Assessment Flashcards
(141 cards)
1
Q
Which lien affects all real and personal property of a debtor?
A
General
2
Q
___ refers to the order in which liens will be paid if property is sold to satisfy a debt
A
Priority of liens
3
Q
Special assessment is a lien on real estate made to secure payment for a(n)…
A
specific municipal improvement project
4
Q
Judgement is classified as a(n) ___ lien.
A
General
5
Q
Which of these liens would be generally given highest priority in disbursing funds from a foreclosure sale?
A) Mortgage dated last year
B) Mechanic’s lien for work started before the mortgage was made
C) Real estate taxes due
D) Judgment rendered yesterday
A
Real estate taxes due
6
Q
Which of these taxes targets homeowners in particular?
A) Personal property tax
B) Sales tax
C) Real property tax
D) Luxury tax
A
Real property tax
7
Q
A homeowner decided to add a family room onto his house. An electrician was hired to wire the room but has not been paid. The electrician has the right to record a notice of the ___ lien and to ___.
A
mechanic’s lien
file a court suit
8
Q
What is the annual real estate tax on a property valued at $135,000 and assessed for tax purposes at $47,250 with an equalization factor of 125% when the tax rate is 2.5%?
A
$1,477
9
Q
Which of these is a voluntary, specific lien?
A) IRS Tax lien
B) Mechanic’s lien
C) Mortgage lien
D) Special assessment
A
Mortgage lien
10
Q
In 2 weeks, a general contractor will file a suit against a homeowner for nonpayment. The contractor just learned that the homeowner has listed the property for sale with a real estate broker. In this situation, what will the contractor’s attorney use to protect the contractor’s interest?
A
Lis pendens
11
Q
Special assessment liens take ___ over mechanics’ liens
A
priority
12
Q
Unpaid mortgage loan creates a(n) ___ on real estate.
A
lien
13
Q
A(n) ___ lien would be available to a contractor.
A
Mechanics’
14
Q
A person owns a primary residence and 2 apartment buildings. She pays property taxes on 2 of the 3 properties. The delinquent taxes will result in a lien on which property?
A
the property which she has not paid the taxes
15
Q
General real estate taxes leveled for the operation of the government are called…
A
Ad valorem taxes
16
Q
The equalization factor used in Illinois taxation is designated to correct ___ between the assessed values of similar parcels of land in various counties.
A
Discrepancies
17
Q
A man owns a condo town house in Cook County and a weekend retreat in Sangamon County, both in Illinois. He also owns investment property in Montana. If one of his creditors sues him in a Cook County court and a judgment is issued against him and is recorded in both Cook and Sangamon counties, the judgement becomes a lien on which properties?
A
The properties in Cook and Sangamon counties
18
Q
A man owns a condo town house in Cook County and a weekend retreat in Sangamon County, both in Illinois. He also owns investment property in Montana. If one of his creditors sues him in a Cook County court and a judgment is issued against him and is recorded in both Cook and Sangamon counties, the judgement becomes a lien on all of the properties EXCEPT…
A
the property in Montana
19
Q
A successful bidder wins a. property at an annual tax sale. She may obtain a tax deed if the property is…
A
not redeemed within the redemption period
20
Q
The first installment of the tax bill for all counties except Cook is due on…
A
June 1
21
Q
A charge or claim against a person’s property to enforce the payment of money
A
Lien
22
Q
A lien that is created intentionally by the property owner’s action
A
Voluntary lien
23
Q
A lien created by law
A
Statutory lien
24
Q
A lien created by a court judgment
A
Equitable lien
25
A lien that affects all of the real and personal property owned by a debtor
General lien
26
A lien that is secured by and only affects certain property of the debtor
Specific lien
27
The order in which claims against property will be satisfied
Priority
28
A written agreement between lienholders to change the priority of a lien
Subordination
29
Charges imposed by state and local governments to fund their functions and services
Taxes
30
A type of tax based on the assessment of a property's value
Ad valorem
31
The official process of valuing real estate for tax purposes
Assessment
32
A device to achieve uniformity in statewide investments
Equalization factor
33
1/1,000 of a dollar, or $0.001
Mill
34
The right of a delinquent taxpayer to recover property before a tax sale
Equitable right of redemption
35
The right of a delinquent taxpayer to recover property after a tax sale
Statutory right of redemption
36
Taxes levied on specific properties that benefit from public improvement
Special assessments
37
A specific, involuntary lien that gives security to persons or companies who perform labor, or who furnish material to improve real property
Mechanics' Lien
38
A court decree that establishes the amount owed by a debtor and provides for money to be awarded
Money judgment
39
A notice of a possible future lien based on a lawsuit
Lis pendens
40
A writ that permits a court to retain custody of a debtor's property until the creditor's lawsuit is concluded
Attachment
41
To reveal any recorded liens, a property buyer should require a(n) ___ before closing the real estate transaction.
