Flashcards in chapter 10 Deck (32)
what is a lien?
is a charge against property that is make to enforce payment of money
what is a encumbrance?
is any charge or claim that attaches to real property and lessens it's value or impairs it use. you can still transfer the property with a encumbrance
what is VISE for creating a lien?
Voluntary, Involuntary, Stationary, Equitable
what is voluntary lien?
is created intentionally by the owner
what is involuntary lien?
is created by law, the owner has no choice
what is statuary lien?
is created by statue A real tax lien, this it is involuntary lien it is created by statue without the property owner talking it on voluntary
what is equitable lien?
is created by a court ensure the payment of judgement as well as by agreement
What is general lien?
affect all the property and personal
what is specific lien?
are secured by property and only affect that particular property
what is priority of liens?
refer to the order in which claim against the property will be payed
what is subordination agreement?
written agreements between lien holders to charge the priority of mortgage, judgment and other liens
What is ad valorem tax?
this is latin for "according to value". it s based on the value of the property being taxed. they are specific involuntary, statutory liens.
what are totally exempt from properties taxes in IL?
schools, religious institution, cemeteries, and charitable institutions
what are the exemptions for property tax?
1. homeowner's exemptions
2.senior citizen homestead exemption
3.senior assessment freeze homestead
4.homestead improvement exemption
what is homeowners' exemption?
applies to owners, in some counties owner have apply to assessor for the exemption each year, in the exemption is automatically applied
what is senior citizen homestead exemption?
this available to homeowner over the age of 65. Seniors must prove age and ownership to the county assessor by december 31 of the assessment year for which the application is made.
What is senior assessment freeze homestead exemption program?
this program allow IL senior to freeze their assessed valuation for the remainder of the their lifetime once they have turned 65 if house hold income does not exceed 55,000
annual application and proof of income must be file with the county assessor.
what is homestead improvement exemption?
this allows any IL homeowner who has recently improved house they live in, home over assessed value for up the four years this exemption is available up the an improvement value of 75,000
what is assessment for property tax?
real estate is valued for tax purposes by bound to township assessor or appraiser
what is cook assessed at for property tax?
33 1/3% of fair market value. taxpayers who believe that error were made in property assessment ay file a complaint directly with the county assessor.
What is equalization for property tax?
in some jurisdiction when it is necessary to correct inequalities is statewide tax assessment, an equalization factor is used achieve uniformity
what determines taxes?
1. locate assessment value
2. always "equalize" assessed value first
3. subtract any exemptions
4. multiply adjusted assessed value by rate = real estate taxes
what is appropriation for property taxes?
formal appropriation is the way a taxing body actually authorizes the expenditure of fund and provides for the sources of the finding
what does appropriation general involves?
this involves the adoption of the ordinance or the passage of law that state the specific terms of the proposed taxation
what is scavenger sale?
if the taxes have not been paid on a property for two years or more the property may be sold a scavenger sale. the county must go throughout same court process as it would for tax sale and receive an order an order of sale. the property is sold to the highest bidder. the buyer is not required to the tax leon but must the current taxes.
in this case, former owner may not bid on the their delinquent property, either person or through an agent, nor may person who are delinquent on their taxes by two year or more
if they don't pay the person who payed the tax will own the property
what is special assessment?
are taxes levied on real estate to fund publican improvements to the property. property owner living nearest to the improvements are required to pay for them because their properties benefit from the improvements.
what is mechanics liens?
are specific, involuntary leon that gives security to person or companies that perform labor or furnish material to improve real property
what is expiration of lien right and commencement of suit?
IL, the contract lien right will expire two years after completion of that contractor's work, unless they files suit within that time to foreclose the lien
what is lis pendant?
there is often a considerable delay between the thine a lawsuit is filed and the time final judgement is rendered, when any suit is filed that affects title to real estate