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Unit 10: Real Estate Taxes and Other Liens > Key terms > Flashcards

Key terms Flashcards

(96 cards)

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1
Q

A charge or claim against property that is made to enforce the payment of money

A

Lien

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2
Q

Security is also called ___.

A

Collateral

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3
Q

something of value that the homeowner promises to give the lender if the borrower fails to repay the debt

A

collateral

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4
Q

something of value given to secure repayment of debt

A

Collateral

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5
Q

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

A

encumbrance

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6
Q

Encumbrances are attached to property and therefore ___ along with it.

A

transfer

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7
Q

Type of lien that is created intentionally by the property owner’s action

A

Voluntary

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8
Q

A mortgage loan is an example of what type of lien?

A

voluntary

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9
Q

What type of lien is not created by choice, but instead created in a court of law and is either statutory or equitable?

A

Involuntary

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10
Q

What type of lien is created by statute?

A

Statutory

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11
Q

Real estate taxes are examples of what types of liens?

A

Involuntary & statutory

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12
Q

What type of lien is created by a court to ensure the payment of a judgment as well as by agreement?

A

Equitable

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13
Q

What type of lien affects all the property (both real and personal) of a debtor?

A

General

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14
Q

Judgments, estate and inheritance taxes, decedents debts, corporate franchise taxes, and IRS taxes are all ___ liens.

A

general

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15
Q

When does a lien attach to real property?

A

The moment it is filed

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16
Q

When does a lien attach to personal property?

A

When levied on or seized by a sheriff

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17
Q

What type of lien is secured by a certain property and affects only that particular property?

A

Specific

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18
Q

Mechanic’s liens, mortgage liens, real estate tax liens, and liens for special assessments and utilities are all ___ liens.

A

specific

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19
Q

What type of lien can secure personal property, such as when placed on a car to secure payment of a car loan?

A

Specific

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20
Q

Written agreements between lienholders to change the priority of mortgage, judgment, and other liens.

A

Subordination agreements

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21
Q

Under a(n) ___, the holder of a superior or prior lien agrees to permit a junior lienholder’s interest to move ahead of her lien.

A

Subordination agreement

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22
Q

A charge against property created by operation of law

A

Tax lien

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23
Q

___ are based on the value of the property being taxed.

A

General real estate taxes

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24
Q

General real estate taxes are also called ___ taxes.