Title search
42
A county assessor usually bases a property's ___ on the sale prices of comparable propertyies
assessed value
43
Usually, a vote of the taxing district's governing body is needed to impose a(n) ___.
Tax levy
44
In many states, when a purchaser at a tax sale receives the ___ the purchaser gains the right to take possession of the property.
Certificate of sale
45
A lien that is created intentionally by the property owner's action, such as taking out a mortgage, is called a(n) ___.
Voluntary lien
46
The priority of a(n) ___ may be established as the date construction began or materials were first furnished
Mechanics' lien
47
A court order against the property of another person that directs the sheriff to take control of a property is called a(n) ___.
Writ of attachment
48
When real property is sold to pay off a debt, the debtor should get a legal document called a(n) ___.
Satisfaction of judgment
49
Hospitals are an example of a property that is exempt from ___.
Taxation
50
When a large scale improvement project, such as sewer construction, is planned, it may be funded by creating a(n) ___.
Local improvement district
51
Mechanics' Liens are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
Specific
Involuntary
Statutory
52
Mortgage liens are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
Specific
Voluntary
Equitable
53
Bail bonds are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
Specific
Voluntary
Statutory
54
Municipal Utility Liens are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
Specific
Involuntary
Equitable
55
Federal Estate Tax Liens are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
General
Involuntary
Statutory
56
Corporate franchise taxes are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
General
Involuntary
Statutory
57
State inheritance taxes are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
General
Involuntary
Statutory
58
Judgements are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
General
Involuntary
Equitable
59
Real property taxes are...
Select all that apply:
A) General
B) Specific
C) Voluntary
D) Involuntary
E) Equitable
F) Statutory
Specific
Involuntary
Statutory
60
A(n) ___ lien may be classified as either statutory or equitable.
involuntary
61
Voluntary liens are never ___.
statutory
62
A charge or claim against a person's property by a creditor, which is made to enforce the payment of money, is called a(n) ___.
Lien
63
All encumbrances are liens. True or false?
False
64
A(n) ___ is any charge or claim that attaches to real property and lessens its value or impairs its use, but does not prevent the transfer of the property.
encumbrance
65
Both federal estate taxes and state inheritance taxes are ___, ___, and ___ liens.
1) general
2) statutory
3) involuntary
66
A(n) ___ lien is created intentionally by the property owner's actions, such as taking out a mortgage.
Voluntary
67
A lien runs with....
the land
68
Liens bind all successive ___.
owners
69
A special assessment is always a(n) ___ and ___ lien.
Specific
Statutory
70
A court's decree that establishes the amount owed by a debtor is enforced by the creditor obtaining a(n) ___ directing the sheriff to seize and sell the debtor's property.
writ of execution
71
___ and ___ generally take priority over all other liens.
Real estate taxes
special assessments
72
___ taxes are based on the value of the property being taxed and are specific, involuntary, statutory liens.
Ad valorem
73
All liens are encumbrances. True or false?
True
74
The presence of a lien on real property prevents the owner from conveying title to another party. True or false?
False
75
The presence of a lien on real property does not prevent the owner from conveying title to another party. True or false?
True
76
A taxing body determines the appropriate tax rate by dividing the total ___ needed for the coming fiscal year by the total ___ of all taxable real estate located within the taxing body's jurisdiction.
Monies
Assessments
77
A delinquent taxpayer may redeem property any time prior to a tax sale by exercising a(n) ___.
Equitable right of redemption
78
___ liens are secured by specific property and affect only that particular property
Specific
79
Generally in a court ordered sale, ___ is paid first.
Real estate taxes
80
Which of these is a specific, voluntary lien?
a) decedents debts
b) internal revenue service liens
c) mortgage liens
d) corporate franchise liens
Mortgage
81
The millage breakout for ad valorem taxes is library: 0.5; school: 1; school debt service: 0.5; community college: 1; vocational school: 0.5; and all others: 5. If a property is assessed at $165,000, how much is the tax bill?
$1,402.50
82
Which is not a lien against real property?
a) mortgage
b) real estate tax
c) lis pendens
d) home improvement loan of a deceased property owner
Lis pendens
83
A writ of execution permits law enforcement to ___ and ___ a debtor's property.
