Ch 4 Unit 5 Liens and Encumbrances - Quiz

Which of the following is an example of an easement by necessity? A court grants a land-locked owner the right to use a neighbor's driveway for access. Two neighbors agree the build a fence and share ownership of the fence. An owner invites a neighbor to use his swimming pool while the owner is away for the summer. A person habitually parks his recreational vehicle on his neighbor's yard because his own driveway is not large enough to hold it.

A court grants a land-locked owner the right to use a neighbor's driveway for access.

What is a lien? A promissory note A clouded title A type of easement A creditor's claim

A creditor's claim

How can a junior lien's priority be changed? The lienee can "promote" one lien above another at the request of a lienee. A lienor can sue to have its lien reclassified as superior. If the holder of a superior lien dies, an inferior lien holder automatically moves up on the schedule of priority. A lienor can voluntarily agree to subordinate its lien to another lien.

A lienor can voluntarily agree to subordinate its lien to another lien.

A property owner has the legal right to pass over the landowned by his neighbor. He holds an A) easement B) emblement C) estate in land D) encroachment

A) easement

After moving into his new home, Marco discovered that his neighbor gets to his workshop by regular use of Marco's driveway. Marco's lawyer explains that the neighbor's lot owns an easement over Marco's driveway. Marco's property is called A) the servient estate B) a leasehold estate C) a pur autre vie estate D) the dominant estate

A) the servient estate

The ad valorem property tax rates may be adjusted every A) year B) two years C) four years D) five years

A) year

Neighbor Fred built a retaining wall that was 2 feet outside his property line. What has Fred created? A deed restriction A license violation An encroachment A zoning exemption

An encroachment

What kind of interest does a lienor usually have in the liened property? A possessory interest Legal ownership of a dominant tenement A legal interest in a pro rata share of the property An equitable interest, except a mortgage lienor in a title-theory state

An equitable interest, except a mortgage lienor in a title-theory state

All of the following terms are related to easements except A) appurtenant B) assessment C) by necessity D) by prescription

B) assessment

Which of the following liens typically would be given higher priority? A) mortgage dated last year B) Current real estate taxes C) mechanics' lien for work started before the mortgage was made D) judg(e)ment made yesterday

B) current real estate taxes

Which of the following is an example of a specific lien? A) Judgment lien B) Special Assessment lien C) Personal Property Tax Lien D) IRS income tax lien

B) special assessment lien

In North Carolina, all real property must be assessed every A) four years B) six years C) eight years D) ten years

C) eight years

According to typical lien priority, which of the following would be paid first from proceeds from a court-ordered sale? A) mortgage lien B) judgment lien C) real property tax lien D) special assessment lien

C) real property tax lien

Which of the following is NOT a legal property of liens? Attaches to the property. Terminates when payment is recorded. Generally conveys an equitable interest. Can only exist one at a time against the same property.

Can only exist one at a time against the same property.

Under City contract, ABC Paving COmpany paved a dirt road that runs adjacent to your property. As property owner, you would pay for this in the form of A) ad valorem taxes B) personal property taxes C) an invoice from the contractor D) a special assessment

D) a special assessmet

A mechanics' lien? A) must be filed within 180 days after the last day of labor B) is a general lien that is good for 10 years C) is used to collect payment from the general contractor D) gives security to the persons that work on real property owned by others

D) gives security to the persons that work on real property owned by others

Which of the following is an example of a general lien? A) mortgage lien B) Real estate tax lien C) Mechanics' lien D) State income tax lien

D) state income tax lien

Oak Hill subdivision only allows homes over 2,000 sq ft to be built. What is this an example of? Deed restriction Encroachment Prescription Zoning restriction

Deed restriction

Which is NOT a superior lien? Special assessment lien Real estate tax lien Federal and state inheritance tax lien Judgment lien

Judgment lien

A film company wants to rent a farm from the farm owner for a two-week film shoot. What type of agreement should be used? Encumbrance Easement License Appurtenance

License

A homeowner wants to give a neighbor seasonal permission to cross her yard to reach a public basketball court. What kind of lien or encumbrance should she use? Encumbrance Easement License Covenant

License

Which of the following statements about liens is FALSE? There may be multiple liens against a property. Liens always convey ownership. An owner acquires existing liens along with the property. A lien terminates after 24-months of non-payment.

Liens always convey ownership.

