Chapter 13 Yellow text RE Taxes and other Liens Flashcards Preview

MA RE Licenscure Exam > Chapter 13 Yellow text RE Taxes and other Liens > Flashcards

Flashcards in Chapter 13 Yellow text RE Taxes and other Liens Deck (18)
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1

Lien

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

2

Security

or collateral, something of value that the borrower promises to give the lender if the borrower fails to repay the debt.

3

Voluntary Lien

is created intentionally by the property owner's action, ie. a mortgage loan.

4

involuntary lien

not a matter of choice, it is created by law and maybe either statutory or equitable.

5

Statutory lien

is created by statute ie a tax lien, it exists without any action by the property owner.

6

Equitable lien

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.

7

General Liens

affect all the property, both real and personal, of a debtor.
Includes:
judgements,
estate and inheritance taxes,

8

When does a lien attach to real property?

At the moment it is filed and recorded.

9

Specific Liens

are secured by specific property and affect only that particular property.
Include:
Vendor's liens
mechanics' liens
Mortgage liens
real estate tax liens
special assessments
utilities

10

Vendor's 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.

11

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.

12

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.

13

Junior Lien

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

14

subordination agreements

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.

15

General RE tax

an Ad valorem tax
specific
involuntary
statutory

16

General Taxes

Specific
Involuntary
Statuary
ad valorem tax

17

Ad valorem tax

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

18

Exemptions from General Taxes

certain RE is exempt from taxes:
cities,
municipal organizations
st and fed governments
religious and charitable organizations
hospitals
educational institutions