A

Ad valoreum

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25
General real estate taxes are ___, ___, and ___ lliens.
Specific, involuntary, statutory
26
___ are a favored source of revenue for local governments because real estate cannot be hidden and is relatively easy to value.
Real estate property taxes
27
Real estate is valued for tax purposes by county or township appraisers. This official valuation process is called ___.
Assessment
28
A property's ___ generally is based on the sales prices of comparable properties
Assessed values
29
In Cook County, real property is assessed based on a ___ of percentages of ___.
Sliding scale Fair market value
30
In Cook County, real property is assessed based on a sliding scale of percentages of fair market value ranging between ___% to ___%.
10% to 25%
31
In all Illinois counties except for cook, real property is assessed at ___/___% of fair market value.
331/3%
32
In some jurisdictions, when it is necessary to correct inequalities in statewide tax assessments, a(n) ___ factor is used to achieve uniformity
Equalization
33
A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments.
Equalization factor
34
The ad valorem tax is based on what value?
Equalization factor
35
A(n) ___ may be applied to raise or lower assessments in a particular district or county.
Equalization factor
36
The basic assessed value of each property in the area is multiplied by the equalization factor to acquire a(n) ___.
Equalized assessment
37
Tax rates are expressed in which 2 ways?
1) Dollars 2) Milage (mills)
38
Mills is another word for ___
milage
39
Quadrennial basis
4-year basis
40
Triennial basis
3-year basis
41
Formal ___ is the way a taxing body actually authorizes the expenditure of funds and provides for the sources of funding.
Appropriation
42
The formal action taken to impose the tax, usually by a way of vote of the taxing district's governing body
Tax levy
43
In Illinois, tax payment due dates are also called ___ dates.
penalty
44
If a person is late on their property taxes in Illinois after the penalty date, what is the penalty?
1.5% per month added to any unpaid amount
45
Real estate taxes that have remained delinquent for the statutory period can be collected through...
a tax sale
46
A court ordered sale of real property to raise money to cover delinquent taxes
Tax sale
47
An instrument given to a purchaser after the expiration of redemption rights
Tax deed
48
Tax deeds must be recorded within ___ after the expiration of redemption period or else it is void with no right of reimbursement.
1 year
49
Special assessments are also called ___.
Improvement taxes
50
Taxes levied on real estate to fund public improvements to the property
Special assessments
51
Who is required to pay special assessments?
Property owners living nearest to the improvement
52
Special assessments are always ___ and ___.
Specific Statutory
53
Special assessments can either be ___ or ___.
Involuntary voluntary
54
In a voluntary special assessment, the share is determined either on a(n) ___ basis or on a(n) ___ basis.
Fractional or cost-per-front-foot basis
55
___ refers to wider lots incurring greater cost of special assessments than narrow lots for street paving and curb & sidewalk installation
cost-per-front-foot basis
56
___ refers to an equally divided share in cost of special assessments.
Fractional basis
57
A(n) ___ is also called a deed of trust lien
mortgage lien
58
A voluntary lien on real estate given to a lender by a homeowner as security for a real estate loan
Mortgage lien
59
A specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property
Mechanics' lien
60
In Illinois, mechanic's liens are ___ in addition to being specific & involuntary.
Statutory
61
In order to be entitled to a mechanic's lien, the person who did the work must have a(n) ___ with the owner or owner's authorized representative.
contract
62
Mechanic's liens take priority over a previously recorded lien if...
the work done has enhanced the value of the property
63
___ are collected by the landowner from each contractor and subcontractor to create a continuing record that all lien claimants have released their lien rights
Lien waivers
64
An order issued by a court that settles and defines the rights and obligations of the parties to a lawsuit
judgment
65
When a judgment establishes the amount a debtor owes and provides for money to be awarded, it is called a(n) ___.
money judgment
66
judgments are ___, ___, and ___ liens on real and personal property owned by the debtor.
general, involuntary, and equitable
67
When does a judgment become a general lien on all of the dependent's real and personal property?
Time the judgment is recorded
68
For a lien to be effective in another county, a(n) ___ of judgment must be recorded in that county.
Memorandum
69
How long are judgment liens effective for in Illinois?
7 years
70
To enforce a judgement, the creditor must obtain a(n) ___ from the court
Writ of execution
71
A(n) ___ directs the sheriff to seize and sell as much of the debtor's property as is necessary to pay both the debt and expenses of the sale.
Writ of execution
72
When property is sold after a judgment, the debtor should demand a(n) ___ to clear the record.
Satisfaction of judgment
73
When any suit is filed that affects title to real estate, a(n) ___ is recorded.
Lis pendens
74
A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or federal court
Lis pendens
75
A lis pendens is a lien. True or false?
False
76
A(n) ___ is a notice of a possible future lien
Lis pendens
77
Recording a(n) ___ notifies prospective purchasers and lenders that there is a potential claim against the property.
Lis pendens
78
To prevent a debtor from conveying title to such previously unsecured real estate while a court suit is being decided, a creditor may seek a(n) ___.
Writ of attachment
79
Prevents a debtor from conveying a title to previously unsecured real estate while a court suit is being decided
Writ of attachment
80
Through ___, the court retains custody of the property until the suit concludes.
Writ of attachment
81
Federal taxes on a decedents real & personal property
Federal estate taxes
82
State-imposed taxes on a decedents real & personal property
Inheritance taxes
83
A real estate owner who is charged with a crime for which he or she must face trial may post bail in the form of real estate rather than cash. This is what type of lien?
bail bond lien
84
Type of lien that results from a person's failure to pay any portion of federal taxes, such as income and withholding taxes.
Federal tax lien
85
The ___ permits commercial sponsoring brokers to place a lien on property in the amount of the commission they are entitled to receive for leasing, as well as for a sale under a written brogerage agreement in the event they are not paid for their services.
Commercial Real Estate Broker Lien Act
86
Claims of creditors or taxing authorities against the real and personal property of a debtor
Liens
87
___ liens arise from action of the debtor
Voluntary
88
___ liens are created by statute or based on the concept of fairness.
Involuntary
89
How often are real estate taxes levied?
Annually
90
___ protects property owners when debts have been paid
Lien waivers
91
Liens for water charges or other municipal utilities are an example of ___ liens.
Specific
92
Bail bond liens are ___ liens.
Specific
93
The basic homeowner exemption must be applied for how frequently?
Yearly
94
The senior citizen homestead exemption renews ___.
automatically
95
The home improvement exemption gives any homeowner improving their home a(n) ___ delay before the increased home value affects taxes.
4 year
96
Mechanic's liens must be filed within ___ after work was completed.
four months

Unit 10: Real Estate Taxes and Other Liens (2 decks)

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