CHAPTER ONE ENCUMBERANCES: LIENS

Question 1

A lien is a form of ____ that serves to create a security interest in specific, identifiable real property, for payment of the property owner’s debt or other financial obligation

Answer 1

encumbrance

Question 2

____- Anything which affects or limits the fee simple title to or value of property, e.g., mortgages or easements.

Answer 2

Encumbrance

Question 3

Liens can be : 
1. 
2. 
3. 
4.

Answer 3

1. general
2. specific
3. voluntary
4. involuntary

Question 4

____ Lien - A lien on all the property of a debtor.

____ Lien- A lien that attaches to one specific property only.

Answer 4

General

Specific

Question 5

____lien- Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.

____ lien- A lien imposed against property without consent of an owner.

Answer 5

Voluntary Lien

Involuntary Lien

Question 6

The most common type of voluntary lien is a ___ lien.

The property owner agrees to the lien as a condition of being approved to borrow funds to purchase real estate.

Answer 6

mortgage

Question 7

Mortgage liens are voluntary and also ____ liens. They can’t go after your home or assets.

Answer 7

specific - attached to one piece of property.

Question 8

Types of involuntary liens
___- lien thats imposed on real property by the court system. Occurs during civil and criminal judgement against the property. AKA “judgement liens” It’s a legal claim on all property and can let the creditor sell the property for payment amount of the defaulted loan.

___- arise by statutes laws now, equitable liens are created by lawsuit- statutory liens are created automatically by law. Common types: tax liens, landlords liens, artisan’s liens, mechanics lien, vendor’s lien, and warehouseman’s lien

Answer 8

equitable

statutory

Question 9

___ lien- A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

involuntary (statutory) and specific lien

Answer 9

Mechanic’s Lien

Question 10

___ lien. A lien imposed by law upon a property to secure the payment of taxes.

involuntary (statutory) and specific

Answer 10

Tax Lien

Question 11

___ of ____ - The order in which liens are given legal precedence or preference.

property liens have priority in the order in which they were filed first.

tax liens - highest priority
then comes mortgage liens.

Answer 11

Priority of Lien