Unit 15
real estate tax lien
All of these liens must be recorded to be effective EXCEPT A) voluntary lien. B) real estate tax lien. C) mechanic's lien. D) money judgment.
the property owner or the owner's authorized representative
To be entitled to a mechanic's lien on real estate, the person who did the work or supplied the materials for which payment is claimed must have a contract with A) the property owner or the owner's authorized representative. B) the owner that is signed by the owner. C) any of the companies that provide work or materials for the property improvement. D) the county recorder that establishes the legal status of the individual intending to file the lien.
A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor's property.
What is the difference between a general lien and a specific lien? A) A specific lien is a lien against a certain parcel of real estate, while a general lien covers all of a debtor's property. B) A specific lien is held by only one person, while a general lien must be held by two or more. C) A general lien is a lien against personal property, while a specific lien is a lien against real estate. D) A general lien cannot be enforced in court, while a specific lien can.
money judgment
What type of judgment establishes the amount a debtor owes and provides for money to be awarded? A) Deed judgment B) Debt judgment C) Money judgment D) Permission judgment
Real Property Tax
Which tax targets homeowners in particular? A) Personal property tax B) Luxury tax C) Real property tax D) Franchise tax
a mechanic's lien
A buyer is looking at a new construction home to purchase. What type of lien should the buyer be MOST concerned about? A) Attachment lien B) Mechanic's lien C) Mortgage lien D) IRS tax lien
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 man's 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) No, because there was no express or implied contract between the homeowner and the contractor. B) Yes, because the garage is not a part of an owner-occupied residence. C) Yes, because the garage was constructed according to the homeowner's specifications. D) No, because notice of the lien should have been filed in May, when the work was completed.
a lis pendens
A lien against a parcel of real estate may result from a lawsuit currently before the court. Notice of a possible future judgment could be found by examining the public records for A) a lis pendens. B) a judgment lien. C) a suit to quiet title. D) the chain of title.
Voluntary, Involuntary, Statutory, Equitable
A lien can be created in which four ways? A) Voluntary, Involuntary, Statutory, Equitable B) Statutory, Voluntary, Equitable, Singular C) Attachment, Involuntary, Equitable, Stable D) Voluntary, Involuntary, Singular, Legal
transfers along with the property
A lien is an encumbrance, which means that it attaches to property and A) cannot be satisfied by anyone other than the person who encumbered the property. B) transfers along with the property. C) must be satisfied before ownership of the property can be transferred. D) requires approval of the lienholder before the property can be transferred.
All of these
A lien is created in which of the following ways? A) Voluntary B) Equitable C) All of these D) Involuntary
a specific lien
A mechanic's lien is properly classified as A) a voluntary lien. B) a specific lien. C) an equitable lien. D) a general lien.
real estate professionals
A mechanic's lien would be available to all of the following EXCEPT A) surveyors. B) subcontractors. C) real estate professionals. D) contractors.
the lender records the financing documents
A mortgage becomes a lien on real property when A) the borrower receives the title to the property. B) the closing on the sale takes place. C) the lender records the financing documents. D) the borrower signs the security instrument.
a vendor's lien
A mortgage for the unpaid purchase price that belongs to the seller of real estate is A) a vendor's lien. B) a general lien. C) an equitable lien. D) a statutory lien.
the assessed valuation of the property
A property owner's real estate tax bill is computed by applying the tax rate to A) the assessed valuation of the property. B) the current market value of the property. C) the value of the owner's equity in the property. D) the most recent purchase price of the property.
obtaining a mechanic's lien against the subject property
A provider of construction materials may give constructive notice of his unpaid invoices by A) filing a judgment with the court in the residential jurisdiction of the builder. B) advising potential buyers of the builder's debts. C) placing an ad in the legal notices section of the local newspaper. D) obtaining a mechanic's lien against the subject property.
$4,800 (The answer is $4,800. A mill is 1/1000 of a dollar: $0.001. The mill rate is the tax on every dollar of the assessed value of property. A rate of 40 mills ($0.040) is applied to 75% of the $160,000 market value of the property: $160,000 × 75% = $120,000, and $120,000 × $0.040 = $4,800.)
