis Pendens

Answer 14

A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court

Question 15

Mechanic’s Lien

Answer 15

A statutory lien created in favor of contractors, laborers, and materialmen who have performed work or furnished materials in the erection or repair of a building

Question 16

Mill

Answer 16

One-tenth of one cent. Some states use a mill rate to compute real estate taxes; for example, a rate of 52 mills would be $0.052 tax for each dollar of assessed valuation of a property.

Question 17

Mortgage Lien

Answer 17

A lien or charge on the property of a mortgagor that secures the underlying debt obligations

Question 18

Redemption

Answer 18

The right of a defaulted property owner to recover his or her property by curing the default

Question 19

Special assessments

Answer 19

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

Question 20

Specific Liens

Answer 20

A lien affecting or attaching only to a certain, specific parcel of land or piece of property

Question 21

Statutory Lien

Answer 21

A lien imposed on property by statue–a tax lien for example–in contrast to an equitable lien, which arises out of common law

Question 22

Subordination agreements

Answer 22

A written agreement between holders of liens on a property that changes the priority of mortgage, judgement, and other liens under certain circumstances

Question 23

Tax Sale

Answer 23

A court-ordered sale of real property to raise money to cover delinquent taxes

Question 24

Vendor’s Lien

Answer 24

A lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has not taken any other lien or security beyond the personal obligation of the purchaser

Question 25

Voluntary Lien

Answer 25

A lien placed on property with the knowledge and consent of the property owner