3 Encumbrances

Question 1

What is an encumbrance?

Answer 1

Any flaws such as claims, charges, or liabilities that attach to and are binding on real estate.

Question 2

What is a lien?

Answer 2

A non-possessory charge against property to provide security for a debt or an obligation of the property owner.

Question 3

What are the 2 categories of liens?

Answer 3

Specific and General

Question 4

What is a specific lien?

Answer 4

A lien secured by a specific parcel of property and affects only that particular property.

Question 5

What are types of Specific Liens?

Answer 5

1. Mortgage
2. Real property taxes
3. Mechanic’s lien
4. Commercial Real Estate Broker’s lien

Question 6

Which lien has superiority over all liens?

Answer 6

Real Property Taxes

Question 7

Special assessment liens

Answer 7

Improvement taxes for things such as sidewalks sewers or townhouse roofs.

Question 8

When can a mechanics lien be filed?

Answer 8

Within 120 days after last day of providing services and materials

Question 9

When can a properly filed mechanics lien be enforced?

Answer 9

Within 180 days after a worker has furnished labor or materials

Question 10

Time frame for a broker to file a North Carolina commercial real estate broker lien?

Answer 10

90 days after tenant takes possession

Question 11

What type of project qualifies for a mechanics lien?

Answer 11

Any NC residential or commercial construction projects where the cost equals or exceeds $30,000

Question 12

What is a general lien?

Answer 12

A lien that affects all the property of a debtor both real and personal rather than a specific parcel of real property.

Question 13

Types of general liens.

Answer 13

1. Judgement
2. Personal property tax liens
3. State Tax liens
4. Federal Tax liens

Question 14

What is Lis Pendens?

Answer 14

A lawsuit that may affect title.

Question 15

What is writ of attachment?

Answer 15

An encumbrance at the request of a creditor for the court to retain custody of an unsecured property to satisfy a judgment.

Question 16

What is writ of execution?

Answer 16

An issuance directing the county sheriff to sell the property to satisfy a judgment.

Question 17

What is an easement?

Answer 17

A nonpossessory right to use the land of another for particular purpose.

Question 18

What is an easement appurtenant?

Answer 18

An easement that is annexed to the ownership of one parcel of land and use for the benefit of another parcel of land.

Question 19

What is an easement in gross?

Answer 19

An individual or company interest in or right to use another’s land.

Question 20

3 ways to create an easement?

Answer 20

1. Express (written or spoken)
2. Implied (actions by necessity)
3. Operation of law (eminent domain)

Question 21

What is a personal nontransferable privilege to enter the land of another for specific purpose?

Answer 21

A license

Question 22

What is an improvement such as a building, fence, or driveway that illegal extends beyond the land of its owner?

Answer 22

An encroachment

Question 23

What are 5 ways to terminate an easement?

Answer 23

1. Release by dominant over servient
2. Combing of lands
3. Abandonment by dominant owner
4. Failure of purpose
5. Expiration

Question 24

What are ad valorem taxes?

Answer 24

General real estate property taxes based on value of the property.

Question 25

NC machinery act

Answer 25

1. Set details of property taxation 2. Requires assessed value of properties be set at 100% of fair market value at least once every 8 years 3. Adjustments up or down may be made at each 4 year interval between assessments

Question 26

What is assessment?

Answer 26

The official evaluation process for setting real estate property taxes by county or Township.

Question 27

Annual taxes =

Answer 27

Tax rate x (assessed value/100)

Question 28

Assessed Value =

Answer 28

(Annual taxes / Tax rate) x 100

Question 29

Tax Rate =

Answer 29

(Annual taxes / Assessed value) x 100

Question 30

What is the NC Tax Timetable?

Answer 30

``` Jan 1- Tax lien filed Jan 5- Last year’s tax must be paid Jan 31- taxable property listed July 1- New tax rate set August- tax bills mailed Sept 1- tax due and payable Dec 31- end of tax year ```

Question 31

What is an easement in necessity?

Answer 31

When land has no access to a street or public way.

Question 32

What are property assessments ?

Answer 32

Valuation based on sales of comparable properties by county or township tax assessors.