Chapter 5: Liens TEST

The current market value of a property is $335,000. for tax purposes, it is assessed at 40 percent of market value. The tax rate is $4 per $100 of assessed value. What is the amount of the tax due/ a. $5,360 b. $5,625 c. $5,705 d. $5,740

a. $5,360

Mechanics liens must be filed within _____ of job completion a. 4 b. 6 c. 1 d. 2

a. 4

Which f the following is a voluntary lien? a. mortgage lien b. estate tax lien c. real estate tax lien d. judgment lien

a. mortgage lien

The assessed value is based on: a. sales price of comparable properties b. tax adjustment of the property c. board of appeals evaluation d. market value

a. sales price of comparable properties

Normally, the priority of general liens is determined by: a. the order in which they are filed or recorded b. the order in which the cause of action arose c. the size of the claim d. the court

a. the order in which they are filed or recorded

Debts that are incurred by an individual and become liens against all real property owned by that person are: a. voluntary liens b. specific liens c. fiduciary encumbrances d. special assessments

a. voluntary liens

The Current value of a property is $248,500. The property is assessed at 40% of its current value, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed value, what is the amount of tax due on the property? a. $5,640 b. $5,964 c. $51,600 d. $52,400

b. $5,964

What is the rate assessment in most of Illinois? a. 15 percent of fair market value b. 33.33% of fair market price c. 33.33% of sale price d. 15 percent of average assessed valuation

b. 33.33% of fair market price

When a lien against a parcel of real estate may result from a lawsuit currently before the court, one examining the public records would look for: a. the chain of title b. a lis pendens c. a suit to quiet title d. a judgment lien

b. a lis pendens

Which of these is a lien on real estate? a. an easement b. a recorded mortgage c. an encroachment d. a restrictive covenant

b. a recorded mortgage

In Illinois, when does a judgment become a general lien on a defendant's real and personal property? a. seven years after it is recorded in the Illinois Office of Title and Recordation b. at the time it is recorded in the county recorder's office c. six months after judgment is entered in the county record d. as soon as all creditors and lien holders receive written notice by certified mail

b. at the time it is recorded in the county recorder's office

George owns a principal place of residence and a duplex. He pays the property taxes on his home, but fails to pay the property taxes on the duplex. George may find that a lien has been placed against his: a. home b. duplex c. home and duplex d. home, duplex and personal property

b. duplex

A mechanics lien would be properly classified as a(n): a. equitable lien b. involuntary lien c. general lien d. unstatutory lien

b. involuntary lien

When poorly recorded int he county where the real estate of the defendant is located, a judgment becomes a(n): a. voluntary lien b. involuntary lien c. specific lien d. juried lien

b. involuntary lien

Which of the following is true of the Illinois homestead exemption? a. it exempts all of a homeowner's property from real estate taxes b. it reduces the assessed value of certain residential properties c. it does not apply to homeowners over the age of 65 d. it shelters up to $15,000 of a homeowner's land buildings from creditors

b. it reduces the assessed value of certain residential properties

Specific liens include all of the following except for: a. real estate taxes b. judgments c. mechanics lien d. special assessments

b. judgment

All of the following are specific liens EXCEPTS: a. real estate taxes b. judgments c. mortgages d. mechanic's liens

b. judgments

A mechanic's lien can be filed against an owner's real estate by a(n): a. real estate salesperson claiming part of the broker's commission b. lumber company furnishing materials ordered by the property owner c. real estate broker claiming a commission under a rejected offer d. individual who obtained a judgment against the property owner

b. lumber company furnishing materials ordered by the property owner

Which of the following liens does not need to be recorded to be valid? a. mortgage lien b. real estate tax lien c. judgment lien d. is pendens lien

b. real estate tax lien

All of the following are entitled to a lien on property in Illinois, EXCEPT: a. commercial real estate brokers b. residential real estate brokers c. subcontractors d. general contractors

b. residential real estate brokers

Mechanic's liens are based on: a. federal law b. state law c. common law d. case law

b. state law

Gordon has defaulted in the payment of several of his debts, and the court has ordered his property sold to satisfy them. A title search revealed several outstanding liens against the property. Which of the following liens has first priority? a. the outstanding first mortgage lien dated and recorded one year ago b. the current year's real estate tax lien c. the judgment lien rendered and recorded last month d. the mechanic's lien for work started two months before the mortgage was recorded

b. the current year's real estate tax lien

What would a judgment, a lis pendens notice and a foreclosure have in common? a. they are all voluntary liens b. they are all involuntary liens c. they are liens but would not create a cloud on the title d. they are all general liens

b. they are all involuntary liens

If the market value of property is $584,500 and the assessed ratio is 40%, what are the monthly taxes if the tax rate is 30 mills? a. $5,887.25 b. $5,942.50 c. $51,600 d. $52,400

c. $51,600

Which of the following is NOT a specific lien? a. ad valorem taxes b. mechanic's lien c. IRS lien d. special assessment

c. IRS lien

What is the difference between a general and a specific lien? a. a general lien cannot be enforced in court, while a specific lien can be enforced b. a specific lien is held by one person, while a general lien is held by at least two persons c. a general lien covers all of the debtor's property, while a specific lien covers only a certain piece of real property d. a specific lien covers real estate, while a general lien covers personal property

c. a general lien covers all of the debtor's property, while a specific lien covers only a certain piece of real property

At which of the following sales do interested parties try to purchase the tax lien to a property? a. scavenger b. forfeiture c. annual d. general

c. annual

Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt? a. real estate tax lien b. mechanic's lien c. judgment lien d. assessment lien

c. judgment lien

A mechanics lien can be placed on: a. real and personal property b. personal property only c. real property only d. neither real and personal property

c. real property only

After real estate taxes have been sold by the state or county to satisfy a delinquent tax lien, the defaulted owner usually has a right to: a. have the sale canceled by paying the back taxes and penalties b. pay his or her creditors directly and have their liens removed c. redeem the property within the time specific by law d. record a notice of non-responsibility for the unpaid taxes

c. redeem the property within the time specific by law

In Illinois, a contractor's right to a lien expires how long after completion of the work, if no suit is filed within that time? a. 6 months b. 1 year c. 18 months d. 2 years

d. 2 years

A court orders real estate to be sold to satisfy an unpaid mortgage lien is an action known as a(n): a. encumbrance b. attachment c. seizure d. foreclosure

d. foreclosure

Judgement liens are: a. specific liens b. voluntary liens c. priority liens d. involuntary liens

d. involuntary liens

When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n): a. deficiency judgment b. lis pendens c. estoppel certificate d. mechanic's lien

d. mechanic's lien

Taxes levied on a property owner to pay to install sidewalks or sewers are called: a. ad valorem taxes b. general property taxes c. special excise taxes d. special assessments

d. special assessments