Which would terminate an easement? Sale of the property by the dominant tenement Sale of the property by the servient tenement Revocation by the servient tenement Merger of the two properties

Merger of the two properties

Which of the following is an example of a voluntary lien? Judgment lien Mortgage lien Vendor's lien Mechanic's lien

Mortgage lien

How is a lien terminated? Payment of the debt that is the subject of the lien and recording of the satisfaction Transfer of the property that has the lien Recording of another lien that is superior Death of the lienor or lienee

Payment of the debt that is the subject of the lien and recording of the satisfaction

A foreclosure finds a homeowner with the following liens: a first mortgage dated five years earlier; a second mortgage dated two years earlier; an unpaid real estate tax bill for the current year; and a mechanic's lien for work performed five years earlier. Which of these liens will be paid off first? First mortgage Second mortgage Property tax lien Mechanic's lien

Property tax lien

What date is used to establish lien priority for a mechanic's lien? The date of recording the lien The date of contracting between the mechanic and the lienee. The date of beginning or ending the mechanic's work, per state law The date the lienee borrows money to pay the debt

The date of beginning or ending the mechanic's work, per state law

Which of the following is true of easements in general? They involve the property that contains the easement and a non-owning party. They apply to a whole property, not to any specific portion of the property. They cannot be assigned or transferred. They may require a specific use, but cannot prohibit one.

They involve the property that contains the easement and a non-owning party.

A property built 23 years ago had a roof overhang that extended 1½ feet onto a neighbor's property. What could happen? This could create an easement by prescription. The owner of the property could make the owner of the roof pay him for the land. Neither property owner could do anything since it has gone on for so long and hasn't bothered anyone. The owner of the property may have a better chance of suing to have the encroachment removed because damages could not be awarded that many years later.

This could create an easement by prescription.

Property A and property B share a common wall along the property boundary. To ensure that neither owner destroys the wall, the owners of A and B should create an easement by necessity. a perpetual encroachment. a license. a party wall easement.

a party wall easement.

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 4%. The tax bill will be a. $4,800 b. $5,000 c. $5,200 d. $6,400

a. $4,800

In two weeks, a general contractor will file a suit against a homeowner for nonpayment. The contractor just learned that the homeowner has listed the property for sale with a real estate broker. In this situation, which of the following will the contractor's attorney use to protect the contractor's interest? a. Lis pendens b. Seller's lien c. Buyer's lien d. Assessment

a. Lis pendes

Which of these statements is TRUE of the succesful bidder on property offered at an annual tax sale? a. She may obtain a tax deed if the property is not redeemed within the redemption period. b. She owns the property after paying the outstanding taxes. c. She bids the highest percentage of interest she will accept if the property is redeemed. d. She receives a tax deed at the time of the sale.

a. She may obtain a tax deed if the property is not redeemed within the redemption period

General real estate taxes levied for the operation of the government are called a. ad valorem taxes b. assessment taxes c. special taxes d. improvement taxes

a. ad valorem taxes

A homeowner decided to add a family room onto is house. An electrician was hired to wire the room but has not been paid. The electrician has the right to a. record notice of the mechanic's lien and file a court suite within the time required by state law b. tear out his work c. record a notice of the mechanic's lien d. have personal property of the owner sold to satisfy the lien

a. record a notice of the mechanic's lien and file a court suite within the time required by state law

Which of these creates a lien on real estate? a. Unpaid mortgage loan b. Easement running with the land c. License d. Encroachment

a. unpaid mortgage loan

A court might grant an easement by prescription if a municipality needs to dig a trench across an owner's property to install a sewer line to a neighboring property, and the owner refuses permission. a property owner sells the front half of a lot and wants to continue using the driveway to reach the rear of the lot. an intruder has been using an owner's property for a certain period with the owner's knowledge but without permission. a property owner wants to prevent the owner of an adjoining property from building a second-story addition that blocks the sunlight to his rose garden.

an intruder has been using an owner's property for a certain period with the owner's knowledge but without permission.

An encroachment is an easement that has not been recorded on the title of the burdened property. an unauthorized physical intrusion of one property into another. a right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property boundary. a structure that does not comply with a zoning ordinance.

an unauthorized physical intrusion of one property into another.

An encumbrance is most broadly defined as another's right to use a property without the permission of the property owner. another's right to claim the sale proceeds of a property that has been used as collateral for a loan. another's interest in a real property that limits the interests of the freehold property owner. another's right to control how the freehold owner of a real property uses the property.

another's interest in a real property that limits the interests of the freehold property owner.

