Vocabulary for Encumbrances Flashcards
anything that affects or limits the fee simple (or fee simple absolute) title to property
Encumbrance
a right or interest in a property held by one who is not the legal owner of the property
Encumbrance
An easement, deed restriction, encroachment and lien are examples of what?
Encumbrances
a non-revocable right of USE of property not your own which can be created by necessity, implication (eg mineral rights) or prescription (adverse possession)
Easement
PRIVATE controls on USE of property by an entity not owning the property
Deed restrictions
declaration of restrictions, restrictive covenants, and CCR’s are also names for
Deed Restrictions
covenants, conditions and restrictions
CC&Rs
2 ways to enforce deed restrictions
HOAs and the courts
a physical trespass or nuisance from a neighbor
Encroachment
a way to resolve an encroachment through the HOA or courts
Abatement action
a charge or claim one has on the property of another as security for a debt or obligation; can be specific or general, voluntary or involuntary and is enforceable
Lien
a mortgage, trust deed or carry-back are examples of this
Voluntary lien
a judgment, assessment, attachment, mechanics lien, property taxes, IRS and decedent debts are are types of this
Involuntary lien
a court decree which after being entered and recorded becomes a lien on all the property of a defendant (general lien)
Judgment
money paid for street improvements is an example of this specific lien
Assessment
money paid on property as a specific lien
Property taxes
seizure of real or personal property by the court as security for satisfaction of debt like credit care debt is this type of specific lien
Attachment
a lien, usually by contractor for unpaid services; would be filed AFTER completion of the project; this can be assigned
Mechanic Lien
a general lien for unpaid taxes
IRS lien
a lien on an estate where a probate court must give claims consideration
Decedent debts
filing Liz Pendens, writ of attachment and garnishment are the 3 steps to this lien
Attachment
meaning “legal action pending”, this is document giving constructive notice to interested persons that an action against a specific piece of property has been taken.
Liz Pendens
a recorded legal writ giving the court custody of real property until a creditor’s suit is settled; also known as “freezing an asset”.
Writ of Attachment
the legal taking of wages, goods or effects through a third party to satisfy a debt (will use a writ)
Garnishment
word that means “incomplete”
Inchoate
a decision by the court on an action or lawsuit; it becomes a general lien on all property owned in the county where recorded; remains on credit report for 7 years, but enforceable only 5 years
Judgment
a court order directing the sheriff to seize and sell as much of the defendant’s property as necessary to satisfy the debt and expense of the sale
Writ of Execution
a legal period of time in which parties may bring suit to enforce their rights;in AZ it is 5 years to obtain a writ of execution
Statute of Limitations
if done within 90 days of the end of the statute of limitations for the judgment, the period can be extended another 5 years and is called this
Renewal
if the plaintiff tries to assert claim after the statute period has passed it is called this
Laches
a judgement lien takes its priority when?
At the time it is recorded
a document acknowledging payment of a judgment with interest (to be charged annually at 1% above prime at time of judgment or 10% of judgment, whichever is less)
Satisfaction
name of the theory where a borrower has legal title to mortgaged property and the lender is the holder of the deed of trust or mortgage lien (AZ); title is held by mortgagor while lien is held by lender
Lien Theory
name of the theory where the lender has legal title to a mortgaged property and the borrower has equitable title; lender holds the title.
Title Theory
a voluntary bank lien in which real estate is pledged as security for a debt
Mortgage
a voluntary lien in which the trustor conveys title to a trustee who holds it as security for the beneficiary
Trust deed
a property lien in which the seller assumes the lender’s role and carries the unpaid balance of the purchase price as a loan to the buyer
Seller carry-back
a lien that covers work done and materials, usually filed by a contractor, for home improvement; require a written contract between homeowner and worker
Mechanics Lien
priority begins when work begins or materials are delivered for this lien
Mechanics Lien
the number of days of notification required for a mechanics pre-lien notice
20 days from signed contract
the number of days for a mechanics lien to be recorded
120 days from completion of work
the priority is the date the work began or materials are delivered for this lien
Mechanics Lien
the number of days to file a lawsuit if contractor is not paid
180 days from date of recordation
when an improvement is physically finished, used by the owner or given final inspection
Completion of work by contractor
