Flashcards in Chapter 13 Yellow text RE Taxes and other Liens Deck (18)
a charge or claim against a person's property made to enforce the payment of money.
or collateral, something of value that the borrower promises to give the lender if the borrower fails to repay the debt.
is created intentionally by the property owner's action, ie. a mortgage loan.
not a matter of choice, it is created by law and maybe either statutory or equitable.
is created by statute ie a tax lien, it exists without any action by the property owner.
arises out of common law. A court-ordered judgement that requires a debtor to pay the balance on a delinquent charge account and which can be filed in the county where the debtor owns property, would create an involuntary equitable lien one the debtor's RE.
affect all the property, both real and personal, of a debtor.
estate and inheritance taxes,
When does a lien attach to real property?
At the moment it is filed and recorded.
are secured by specific property and affect only that particular property.
real estate tax liens
belonging to a vendor (seller) for the unpaid purchase price of the property, when the vendor has not taken any other lien or security, such as a mortgage, beyond the personal obligation of the purchaser.
Effect of Lien on a Title
Once in place the lien runs with the property,
It will bind all successive owners until the lien is paid or settled and the title is cleared by the filing of a RELEASE OF LIEN by the lien holder.
Priority of Liens
refers to the order in which claims against the property will be satisfied if the property is sold by the debtor.
First to record, first in right.
one that comes after an earlier lien. can foreclose on a property but the property will still be subject to the lien or liens with higher priority.
Real Estate Taxes and Special assessments generally take priority
written agreements between lien holders to change the priority of mortgage, judgement, and other liens. Under Subordination the holder of a superior or prior lien agrees to permit a later lienhloder's interest to take precedence.
General RE tax
an Ad valorem tax
ad valorem tax
Ad valorem tax
according to value, based on the value of the property being taxed and are specific, involuntary statutory liens