4B LAW AND PRACTICE- EXAM
public, and the property owner given just compensation Explanation The government may condemn private property for public use if the owner is given just compensation.
Before the government can exercise the right of eminent domain, the use must be: public, and the property owner given just compensation practical, and the property owner given just compensation for some use of the government for the order, safety, health, morals, and general welfare of the government and governmental employees
the day the work first began Explanation Mechanic's liens have priority as of the date material was delivered or work began, rather than the date recorded.
Mechanic's liens have a priority date of: the day the judgment was issued the day the work first began the day the work was completed the day the judgment was recorded
foreclosure Explanation A lien on a property gives the lienee (the lender) a right of foreclosure if the lien is not paid. Foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
A lien is a monetary claim that if unpaid awards the lien holder the right of: foreclosure eviction ownership possession
involuntary lien Explanation An involuntary lien is created by law without any action on the owner's part. A voluntary lien, just the opposite, is created by the owner -- this includes a mortgage lien or deed of trust lien.
A lien placed on the property without the consent of the owner is known as a(n): involuntary lien deed of trust lien voluntary lien mortgage lien
judgment lien Explanation A judgment lien (a general lien) is a lien that covers all real and personal property of the debtor.
A lien that covers all real and personal property of the debtor within the county where recorded is a: mechanic's lien judgment lien writ of execution lis pendens Explanation A judgment lien (a general lien) is a lien that covers all real and personal property of the debtor.
The date the lien is recorded determines priority except mechanic's liens Explanation The date that the lien is recorded determines its priority, except for a mechanic's lien. The priority for a mechanic's lien is determined by the date the work commenced or the materials delivered.
A lien's priority is determined by: The size of the lien determines priority A mechanic's lien always has first priority The date of the lien determines priority The date the lien is recorded determines priority except mechanic's liens
all of the above equitable lien involuntary lien specific lien Explanation Mechanics liens are levied against a specific parcel of land, not all the owners assets. It is involuntary because the owner has no choice. It is equitable because the lien holder does not have possession of the property the lien is against.
A mechanic's lien is properly classified as a(n): equitable lien involuntary lien specific lien all of the above
lis pendens Explanation Lis pendens is Latin for "litigation pending," which will help you to remember that while a lis pendens isn't a lien, it is notice that litigation is pending, let the buyer beware (caveat emptor).
A recorded legal document that gives constructive notice that an action affecting a certain property has been filed in court is called: habendum clause general warranty deed estoppel certificate lis pendens
easement in gross Explanation A utility company has an easement in gross to service its equipment. A government authority or private service provider may acquire a gross easement over private land by virtue of the public service it performs. For example, a local authority may have the responsibility of installing and maintaining the sewerage system in an urban area. Merely by the fact that it has that responsibility, usually enshrined in some statute or local laws, gives the authority the right, by virtue of a gross easement, to enter private property to carry out installation and maintenance. The location of the easement will not usually be described precisely, but its general position will be defined by the service route (i.e. the sewer pipes in this example). Power and water lines may also have gross easements linked to them, but drainage and stormwater systems are commonly precisely defined in location and recorded in the title documents for private land.
A utility company has an easement to service its equipment. This is an example of: easement in gross encroachment police power easement by prescription
Judgment Explanation All of the rest apply to a specific property, while a judgment is against an individual and all of their property.
All of the following are examples of a specific lien, EXCEPT: Mortgage Mechanic's lien Judgment Property taxes
Writ of Attachment Explanation Here is a good definition of writ of attachment that I saw on Wikipedia. BTW, Wikipedia is a great resource for the national side of the test, not so much for the State side. Here ya go: "A writ of attachment is a court order to "attach" or seize an asset. It is issued by a court to a law enforcement officer or sheriff. The writ of attachment is issued in order to satisfy a judgment issued by the court. A prejudgment writ of attachment may be used to freeze assets of a defendant while a legal action is pending. Common grounds for obtaining a prejudgment writ of attachment are that a defendant has committed fraud or that a defendant is prepared to hide assets from a court." When a writ of attachement is issued to secure a proprerty prior to a judgment, the plaintiff obtaining the writ must file a bond to protect the defendant against any loss caused by the attachment in the event the plaintiff loses the case.
