Unit 5

Question 1

Liens

Answer 1

If the owner defaults, the lien gives the creditor the right to force the sale of the property to satisfy the debt.

A recorded lien effectively reduces the owner’s equity in the property in an amount equal to the lien amount.

Question 2

Effects on Title

Answer 2

if a property is being sold, all liens should be paid in full before the property transfers ownership.

Question 3

if statutory law imposes an involuntary lien, the lien is a ___ _____.

Answer 3

statutory lien.

Question 4

If court action imposes an involuntary lien, the lien is an ___ ____.

Answer 4

equitable lien.

Question 5

A ____ lien is placed against real and personal property owned by a particular debtor.

Answer 5

general

Question 6

A ___ lien attaches to a single item of real or personal property and does not affect other property owned by the debtor.

Answer 6

specific

Question 7

___ receive first payment from the proceeds of a foreclosure

Answer 7

Superior liens

Question 8

A lienor can change the priority of a junior lien by voluntarily agreeing to ____, or lower, the lien’s position in the hierarchy.

Answer 8

subordinate

Question 9

All tax liens other than those for ad valorem, assessment, and estate tax are ____. They include:

Answer 9

junior liens ;
Federal income tax lien
State corporate income tax lien
State intangible tax lien
State corporation franchise tax lien

Question 10

After paying the debt from the sale proceeds, the debtor may obtain a ___ __ ___ to clear the title records on other real property that remains unsold.

Answer 10

satisfaction of judgment

Question 11

The creditor may obtain a writ of ___. The plaintiff creditor may secure a writ of ___.

Answer 11

execution ; attachment.

Question 12

Homestead property and joint tenancy estates are ___ from judgment liens

Answer 12

exempt

Question 13

A ____ secures a purchase money mortgage, a seller’s loan to a buyer to finance the sale of a property.

Answer 13

vendor’s lien

Question 14

A ___ may be placed by a buyer when the seller has not delivered the title after all other terms of the contract have been satisfied.

Answer 14

vendee’s lien

Question 15

A municipality may place a _____ against a resident’s real property for failure to pay utility bills.

Answer 15

utility lien

Question 16

A _________ is recorded if the owner can prove that they have a net worth of at least twice the amount of the bail. Homestead property cannot be levied against for surety bail bond lien.

Answer 16

surety bail bond lien

Question 17

If an employer owes back wages to an employee, a _____ can be set against all real and personal property of the employer.

Answer 17

wage lien

Question 18

In which kind of easement is there a dominant tenement and a servient tenement?
An easement in gross
A commercial easement
A personal easement
An easement appurtenant

Answer 18

An easement appurtenant

Question 19

Which of the following is NOT a legal property of liens?
Attaches to the property.
Terminates when payment is recorded.
Generally conveys an equitable interest.
Can only exist one at a time against the same property.

Answer 19

Can only exist one at a time against the same property.

Question 20

Which of the following is true of easements in general?
They involve the property that contains the easement and a non-owning party.
They apply to a whole property, not to any specific portion of the property.
They cannot be assigned or transferred.
They may require a specific use, but cannot prohibit one.

Answer 20

They involve the property that contains the easement and a non-owning party.

Question 21

Which is NOT a superior lien?
Special assessment lien
Real estate tax lien
Federal and state inheritance tax lien
Judgment lien

Answer 21

Judgment lien

Question 21

Which of the following is an example of an easement by necessity?
A court grants a land-locked owner the right to use a neighbor’s driveway for access.
Two neighbors agree the build a fence and share ownership of the fence.
An owner invites a neighbor to use their swimming pool while the owner is away for the summer.
A person habitually parks his recreational vehicle on their neighbor’s yard because his own driveway is not large enough to hold it.

Answer 21

A court grants a land-locked owner the right to use a neighbor’s driveway for access.

Question 22

How is a lien terminated?

Answer 22

Payment of the debt that is the subject of the lien and recording of the satisfaction

Question 23

Which of the following statements about liens is FALSE?
There may be multiple liens against a property.
Liens always convey ownership.
An owner acquires existing liens along with the property.
A lien terminates once the debt is paid and satisfaction is recorded.

Answer 23

Liens always convey ownership.

Question 24

An encumbrance is most broadly defined as

Answer 24

another’s interest in a real property that limits the interests of the freehold property owner.

Question 25

How can a junior lien’s priority be changed?

Answer 25

A lienor can voluntarily agree to subordinate its lien to another lien.

Question 26

Deed restrictions generally concern
a) the form of ownership in which a property may be held.
b)how long a property must be owned before it can be legally transferred.
c)what groups of people are legally excluded from future ownership of a property.
d)how a property may be used and what structures may be built on it.

Answer 26

how a property may be used and what structures may be built on it.

Question 27

A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?

Answer 27

Real estate tax lien

Question 28

What date is used to establish lien priority for a mechanic’s lien?

Answer 28

The date of beginning or ending the mechanic’s work, per state law