A man owns a condominium town house in Cook County and a weekend retreat in Sangamon County, both in Illinois. He also owns investment property in Montana. If one of his creditors sues him in a Cook County court and a judgment is issued against him and is recorded in both Cook and Sangamon counties, which of these is TRUE? a. The judgment becomes a lien on the weekend retreat, the man's speedboat, and all other items of real and personal property in Sangamon County. b. The judgment becomes a lien on the property located in both Cook and Sangamon counties. c. The judgment becomes a lien on all of the man's real and personal property, wherever located. d. The judgment becomes a lien on the Cook County town house only.

b. The judgment becomes a lien on the property located in both Cook and Sangamon counties

Which of these statements BEST describes special assessment liens? a. They are general liens. b. They take priority over mechanics' liens. c. They are paid on a monthly basis. d. They cannot be prepaid in full without penalty.

b. They take priority over mechanic's lien

The equalization factor used in Illinois taxation is designed to a. increase the tax revenues of the state. b. correct discrepancies between the assessed values of similar parcels of land in various counties. c. correct inequities in taxes for senior citizens and disabled persons. d. decrease taxes for the poor and unemployed.

b. correct discrepancies between the assessed values of similar parcels of land in various counties

Which lien affects all real and personal property of a debtor? a. Specific b. Voluntary c. General d. Statutory

c. General

The first installment of the tax bill for all counties except Cook is due on a. September 1. b. June 1. c. the first business day in March. d. the day after the actual amount of the current year's tax is determined.

c. June 1

Which of these liens would usually be given highest priority in disbursing funds from a foreclosure sale? a. Mortgage dated last year b. Mechanic's lien for work started before the mortgage c. Real estate taxes due d. Judgment rendered yesterday

c. Real estate taxes due

Which of these is a voluntary, specific lien? a. IRS tax lien b. Mechanic's lien c. Mortgage lien d. Special assessment

c. mortgage lien

Priority of liens refers to the a. order in which the debtor assumes responsibility for payment of obligations b. dates liens are filed for record c. order in which liens will be paid if property is sold to satisfy a debt d. fact that specific liens have greater priority than general liens

c. order in which liens will be paid if property is sold to satisfy a debt

Which of these taxes targets homeowners in particular> a. personal property tax b. sales tax c. real property tax d. luxury tax

c. real property tax

A person owns a primary residence and two apartment buildings. She pays property taxes on two of the three properties. The delinquent taxes will result in a lien on a. all three properties. b. all real and personal property that she owns. c. the property on which she has not paid the taxes. d. only her primary residence.

c. the property on which she has not paid taxes

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 2.5%? a. $945 b. $1,181 c. $1,418 d. $1,477

d. $1,477

A mechanic's lien would be available to a a. seller's real estate agent b. buyer's real estate agent c. taxing authority d. contractor

d. contractor

Which of these is classified a a general lien? a. mechanic's lien b. bail bond lien c. real estate taxes d. judgment

d. judgment

Which of these is a lien on real estate made to secure payment for a specific municipal improvement project? a. mechanic's lien b. ad valorem c. utility lien d. special assessment

d. special assessment

If the owner of property A has a court-ordered easement to drive across property B because it is the only way for A to have access to a public road, the easement is a(n) easement by prescription. personal easement. easement by necessity. easement in gross.

easement by necessity.

An improvement which crosses over the property line without permission is called a(n) easement. encroachment. license. right of way.

encroachment.

Deed restrictions generally concern the form of ownership in which a property may be held. how long a property must be owned before it can be legally transferred. what groups of people are legally excluded from future ownership of a property. how a property may be used and what structures may be built on it.

how a property may be used and what structures may be built on it.

The lienee in a lien is the party who initiates the lien. owner of the property that is subject to the lien. party who has a claim against the owner of the property subject to the lien. property that is given as security for a debt.

owner of the property that is subject to the lien.

A general lien is a lien imposed by statutory law. imposed by court order. placed against an individual rather than against any particular property. placed against any and all property owned by an individual.

placed against any and all property owned by an individual.

Special assessment tax liens are general liens. are paid on a monthly basis. take priority over mechanic's liens. cannot be prepaid in full without penalty

take priority over mechanic's liens.

A mortgage lien is a type of voluntary lien. involuntary lien. statutory lien. general lien

voluntary lien.