chap 15 real estate taxes and other liens instructor question

c (lis pendens)

All of these are liens against real property EXCEPT a. a mortgage. b. real estate taxes. c. lis pendens. d. home improvement loan of a deceased property owner.

c (real estate tax lien)

All of these liens must be recorded to be effective EXCEPT a. money judgment. b. mechanic's lien. c. real estate tax lien. d. voluntary lien.

d (Real estate taxes)

Generally, in a court-ordered sale, which of these is paid first? a. First mortgage b. Mechanics' liens c. Child support liens d. Real estate taxes

d (county -> contractor -> mortgage company)

In February, a homeowner signed an agreement with a general contractor to have a bathroom converted to a sauna, but the homeowner never paid for the work. The homeowner stopped making mortgage payments in June. The owner is two years delinquent in property taxes to the county. The state gives mechanics' liens priority. If all these creditors obtain judgments against the owner in November, what will be the priority of their liens (first to last)? a. Contractor → mortgage company → county b. County → mortgage company → contractor c. Contractor → county → mortgage company d. County → contractor → mortgage company

b (The tax owned on the property is $960: $40,000 × 40% × 1.5 ÷ 100 × 4 = $960)

The market value of an undeveloped parcel is $40,000. Its assessed value is 40% of market value, and properties in this county are subject to an equalization factor of 1.50. If the tax rate is $4 per $100, what is the amount of the tax owed on the property? a. $480 b. $960 c. $1,080 d. $1,800

b (The tax bill is $1,402.50 0.5 + 1 + 0.5 + 1 + 0.5 + 5 = 8.5 mills or $0.0085 per dollar of valuation $165,000 × 0.0085 = $1,402.50.)

The millage breakout for ad valorem taxes is library: 0.5; school: 1; school debt service: 0.5; community college: 1; vocational school: 0.5; and all others: 5. If the property is assessed at $165,000, how much is the tax bill? a. $1,200.25 b. $1,402.50 c. $1,405.75 d. $1,800.50

a (specific involuntary)

Which of these characteristics applies to a real estate tax lien? a. Specific, involuntary lien b. Specific, voluntary lien c. General, involuntary lien d. General, voluntary lien

a (Federal tax lien)

Which of these is a general, statutory, and involuntary lien on both real and personal property? a. Federal tax lien b. Mechanic's lien c. Special assessment d. Consumer loan lien

c (mortgage lien)

Which of these is an example of a specific, voluntary lien? a. Decedent's debts b. Internal Revenue Service liens c. Mortgage lien d. Corporate franchise liens

c (writ of execution)

Which of these would permit a law enforcement officer to seize and sell a debtor's property? a. Lis pendens b. Satisfaction of judgment c. Writ of execution d. Writ of attachment

b (special assessment)

A town wants to construct new concrete curbs in a residential neighborhood. How will the town most likely raise the money necessary for the improvement? a. Ad valorem tax b. Special assessment c. Equalized assessment d. Utility lien

d (No, because there was no express or implied contract between the homeowner and the contractor.)

A homeowner considered having a new garage built and talked about the project with a contractor. In April, while the homeowner was on vacation, the contractor began building the garage according to the discussed specifications. Work was complete by the end of May. In June, the homeowner returned from vacation and refused to pay for the garage. The contractor decided to file a mechanic's lien in July. Is the contractor entitled to a lien? a. Yes, because the garage was constructed according to the homeowner's specifications. b. Yes, because the garage is not a part of an owner-occupied residence. c. No, because notice of the lien should have been filed in May, when the work was completed. d. No, because there was no express or implied contract between the homeowner and the contractor.

a (lis pendens)

To give notice of a potential claim against a property and to establish priority, a creditor may file a. a lis pendens. b. an attachment. c. a general lien. d. a specific lien.