Unit 10 Flashcards
(28 cards)
Lien
Charge or claim against property that is made to enforce the payment of money; encumbrance on the owner’s title
Security (Collateral)
something of value that the borrow promises to the lender if the borrower fails to repay the debt
Mechanic’s Lien
specific; involuntary; an effort to recover payment for work performed; file lien notice within 4 months of completion and send notice within 10 days. File suit within 2 years
Encumbrance
charge or claim that attaches to real property and lessens its value or impairs it’s use. Can transfer since its attached to property. Lien is different because it s financial and attaches because of a debt
voluntary lien
intentional; ex mortgage or home equity loan
involuntary lien
created by law
statutory - tax lien - created by laws
equitable - created by the court to ensure payment of a judgment by agreement; ex. credit card debt; judgement in a car accident
General lien
affects all the property, real and personal, of a debtor
lien on real property
attached when filed
lien on personal property
when seized or lieved on
specific lien
secured by specific property, mortgage loans, tax liens; also secure personal property - car loan
Priority of Liens
usually go in recording order. EXCEPT real estate taxes and special assessments generally take priority
Subrogation agreements
written agreement to change the priority of the liens
Ad Valorem Taxes
REAL ESTATE TAXES. According to value are based on the value of property being taxed. Charged specific, involuntary, statutory
Liens by government or municipalities
Exemptions from taxes
municipal organizations (schools, parks etc) cities and counties state and federal government religious and charitable orgs hospitals educational institutions
IL Property Taxes Adjusted/Exemptions
Owner occupied - homestead exemption $6000
Senior exemption over 65 - $4000
Senior freeze of assessment if income under 55,000
home improvement up to 4 years and $75,000
Other tax concessions
Assessment
Generally based on sales price of comparable properties
33% of fair market value except Cook county (which is sliding scale of 10-25%)
Valued by county or township assessor
Equalization
assessed values compared with selling prices and then use equalization. Goal to achieve uniformity
Full reassessment every 4 years
Budget & Tax Rates
Proposed expenses / total assessed property values = tax rate
Appropriation
the way a taxing body actually authorizes. involves adopting an ordinance or law
Tax Levy
formal action taken to impose a tax
IL Tax Bills
Due 6/1 and 9/1 except Cook County
Penalty is 1.5% per month penalty
Enforcement of Tax Liens
delinquent can be collected thru tax sale. 3 types of sales
annual tax sale - redemption period of 2.5 years
forfeiture sale
scavenger sale (after unpaid 2 years/ redemption 6 months)
Special Assessment
improvements specific, statutory
SSAs
New development, taxing district by ordinance
