Chapter 10

Tax lien

A charge against property, created by operation of law. Tax liens and assessments take priority over all other liens

Tax sale

A court-ordered sale of real property to raise money to cover delinquent taxes

Equalization factor

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax is based on this adjusted value

Specific lien

A lien affecting or attaching only to a certain, specific parcel of land or piece or property

Statutory lien

A lien imposed on property by statue Example: Tax lien

Mortgage lien

A lien or change on the property of a martgagor that secures the underlying debt obligations

Involuntary lien

A lien placed on property without the consent of the property owner

Voluntary lien

A lien places on property with knowledge and consent of the property owner

Equitable lien

A lien that arises out of common law

Lis pendens

A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court

Lien

A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale

Mechanic's lien

A statutory lien created in favor of contractors, laborers, and materialmen who have performed work or furnished materials in the erection or repair of a building

General real estate tax

A tax levied according to value, generally used to refer to real estate tax. Also called an ad valorem tax

Special service area (SSA)

A taxing mechanism that can be used to fund a wide range of special or additional services and/or physical improvements in a defined geographic area within a municipality or jurisdiction

Subordination agreement

A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances

Special assessment

Also called improvement taxes.

Tax deed

An instrument given to a purchaser after the expiration of the redemption rights

Encumbrance

Anything that may diminish the value or use an enjoyment of a property Example: mortgage, tax, judgment lien

Lien waiver

Collected by the landowner from each contractor and subcontractor to create a continuing record that all lien claimants have released their lien rights

Estate taxes

Federal taxes on a decedents real and personal property

Scavenger sale

If the taxes have not been paid on a property for two years or more, the property may be sold at a scavenger sale. Buyer not required to pay the tax lien but must pay current taxes

Annual tax sale

If the taxes on a property have not been paid by the due date of the second installment, the county collector can enforce the tax lien and request that the circuit court order a tax sale

Forfeiture sale

If there are no bids on a property at the annual tax sale, the property is forfeited to the state, although title does not really change

Inheritance taxes

State-imposed taxes on a decedents real and personal property

Judgment

The formal decision of a court on the respective rights and claims of the parties to an action or suit. After judgment has been entered and recorded with the country recorder, it usually becomes a general lien on the property of the defendant

General lien

The right of a creditor to have all of a debtor;s property (both real and personal) sold to satisfy a debt

Appropiation

The way a taxing body actually authorizes the expenditure of funds and provides for the sources of the funding

Writ of attachment

To prevent a debtor from conveying title to such previously unsecured real estate while a court suit is being decided , a creditor may seek a writ of attachment, by which the court retains custody of the property until the suit concludes