Seize and sell
84
In february, a homeowner contracted with a general contractor to have a basement storage space converted to a sauna, but never paid for the work. The homeowner stopped making mortgage payments in june. The owner is 2 years delinquent in property taxes to the county. If all of these creditors obtain judgments against the owner in november, what will be the priority of their liens from first to last?
1) county
2) contractor
3) mortgage
85
A town wants to construct new concrete curbs in a residential neighborhood. How will the town most likely raise the money necessary for the improvement?
Special assessment
86
A lien that does not have to be recorded to be effective is the ___.
real estate tax lien
87
The market value of an undeveloped parcel is $40,000. Its assessed value is 40% of market value, and properties in its county are subject to an equalization factor of 1.50. If the tax rate is $4 per $100, what is the amount of the tax owed on the property?
$960
88
To give notice of a potential claim against property and to establish priority, a creditor may file a(n) ___.
Lis pendens
89
A homeowner considered having a new garage built and talked about the project with a contractor. In april, while the homeowner was on vacation, the contractor began bulding the garage according to the homeowner's specifications. Work was complete by the end of May. In June, the homeowner returned from vacation and refused to pay for the garage. The contractor decided to file a mechanic's lien in July. Is the contractor entitled to a lien? Why or why not?
No, because there was no express or implied contract between the homeowner and contractor.
90
A buyer should insist on a(n) ___ before closing a real estate transaction so that any recorded liens are revealed.
Title search
91
___ refers to the order in which claims against the property will be satisfied.`
Priority of liens
92
Liens generally take priority from the...
Date they are recorded in public records
93
A mansion is ordered sold by the court to satisfy the owner's debts. The property is subject to a $50,000 judgment lien, incurred as a result of the mechanic's lien suit. Principal and interest totaling $295,000 remains to be paid on the mansion's mortgage. This year's unpaid real estate taxes amount to $5,000. The judgment lien was entered in the public record on February 7, 2014, and the mortgage lien was recorded on January 22, 2012. If the mansion is sold at the tax sale for $375,000, the proceeds of the sale will be distributed in what order?
1) Real estate taxes
2) Mortgage lender
3) Creditor named in judgment
4) Owner
94
A mansion is ordered sold by the court to satisfy the owner's debts. The property is subject to a $50,000 judgment lien, incurred as a result of the mechanic's lien suit. Principal and interest totaling $295,000 remains to be paid on the mansion's mortgage. This year's unpaid real estate taxes amount to $5,000. The judgment lien was entered in the public record on February 7, 2014, and the mortgage lien was recorded on January 22, 2012. If the mansion is sold at the tax sale for $325,000. How much will be distributed to the creditor named in the judgment lien?
$25,000
95
A mansion is ordered sold by the court to satisfy the owner's debts. The property is subject to a $50,000 judgment lien, incurred as a result of the mechanic's lien suit. Principal and interest totaling $295,000 remains to be paid on the mansion's mortgage. This year's unpaid real estate taxes amount to $5,000. The judgment lien was entered in the public record on February 7, 2014, and the mortgage lien was recorded on January 22, 2012. If the mansion is sold at the tax sale for $325,000. How much will be distributed to the owner?
$0
96
A mansion is ordered sold by the court to satisfy the owner's debts. The property is subject to a $50,000 judgment lien, incurred as a result of the mechanic's lien suit. Principal and interest totaling $295,000 remains to be paid on the mansion's mortgage. This year's unpaid real estate taxes amount to $5,000. The judgment lien was entered in the public record on February 7, 2014, and the mortgage lien was recorded on January 22, 2012. If the mansion is sold at the tax sale for $375,000. How much will be distributed to the creditor named in the judgment lien?
$50,000
97
A mansion is ordered sold by the court to satisfy the owner's debts. The property is subject to a $50,000 judgment lien, incurred as a result of the mechanic's lien suit. Principal and interest totaling $295,000 remains to be paid on the mansion's mortgage. This year's unpaid real estate taxes amount to $5,000. The judgment lien was entered in the public record on February 7, 2014, and the mortgage lien was recorded on January 22, 2012. If the mansion is sold at the tax sale for $325,000. How much will be distributed to the owner?
$25,000
98
All liens are ___.
Encumbrances
99
All encumbrances ___ liens.
are NOT
100
A statutory lien is created intentionally by the owner. True or false?
False
101
A(n) ___ lien is created intentionally by the owner's choice.
Voluntary
102
In Illinois, what types of properties are totally exempt from paying general real estate taxes?
Schools
Churches
Cemeteries
Charitable institutions
Government property
103
Illinois property taxes are adjusted to reflect certain concessions given on owner-occupied residences, these properties are designated as ___.
