Unit 15 ~ Real Estate Taxes and Other Liens

General real estate taxes levied for the operation of the government are

Ad valorem taxes. Confusingly, the general real estate tax the ad valorem tax creates a specific lien. The word general in this context, distinguishes this tax form a special assessment for a specific project or neighborhood.

Which lien affects all real and personal property of a debtor?

General. A general lien attaches to all of a debtor's property as opposed to a specific lien, which affects only a specific property.

Priority of liens refers to which of the following?

Its the order in which liens will be paid if property is sold to satisfy a debt. Priority of liens refers to the order in which claims agains a property will be paid off. In general, the rule for priority of liens' is "first come, first served," but there are some exceptions, such as taxes and assessments.

Which of the following is classified as a general lien?

Judgement lien. Judgement is not just on some specific assets but on the assets of the debtor in general.

A buyer purchased a parcel of real estate. Title has passed but to date the buyer has not paid the purchase price in full, as originally agreed. If the seller wants to force payment, which remedy is the seller entitled to seek?

Judgement. The seller could seek a monetary judgement based on a vendors (seller's) lien for unpaid portions of the purchase price not secured by a mortgage.

A general contractor recently filed suite against a homeowner for nonpayment. The contractor now learns that the homeowner has listed the property for sale with a real estate professional . In this situation, which of the following will be the contractor's attorney use to protect the contractor's interest?

Lis pendens. A recorded lis pendens a notice of action pending warns any potential purchaser that a property is subject to a pending legal action. Such a notice might prompt a buyer to consider very

Which of the following is a specific , involuntary statutory lien?

Real estate tax lien. A real estate tax lien is always on a specific piece of realty; it happens without permission of the property owner and so is involuntary; it is created by statute. Therefore, it is specific involuntary and statutory.

Which lien usually would be given highest priority in disbursing funds from a foreclosure sale?

Real estate taxes due.

A lien on real estate made to secure payment for a specific municipal improvement project is which of the following?

Special assessment lien. Specific improvement are paid fro by special assessments.

What is the annual real estate tax on a property valued at 135,000 and assessed for tax purposes at 47,250 with an equalization factor of 125%, when the tax rate is 25 mills?

The answer is 1,477. Tax = assessed value x equalization factor x tax rate. The mill rate = 0.001 ; 25mills = 0.025. Therefore; 47,250 x 124% = 59,062.50 and 59,062.50 x 0.025 = 1,4776.56. the best answer is 1,477

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 country in which the property is located is 40 mills. The tax bill will be

The answer is 4800. A mill is 1/1000 of a dollar; 0.001. The mill rate is the tax on every dollar of the assessed value of property. A rate of 40mills 0.040 is applied to 75% of the 160,000 x75% = 120,000, and 120,000 x 0.040 = 4800

Which statement is TRUE of both a mortgage lien and a judgement lien?

The answer is it involved a debtor-creditor relationship. Both involve a debtor-creditor relationship. A mortgage lien is specific, not general, and is voluntary and entered by the lender. The lien is executed by legal action upon default of the borrower.

Which tax targets homeowners in particular?

The answer is real property tax. The real property (ad valorem) tax falls on those who own real property, such as homeowners

Which statement MOST accurately describes special assessment liens?

The answer is they take priority over mechanic's lien. Real estate taxes and special assessments take priority over all other liens

A mechanic's lien would be available to all of the following EXCEPT

a real estate professional. Contractors, subcontractors and surveyors all have standing to seek a mechanic's lien. Real estate professional typically do not have the right to place liens on property they have sold and for which they have not been paid the commission owed to them.

Which of the following creates a lien on real estate?

an unpaid mortgage loan. Encumbrances such as easements and encroachments do not involve liens. A license is a personal, revocable privilege. A mortgage agreement creates a voluntary, specific lien

All of the following probably would be exempt from real estate taxes EXCEPT

apartment buildings. Properties such as public hospitals and public parks, as well as religious institutions such as synagogues and churches, are usually exempt from real estate taxes. Apartment building typically operated as investment properties are taxed.

Which of the following is a voluntary, specific lien?

is a mortgage lien. A mortgage lien is created voluntarily by the borrower. The borrower names specific property in the mortgage agreement that serves as security for the lender.

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. In this situation, the contractor has specific, statutory rights that are limited to the real property for which the contractor performed work or supplied materials.

The right of a defaulted taxpayer to recover property before its sale for unpaid taxes is

the equitable right of redemption. An equitable right of redemption exists because it is only fair (equitable) that a property owner be permitted to save the property before a tax sale or even a foreclosure sale by paying the amount owned in full.