Created by law
Created intentionally by a property owner’s action
The holder of a superior lien agrees to permit a later lienholder’s interest to take precedence
Release of lien
Filed when lien is paid and title is cleared
Any charge or claim that attaches to real property and lessens its value or impairs its use.
Charge or claim against a person’s property made to enforce monetary payment
Priority of liens
First to record, first in right
An involuntary lien is created by law and is statutory (not equitable).
An equitable lien arises out of common law.
Can property be sold for nonpayment of taxes, even if the current owner was not aware of the debt against the property?
Can there be a property tax lien if it is not filed in the public record?
Is it possible for the present owner of the house to reclaim it, even if there is a tax sale?
Yes, depending on state law
The process involved in imposing property taxes is generally the same
for most taxing districts. Put each step in its proper order.
Place the objects in the correct order from top to bottom by dragging them.
1. A budget is adopted by each taxing district for the coming fiscal year.
2. The funds needed are appropriated by ordinance.
3. A tax levy is agreed to by a vote of the taxing district’s governing body.
4. Each property owner’s tax bill is computed by applying the tax rate to the assessed value of the property.
5. Tax bills are delivered to property owners, indicating the due dates for payments.
Ad valorem tax
A general real estate tax
Real property valuation process
Used to achieve conformity in tax assessments
The general real estate tax is an ad valorem tax.
Tax liens usually are given the lowest priority over all other liens against a property.
Vendor or vendee lien
Real estate tax lien
When any suit that affects title to real estate is filed, a special notice, called a lis pendens, can be recorded.
If improvements that were not ordered by the property owner have commenced, the property owner should execute a document called a notice of nonresponsibility to be relieved from possible mechanic's liens.
When is the first installment of a special assessment generally due?
The year after the assessment is approved
When properly recorded in the county where the real estate of the defendant is located, a judgment becomes
an involuntary lien.
A lien against a parcel of real estate may result from a lawsuit currently before the court. Notice of a possible future judgment could be found by examining the public records for
a lis pendens.
A local attorney was appointed guardian of a property owner with no known relatives, who required care in a nursing home. The property owner has no will or any money available for expenses and hasn't paid any property taxes in the past four years. What would the state file to eventually collect the unpaid back taxes?
A lien that arises as a result of a judgment is which type of lien?
What is the difference between a general lien and a specific lien?
A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor’s property.
Which tax targets homeowners in particular?
real property tax
A general lien affects the debtor's property,
both real and personal.
A provider of construction materials may give constructive notice of his unpaid invoices by
obtaining a mechanic’s lien against the subject property.
Which statement is TRUE of both a mortgage lien and a judgment lien?
it involves a debtor- creditor relationship
What type of judgment establishes the amount a debtor owes and provides for money to be awarded?
A mechanic's lien claim arises when a contractor has performed work or provided material to improve a parcel of real estate on the owner's order and the work has not been paid for. Such a contractor has a right to
record a notice of the lien and file a court suit within the time required by state law.
a mechainc's lien is properly classified as
a specific lien.
Which lien affects all real and personal property of a debtor?
Which of the following is a specific, involuntary, statutory lien?
Real estate tax lien
A lien is created in which of the following ways?
EquitableB)VoluntaryC)InvoluntaryD)All of these
If a property owner believes an error was made in determining the assessed property value, the owner can
present the objection to a local board of appeal or review.
A specific parcel of real estate has a market value of $160,000 and is assessed for tax purposes at 75% of market value. The tax rate for the county in which the property is located is 40 mills. The tax bill will be
All of the following are true statements about real estate tax liens EXCEPT
tax liens have less priority than mortgage liens after a foreclosure.
If there are inequalities in statewide tax assessments, some jurisdictions might apply
an equalization factor.
Which lien usually would be given highest priority in disbursing funds from a foreclosure sale?
Real estate taxes due
A written agreement between lienholders to change the priority of a mortgage is
a subordination agreement.