Section 1 - Chapter 10 Flashcards Preview

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Flashcards in Section 1 - Chapter 10 Deck (24):
1

lien

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

2

security

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

3

mechanic's lien

recover payment for work performed

4

encumbrance

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

5

all liens are encumbrances but...

not all encumbrances are liens

6

voluntary lien

created intentionally by property owner's actions (like a mortgage)

7

involuntary lien

created by law

8

statutory lien

created by statute

9

equitable lien

created by court to ensure payment of a judgement as well as by agreement

10

general liens

affect all real and personal property

11

specific lien

only affects a certain piece of property

12

priority of liens

usually, "first to record, first in right" - except for real estate taxes and special assessments

13

subordination agreement

agreements to change priority of liens

14

general real estate tax

based on value of property (specific, involuntary, statutory liens)

15

annual sale

court order that allows sale of tax lien, not the property itself

16

forfeiture sale

if no bids at annual sale, then property forfeited to state - current owner or new owner can buy it back

17

scavenger sale

if taxes haven't been paid in 2 years, a new owner may buy it (new owner doesn't have to pay tax lien, but must pay current taxes)

18

special assesment

taxes levied on real estate to fund public improvements to the property (like streets, curbs, etc)

19

mortgage lien (deed of trust)

voluntary lien given to lender by borrower for a real estate loan

20

mechanics lien

specific involuntary lien that gives security to companies who perform labor to improve real property

21

judgment

order issued by a court that settles and defines rights and obligations of the parties to a lawsuit (general, involuntary, equitable lien)

22

estate and inheritance taxes

statutory, involuntary, general liens that encumber a deceased person's real and personal property

23

bail bond lien

specific, statutory, voluntary lien - bail is the property

24

federal (irs) tax lien

general, statutory, involuntary lien on personal and real property for not paying taxes