Homesteads
104
This property tax exemption applies to owners of single family homes, condos, cooperatives, and 1-6 unit apartment buildings.
Homeowner exemption
105
This property tax exemption is available to homeowners over the age of 65.
Senior citizen homestead exemption
106
The ___ program allows Illinois seniors to freeze their assessed valuation for the remainder of their lifetime once they have turned 65 if household income doe snot exceed $55,000.
Senior Citizen Assessment Freeze Homestead Exemption
107
The Senior Citizen Assessment Freeze Homestead Exemption program allows Illinois seniors to freeze their assessed valuation for the remainder of their lifetime once they have turned 65 if household income doe snot exceed $___.
$55,000
108
This exemption allows any Illinois homeowner who has recently improved their home to forestall an increase in the home's overall assessed value for up to 4 years.
Home improvement exemption
109
If there is a new addition or remodeling, the buyer's real estate agent should be aware of which 2 things?
1) Mechanic's liens
2) 4 year homestead improvement exemptions
110
What are the 4 steps to determine taxes?
1) Locate assessed value
2) Equalize assessed value
3) Subtract any exemptions
4) Tax rate times adjusted assessed value = real estate taxes
111
___ x ___ = real estate taxes
Tax rate times adjusted assessed value
112
Tax rate times adjusted assessed value = ___
Real estate taxes
113
In Illinois, any given parcel (outside of Cook County) receives full assessment on a(n) ___ basis
Quadrennial (4-year)
114
In cook county, any given parcel receives full assessment on a(n) ___ basis.
Triennial (3-year)
115
A taxing district's budget indicates that $800,000 must be acquired from real estate taxes to pay for needed expenditures. The assessment roll (assessor's record) of all taxable real estate within the district equals $10 million. The tax rate is computed as...
$800,000 divided by $10,000,000 = 0.08 or 8%
116
If a property is assessed for tax purposes at $160,000 and the tax rate is 3%, assuming there is no equalization factor, what amount will the tax be?
$4,800
117
If a property is assessed for tax purposes at $160,000 and the tax rate is 3%. The equalization factor is 120%. What is the equalized assessed value?
$192,000.
118
If a property is assessed for tax purposes at $160,000 and the tax rate is 3%. The equalization factor is 120% and the equalized assessed value is $192,000. How much will be owed in taxes?
$5,760
119
When a property owner fails to pay taxes on real estate in Illinois, the property may be sold in 1 of which 3 ways?
1) Annual tax sale
2) Forfeiture sale
3) Scavenger sale
120
How can someone who has ownership or legal interest in real property prevent the real property from being sold in an annual tax sale?
Paying the delinquent debt
121
In Illinois, the statutory period allowed for redemption on properties with six or fewer units is ___ from the date of sale.
2 1/2 years
122
If there are no bids on property at an annual tax sale, the property is forfeited to the ___.
state
123
Anyone who wants to purchase property in a forfeiture tax sale must submit an application to the ___.
County
124
What 3 things must an owner pay in order to reclaim property from a forfeiture sale?
1) Delinquencies
2) publication costs
3) interest
125
If taxes have not been paid for two years or more, the property may be sold at a(n) ___.
Scavenger sale
126
In a scavenger sale, the property is sold to...
the highest bidder
127
If a property is bought in a scavenger sale, the buyer is required to pay...
CURRENT taxes
128
If a property is bought in a scavenger sale, the buyer is required to pay the tax lien. True or false?
false
129
Which 2 people are not allowed to bid in a scavenger sale?
1) former owners
2) anyone delinquent in taxes for 2 or more years
130
For redemption to occur, all ___ plus ___ and ___ must be paid by the redeemer.
taxes plus interest and penalties
131
The annual due date for assessment payments in Illinois is generally on ___.
January 2
132
A lien used by the IRS for failure to pay taxes
Income tax lien
133
Lien that gives security to companies or persons that perform labor or furnish materials to improve real property
Mechanics' liens
134
Lien on a deceased person's real and personal property
Estate tax
135
Tax based on improvements made to the property
Special assessment
136
Lien used to secure a loan on real estate
Mortgage loan
137
Order issued by a court settling the parties' obligations to a lawsuit
Judgment
138
Tax based on the value of a property
Ad valorem tax
139
A(n) ___ may be applied to raise or lower assessments in a particular district or county
Equalization factor
140
What is the formula for calculating annual real estate taxes?
Assessed value times equalization factor minus exemptions times tax rate equals annual real estate taxes
141
