front 1 Involuntary lien | back 1 Created by law |
front 2 Voluntary lien | back 2 Created intentionally by a property owner’s action |
front 3 Subordination agreement | back 3 The holder of a superior lien agrees to permit a later lienholder’s interest to take precedence |
front 4 Release of lien | back 4 Filed when lien is paid and title is cleared |
front 5 Encumbrance | back 5 Any charge or claim that attaches to real property and lessens its value or impairs its use. |
front 6 Lien | back 6 Charge or claim against a person’s property made to enforce monetary payment |
front 7 Priority of liens | back 7 First to record, first in right |
front 8 An involuntary lien is created by law and is statutory (not equitable). | back 8 false |
front 9 An equitable lien arises out of common law. | back 9 true |
front 10 Can property be sold for nonpayment of taxes, even if the current owner was not aware of the debt against the property? | back 10 yes |
front 11 Can there be a property tax lien if it is not filed in the public record? | back 11 yes |
front 12 Is it possible for the present owner of the house to reclaim it, even if there is a tax sale? | back 12 Yes, depending on state law |
front 13 The process involved in imposing property taxes is generally the same
for most taxing districts. Put each step in its proper order.
| back 13 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. |
front 14 Ad valorem tax | back 14 A general real estate tax |
front 15 Assessment | back 15 Real property valuation process |
front 16 Equalizing factor | back 16 Used to achieve conformity in tax assessments |
front 17 The general real estate tax is an ad valorem tax. | back 17 true |
front 18 Tax liens usually are given the lowest priority over all other liens against a property. | back 18 false |
front 19 Specific | back 19 Vendor or vendee lien Real estate tax lien |
front 20 General | back 20 Judgment lien |
front 21 Involuntary | back 21 Mechanic's lien |
front 22 Voluntary | back 22 Mortgage lien |
front 23 When any suit that affects title to real estate is filed, a special notice, called a lis pendens, can be recorded. | back 23 true |
front 24 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. | back 24 true |
front 25 When is the first installment of a special assessment generally due? | back 25 The year after the assessment is approved |
front 26 When properly recorded in the county where the real estate of the defendant is located, a judgment becomes | back 26 an involuntary lien. |
front 27 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 | back 27 a lis pendens. |
front 28 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? | back 28 Tax lien |
front 29 A lien that arises as a result of a judgment is which type of lien? | back 29 general |
front 30 What is the difference between a general lien and a specific lien? | back 30 A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor’s property. |
front 31 Which tax targets homeowners in particular? | back 31 real property tax |
front 32 A general lien affects the debtor's property, | back 32 both real and personal. |
front 33 A provider of construction materials may give constructive notice of his unpaid invoices by | back 33 obtaining a mechanic’s lien against the subject property. |
front 34 Which statement is TRUE of both a mortgage lien and a judgment lien? | back 34 it involves a debtor- creditor relationship |
front 35 What type of judgment establishes the amount a debtor owes and provides for money to be awarded? | back 35 money judgement |
front 36 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 | back 36 record a notice of the lien and file a court suit within the time required by state law. |
front 37 a mechainc's lien is properly classified as | back 37 a specific lien. |
front 38 Which lien affects all real and personal property of a debtor? | back 38 general |
front 39 Which of the following is a specific, involuntary, statutory lien? | back 39 Real estate tax lien |
front 40 A lien is created in which of the following ways? | back 40 EquitableB)VoluntaryC)InvoluntaryD)All of these |
front 41 If a property owner believes an error was made in determining the assessed property value, the owner can | back 41 present the objection to a local board of appeal or review. |
front 42 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 | back 42 $4,800. |
front 43 All of the following are true statements about real estate tax liens EXCEPT | back 43 tax liens have less priority than mortgage liens after a foreclosure. |
front 44 If there are inequalities in statewide tax assessments, some jurisdictions might apply | back 44 an equalization factor. |
front 45 Which lien usually would be given highest priority in disbursing funds from a foreclosure sale? | back 45 Real estate taxes due |
front 46 A written agreement between lienholders to change the priority of a mortgage is | back 46 a subordination agreement. |