An encumbrance issued by a court on a property of a defendant in a pending lawsuit for money damages is called a/n: Writ of Seizure Writ of Security Lis Pendens Writ of Attachment
a lien Explanation A lien is a charge against a property -- a financial encumbrance. The other easements listed here do not deal with finances, but are considered usage encumbrances and affect the way in which the land may be USED. Alternatively, they may be divided into those that affect title (ex: lien, legal or equitable charge) or those that affect the use or physical condition of the encumbered property (ex: restrictions, easements, encroachments).
An encumbrance that affects the title, usually related to money, is known as: a lien an easement in gross an easement by necessity an easement by prescription
mechanic's lien Explanation A mechanic's lien does not exist unless it is recorded. The mechanic's lien is one of the few documents that must be recorded to be legally effective. Deeds are almost always recorded to make it difficult for someone to contest that the transfer of ownership occurred and to make it easier to prove ownership. It's just that it is not legally required to record a deed. For a deed to be valid it must have the grantor's signature (the seller), consideration (payment), a description of the property, words of conveyance and the deed must be delivered within the lifespan of the grantor.
An instrument, which requires recordation to be legally effective, is a(n): mechanic's lien agreement to sell real estate will
Current real estate taxes Explanation Real estate taxes always have first priority.
Bob Burnside has defaulted in payment of several debts, and a court has ordered his property sold to satisfy them. A report reveals several outstanding liens against the property. Which has first priority? The outstanding mortgage dated and recorded one year ago Current real estate taxes A mechanic's lien for work that was started two months before the date the mortgage was recorded A court judgment rendered and recorded last month
all three properties Explanation A judgment lien is general, involuntary lien, affecting all properties owned by a debtor in the county where the judgment was recorded, as well as any he acquires subsequent to the judgment
If a debtor owns three pieces of real estate located in the same county, and a judgment is entered against him, it will be a lien against: the property first acquired the property last acquired all three properties homestead property only
the seller Explanation Generally, it is the seller's responsibility to discharge all encumbrances against the property and deliver clear title to the purchaser, but either party could pay the assessment. If the owner of the property refuses to pay, the county could force the sale of the property to satisfy specific involuntary liens.
If the Title Company discovers a delinquent sewer assessment, the party that would normally be required to pay for the portion that is in arrears is: the buyer the seller both the buyer and seller to be settled by mutual agreement
Both Jeff's and Charlie's land have easement rights Explanation Subdividing does not change the easement rights, they are for the land not the individuals. An easement is a certain right to use the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B." Easements are helpful for providing pathways across two or more pieces of property or allowing an individual to fish in a privately owned pond. An easement is considered a property right in itself by common law and is still treated as a type of property in most jurisdictions.
Jeff's land has an easement to cross Bill's property. Jeff subdivides his property and sells to Charlie. Which statement is true? Land benefitting from an easement cannot be subdivided Both Jeff's and Charlie's land have easement rights Jeff's land retains the easement, but Charlie's does not The easement no longer exists
Smith may be liable since he had notice and did nothing Explanation Smith must pay the contractor. He had express notice (the registered letter) that the work was being performed. His failure to respond indicated approval. He may, however, take legal action against Davis. Smith should have provided notification of his non-responsibility as soon as he was notified.
Mr. and Mrs. Davis, tenants, decide to have their apartment redecorated on June 15. Contractor Jones says he will do the job for $4,000 and informs Smith (the property owner), by registered letter, the job will be completed by June 13. Upon completion, Davis tells Jones to see Smith for payment: Smith is not liable since he did not contract with Jones Smith may be liable since he had notice and did nothing Smith is not liable since his wife signed for the registered letter Mr. and Mrs. Davis only are liable
open, hostile, notorious, and continuous Explanation The requirements of title by adverse possession are open, notorious use for the statutory period, hostile to the will of the owner. The adverse possession can be seven years if the adverse possessor pays the taxes during this period and is in possession of the property. The adverse party is called the disseisor, meaning one who dispossesses the true owner of the property. The disseisor must openly occupy the property exclusively, keeping out others, and use it as if it were his own. Generally, the openly hostile possession must be continual (although not necessarily continuous or constant) without challenge or permission from the lawful owner, for a fixed statutory period to acquire title.
