Ch. 13 Taxes and Other Liens Flashcards Preview

Real Estate Financing > Ch. 13 Taxes and Other Liens > Flashcards

Flashcards in Ch. 13 Taxes and Other Liens Deck (27):
1

Lien

a charge or claim against a person's property made to enforce the payment of money

2

encumbrance

any charge or claim that attaches to real property and lessens its value or impairs its use

3

voluntary lien

created intentionally by the property owner's actions, such as when someone takes out a mortgage loan

4

involuntary lien

not a matter of choice; it is created by law and may be either statutory or equitable

5

statutory lien

Statutory liens do not result from a court case. They arise from statute. That means that the lien is created under certain circumstances because a law says that in those circumstances, a lien may be created.

6

equitable lien

arises out of common law, a court ordered judgement that requires a debtor to pay the balance on a delinquent charge

7

general lien

affect all the property, both real and personal of a debtor

8

specific lien

secured by specific property and affect only that particular property

9

vendor's lien

lien belonging to the vendor (seller) of the unpaid purchase price of the property

10

junior lien

one that comes after an earlier lien

11

Subordination Agreements

allows a later lien to take priority over an earlier lien

12

General Real Estate Tax/Ad valorem Tax

based on the value of the property being taxed and are specific, involuntary, statutory liens

13

Assessment

An official valuation of property for the purpose of levying a tax

14

Equalization

correct inequalities in statewide tax assessments, an assessment equalization factor is used to achieve uniformity

15

Tax Levy

formal action taken to impose a tax

16

Statutory right of redemption

the defaulted owner may redeem the property by paying the amount collected at the tax sale pus interest and charges (after being sold)

17

Equitable Right of redemption

The delinquent taxpayer may redeem the property anytime 'before' the tax sale by paying delinquent taxes, plus interest and charges

18

Special Assessment

a tax charged on real estate to fund public improvements to the property, and it creates a lien for the amount of the assessment on the property

19

Mortgage Lien

is a voluntary lien on real estate given to a lender by a borrower as security for a real estate loan

20

Mechanics Lien

a specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property

21

judgement

a general, involuntary, equitable lien- a decree issued by a court

22

Satisfaction of judgment

clears the record of a lien

23

Lis Pendens

notice of a possible future lien, lawsuit pending

24

writ of attachemtn

court order against the property of another person that directs the sheriff or other officer of the court to seize or take control of a property

25

Lien for Municipal Utilities

specific, equitable, involuntary lien on property who refuses to pay utility bills

26

Corporate Franchise Tax Lien

general, statutory, involuntary lien on all real and personal property owned by the corporation

27

IRS Tax Lien

results from a person's failure to pay any portion of federal taxes such as income and withholding taxes
general, statutory, involuntary lien on all real and personal property