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 40 mills. The tax bill will be A) $5,200. B) $5,000. C) $4,800. D) $6,400.
change the priority of a mortgage
A subordination agreement is a written agreement between lienholders to A) change the priority of a mortgage. B) pay off all liens. C) change the interest rate on a mortgage. D) determine special assessments.
apartment buildings
All of the following probably would be exempt from real estate taxes EXCEPT A) golf courses operated by the park district. B) public hospitals. C) synagogues and churches. D) apartment buildings.
Uniformity
An assessment equalization factor is used to achieve A) uniformity. B) novation. C) attachment. D) rescission.
by using an equalization factor
How might a jurisdiction raise or lower property assessments? A) By using an equalization factor B) By using a VA tax C) By applying for state aid D) By enforcing a premium tax
present the objection to a local board of appeal or review
If a property owner believes an error was made in determining the assessed property value, the owner can A) present the objection to a local board of appeal or review. B) pay the amount the owner believes is correct. C) none of these. D) choose not to make any payments based on the assessment.
County - contractor - mortgage company
In February, a homeowner contracted with a general contractor to have a basement storage space converted to a sauna, but 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 of these creditors obtain judgments against the owner in November, what will be the priority of their liens (first to last)? A) County → mortgage company → contractor B) County → contractor → mortgage company C) Contractor → county → mortgage company D) Contractor → mortgage company → county
Order in which liens will be paid if property is sold to satisfy a debt
Priority of liens refers to which of the following? A) Order in which liens will be paid if property is sold to satisfy a debt B) Fact that specific liens have greater priority than general liens C) Dates liens are filed for record D) Order in which a debtor assumes responsibility for payment of obligations
have priority over other liens
Property tax liens A) must be placed by the mortgagee. B) are based on market value. C) have priority over other liens. D) are typical on residential property.
tax sale of property
Real estate taxes that are delinquent for the period specified in state law can be collected through A) tax sale of the property. B) filing of a bankruptcy petition. C) garnishment of the wages of the property owner. D) lien against other property of the owner.
$960 (The answer is $960. 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 its 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) $1,080 B) $960 C) $480 D) $1,800
first to record, first in right
The priority of liens means A) first to record, first in right. B) first to publish, first to create. C) first to create, first to record. D) first to create, first in right.
the equitable right of redemption
The right of a defaulted taxpayer to recover property before its sale for unpaid taxes is A) the equitable right of redemption. B) the statutory right of reinstatement. C) the equitable right of appeal. D) the statutory right of assessment.
A writ of execution from the court
To enforce a judgment, what must the creditor obtain? A) All of these B) Permission from the debtor C) Documentation of the debtor's annual income D) A writ of execution from the court
a lis pendens
To give notice of a potential claim against property and to establish priority, a creditor may file A) a specific lien. B) an attachment. C) a general lien. D) a lis pendens.
Writ of execution
What directs a sheriff to seize and sell as much of a debtor's property as necessary to pay for the debt and the expenses of the sale? A) Franchise tax B) Writ of execution C) Municipal lien D) Mortgage lien
IRS Tax Lien
What is another name for a federal tax lien? A) IRS tax lien B) Estate tax lien C) Attachment lien D) Bail bond lien
a mechanic's lien
When a company furnishes materials for the construction of a house and is subsequently not paid, it may file A) an estoppel certificate. B) a lis pendens. C) a deficiency judgment. D) a mechanic's lien.
a year after the assessment is approved
When is the first installment of a special assessment generally due? A) Immediately after the assessment is approved B) After the interest is first paid in full C) Whenever the property owner can afford it D) The year after the assessment is approved
an involuntary lien
When properly recorded in the county where the real estate of the defendant is located, a judgment becomes A) a voluntary lien. B) a specific lien. C) an involuntary lien. D) a statutory lien.
unpaid mortgage loan
Which of the following creates a lien on real estate? A) Easement running with the land B) License C) Encroachment D) Unpaid mortgage loan
specific, involuntary lien
Which of these characteristics apply to a real estate tax lien? A) General, involuntary lien B) General, voluntary lien C) Specific, voluntary lien D) Specific, involuntary lien
writ of execution
Which of these would permit a law enforcement officer to seize and sell a debtor's property? A) Lis pendens B) Writ of execution C) Satisfaction of judgment D) Writ of attachment
it involves a debtor-creditor relationship
Which statement is TRUE of both a mortgage lien and a judgment lien? A) It is an involuntary lien. B) It is a general lien. C) It must be entered by the court. D) It involves a debtor-creditor relationship.
