Flashcards in Real Estate Taxes and Other Liens Deck (13)
created intentionally by the property owner's action, such as when someone takes out a mortgage loan.
not a matter of choice: It is created by law. It may be either statutory or equitable
created by statute. A real estate tax lien, for example, is an involuntary, statutory lien. It is created by statute without any action by the property owner.
arises out of common law. It is created by a court based on fairness. A court-ordered judgment that requires a debtor to pay the balance on a delinquent charge account, for instance, would be an involuntary, equitable lien on the debtor's real estate.
affect all the property, both real and personal, of a debtor. This includes judgments, estate and inheritance taxes decedent's debts, corporate franchise taxes, and Internal Revenue Service taxes.
are secured by specific property and affect only that particular property.
written agreements between lien holders to change the priority of mortgage, judgment, and other liens.
equitable right of redemption
delinquent taxpayer can redeem the property any time before the tax sale.
statutory right of redemption
a period of redemption after the tax sale.
local improvement district (LID)
A LID is a specific geographical area formed by a group of property owners working together to fund needed capital improvements.
writ of execution
To enforce a judgment, the creditor must obtain a writ of execution from the court.
A writ of execution directs the sheriff to seize and sell as much of the debtor's property as is necessary to pay both the debt and the expenses of the sale.
A lis pendens is not itself a lien, but rather notice of a possible future lien.
Recording a lis pendens notifies prospective purchasers and lenders that there is a potential claim against the property.