CH. 9

If a lienor agrees to subordinate the junior lien he or she holds, what is the lienor agreeing to do? Have the amount of the debt lowered Foreclose on the property Change the lien priority Have the lien re-ranked from a superior lien to a junior lien

Change the lien priority

How is a lien terminated? Transfer of the property Foreclosure Suit for judgment Payment of the debt

Payment of the debt

What factors determine lien priority?

The lien's categorization as superior or junior The date the lien was recorded

A property owner who is selling her land wants to control how it is used in the future. How might she accomplish her aim? An injunction A deed restriction An easement A land trust

A deed restriction

What is a judgment lien and how long does it last?

A judgment lien results from a lawsuit. It attaches to real and personal property as a result of a money judgment issued by a court in favor of a creditor. It lasts for ten years and can be renewed.

How can the priority order of a junior lien be changed?

A lienor can change the priority of a junior lien by voluntarily agreeing to subordinate, or lower, the lien's position in the hierarchy.

Most liens do not convey ownership. What is the one exception to that rule?

A mortgage lien conveys legal title to the lender.

What is a corporation franchise tax and on what is it based?

A tax levied on corporations for doing business in the state. This tax is based on the net profit of the business and if it is not paid, it becomes a lien on all the property, both real and personal, that the corporation owns.

What is it called when an unauthorized, physical intrusion of one owner's real property comes into that of another? An easement appurtenant An encroachment An easement by prescription A party wall easement

An encroachment

Define encroachment and give an example.

An encroachment is the unauthorized, physical intrusion of one owner's real property into that of another. An example would be a driveway extending beyond the lot line onto the neighbor's land.

What are the two basic types of easement and what is the difference?

Easement appurtenant & Easement in gross An easement appurtenant attaches to the estate and transfers with it unless specifically stated otherwise in the transaction documents, while the easement in gross is a personal right to use and does not attach to the grantor's estate.

Rancher Norm is allowed to bring his cattle onto the neighbor's property to access a public water source. What type of easement does Norm have? Easement of order Easement of association Easement by access Easement by implication

Easement by implication

A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumber yard for a load of lumber. What potential problem might the homeowner experience? The contractor may place a mechanic's lien for the amount of the lumber against the homeowner's real property. The lumber yard may place a vendor's lien against the contractor and the homeowner for the amount of the lumber. The lumber yard may place a mechanic's lien for the amount of the lumber against the homeowner's real property. The homeowner has no liability because the contractor was paid for the lumber.

Easement by necessity

If a third party has been using a portion of a land owner's land without the owner's permission but with the owner's knowledge for 12 years, what type of easement may the third party obtain from a court order? Voluntary easement Easement by necessity Easement in gross Easement by prescription

Easement by prescription

What are easements and encroachments types of? Liens Deed restrictions Encumbrances Appurtenances

Encumbrances

Which lien has priority over a judgment lien? Federal income tax liens Mortgage liens Vendor's liens Mechanic's liens

Federal income tax liens

What type of lien is placed against any and all real and personal property owned by a debtor? General Basic Listed Specific

General

What type of lien is placed against any and all real and personal property owned by a particular debtor? General Basic Targeted Pass

General

What is a mechanic's lien?

If a property owner fails to pay for work performed or materials supplied, a worker or supplier can file a mechanic's lien to force the sale of the property and collect the debt.

A property owner has an easement appurtenant on her property. When the property is sold to another party, what will happen to the easement? It will terminate. It transfers with the property. It transfers with the owner to a new property. It becomes a lien on the property.

It transfers with the property.

What type of lien is the result of a lawsuit? Court Lien Shared Lien Judgment Lien Party Lien

Judgment Lien

What are the two most common types of encumbrances?

Liens and easements

Jill was notified that a piece of property she owns has a pending suit. What type of notice has Jill received? Los pending Lis pendens Lis depend Lis pendant

Lis pendens

Does a government lien automatically receive payment priority if other liens exist on the same property? Always Never Yes, if the debt owed to the government is higher than the debt owed to the other lien holders No, because payment priority is based on the date of the lien

No, because payment priority is based on the date of the lien

Which type of estate is an encumbrance? Fee simple estate Freehold estate Estate at sufferance None of the above

None of the above

When an individual holds the right to take fruit or timber from someone else's land, the individual holds what right? License Profit Easement Encroachment

Profit

A certain property has the following liens recorded against it: a mortgage lien dating from three years ago; a mechanic's lien dating from two years ago; a real estate tax lien for the current year; and a second mortgage lien dating from the current year. Which lien would take priority? First mortgage lien Mechanic's lien Real estate tax lien Second mortgage lien

Real estate tax lien

What type of lien takes priority over all other liens?

Real property tax lien

Priority of a mechanic's lien is based on the date the lien was filed. the date when the work was started or completed. the date when the owner was first contacted. the date stamp on the first receipt of building materials.

The lumber yard may place a mechanic's lien for the amount of the lumber against the homeowner's real property.

What is a common example of an easement by necessity?

The need for access to a property so that it is not landlocked.

Corporation franchise taxes are based on what? The type of business The net profit of the business The age of the business The marketable value of the business

The net profit of the business

When a notice of lis pendens has been served, A lien is placed on the property. The notice can be used in a suit to recover attorney fees. The property cannot be freely encumbered. The title remains marketable.

The property cannot be freely encumbered.

Which type of lien is also called a seller's lien? State intangible tax lien Special assessment lien Vendor's lien Municipal utility lien

Vendor's lien

What type of lien does an owner create when a property mortgage is negotiated? Voluntary Basic Listed Signed

Voluntary

How are easements created?

Voluntary action Necessity Prescriptive operation of law Grant or reservation Implication Government power of eminent domain (condemnation)

When does a mortgage lien actually become a lien? When the borrower signs the mortgage documents and receives the loan money When the lender approves the mortgage loan When the tax payer defaults on the mortgage loan When the tax payer sells the property after defaulting on the mortgage loan

When the borrower signs the mortgage documents and receives the loan money

When must a mechanic's lien be placed if the contractor is not paid? Within 1 year of signing a contract with the homeowner Within 4 months of work completion on a single dwelling Within 6 months of work completion on a commercial building Within 8 months of work start date

Within 4 months of work completion on a single dwelling

What type of action might a creditor take to force the sale of attached property to collect a debt? Writ of habeas Writ of transfer Writ of debt Writ of execution

Writ of execution

Estate and inheritance tax liens are determined by deed transfer. mortgage brokers. probate. open liens.

probate.

The priority of junior liens are based on amount of the lien. the number of parties involved with each lien. judicial review. the date of recording.

the date of recording.