Possession under a claim of adverse possession must be: open, notorious, and hostile open, hostile, and continuous notorious, hostile, and continuous open, hostile, notorious, and continuous
ad valorem Explanation Ad valorem means according to value. The higher the value the higher the amount of tax.
Property taxes are also referred to as: ad valorem lis pendens lien pendens ad valium
specific - involuntary liens Explanation If the property tax is unpaid, the tax can be satisfied only from the sale of the specific property upon which the tax is levied. The only voluntary liens are mortgages and deed of trust.
Real estate property taxes are: general - involuntary liens general - voluntary liens specific - voluntary liens specific - involuntary liens
specific lien Explanation A mechanic's lien is levied against a specific piece of land. A mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. In the realm of real property, it is called by various names, including, generically, a construction lien.
Smith Water Hole Company constructed a swimming pool. Upon completion, they filed a lien for non-payment. This was most likely a: general lien specific lien special lien voluntary lien
3123.75 Explanation 255,000 x .35 = 89,250.00/100= 8925x3.50 = 3,123.75
The current value of a property is $255,000, and it is assessed at 35% of its current market value. What is the amount of the real estate tax due on the property if the tax rate is $3.50 per $100 of assessed value? 2039.99 2499 1115.63 3123.75
assessed valuation of the property Explanation The assessed value of property is the County Assessor's determination of a percentage of the true and fair market value of the property.
The tax on a given piece of real property is always determined by multiplying the mill levy by the: selling price assessed valuation of the property mortgage loan value book value
a property tax lien Explanation Tax liens for property taxes generally take priority over all other liens, whereas a tax lien for income taxes do not. The priority for income tax liens is as of the date they were recorded.
The type of lien which takes priority over all other liens, and has the first claim against a property is called: a property tax lien a judgment lien a mechanic's lien a mortgage lien
after 18 years Explanation In Colorado an easement by prescription can be exercised in 18 years. Easement by prescription can vary by state from a period of 7 years up to 21 years.
Unauthorized use of land may mature into an easement by prescription: after 8 years after 18 years after 19 years
A general lien affects all of an individual's property, a specific lien does not Explanation Specific liens are judgments against a specific individual or property, a general lien affects all properties owned, real and personal.
What is the difference between a specific and a general lien? A general lien is less binding than a specific lien A general lien affects all of an individual's property, a specific lien does not General and specific liens are the same as a judgment lien A specific lien affects all of an individual's property, a general lien does not
mechanic's lien Explanation A laborer or material man as well as a contractor may file a mechanic's lien. It is also called a materialman's lien or supplier's lien when referring to those supplying materials.
When a firm furnishes materials for the construction of a house and the firm is not paid, it may file a(n): deficiency judgment lis pendens mechanic's lien estoppel certificate
a lis pendens notice Explanation Lis pendens means "suit pending".
When a lien against a parcel of real estate may result from a lawsuit currently before the courts, one examining the public records would look for: constructive notice a lis pendens notice the chain of title a suit to quiet title
involuntary lien Explanation A judgment is a general involuntary lien. An involuntary lien is a claim made against property to which the property owner did not consent or agree. Due to some action or inaction by the property owner, a third party places a lien on the property to secure money owed to the third party by the property owner. Common types of involuntary liens include local, state, and federal government tax liens, and contractor's or mechanic's liens for improvements made on the real estate. In each of these types of involuntary liens, the property owner did not consent to having the lien placed on the property; however, the third party was able to place a lien on the property due to the property owner's failure to pay tax bills, or pay for services or materials provided by a builder or contractor. An involuntary lien is the opposite of a voluntary lien, such as a mortgage lien; in the case of a voluntary lien, the property owner takes some affirmative action to have a lien placed on the property
When duly recorded in the county where the real property of the defendant is located, a judgment becomes a(n): voluntary lien involuntary lien attachment lien specific
Mortgage Explanation A mortgage is voluntary: taxes are assessed whether or not we want them.
Which of the following is a voluntary lien? Mortgage Estate tax Special assessment Ad valorem tax
172000 Explanation The selling price is 115% of what the seller paid for it. To find out what the seller paid for it divide $197,800 by 115% = $172,000
You have listed a house for $197,800. If the house sells for the listed price, the seller will make a profit of 15%. What price did the seller pay for the house? 167900 172000 168130 176500