CREL Unit 5

Encumbrance

Any claim by another party that may diminish the value of a property.

Lien

A financial claim against a debtor's real and personal property.

General Lien

Covers ALL the debtor's real and personal property.

Specific Lien

Covers only the ONE parcel described in the instrument that gave rise to the debt.

Voluntary Lien

Created by the owner's voluntary action.

Involuntary Lien

Imposed against property WITHOUT the owner's consent.

Priority of Liens

Real estate tax liens are paid FIRST; priority is established by the order recorded.

Subordination Agreement

A voluntary written agreement between lienholders to change priority of mortgages, judgments, or other liens.

Mechanic's Lien

Placed on a property by a contractor, subcontractor, or supplier who performed work or added value but wasn't paid.

Real Estate Tax Lien

Specific and involuntary lien that becomes a lien on July 1 each year in NYC.

Mortgage Lien

Provides lenders with security for mortgage loans; a voluntary lien.

Judgment Lien

A court order that becomes a lien on all the debtor's real property in that county.

Satisfaction Piece

Evidence that a lien has been paid; must be recorded.

Lis Pendens

A recorded notice that a lawsuit is awaiting trial and may result in a judgment against the property.

Estate and Inheritance Taxes

General liens against property owned by a deceased person.

Vendor's Lien

Claim by a seller against a buyer who failed to pay the entire purchase price.

Vendee's Lien

Claim by a buyer against a seller who failed to convey title.

Corporation Franchise Tax

Tax on corporations as a condition of doing business in NYS.

Deed Restrictions

Restrictions placed on land by a seller to limit or control future use of the property.

Easement

A right allowing someone OTHER than the property owner to access the property for specific use.

Easement Appurtenant

Involves adjacent parcels of land and runs with the land.

Easement in Gross

A right that attaches personally to the easement owner, not benefiting a property.

Easement by Necessity

Acquired when the only access to a parcel is through another's property.

Easement by Prescription

Right to use another's property acquired by continuous, open, uninterrupted, exclusive, and adverse use.

Party Wall Easement

A shared wall between two buildings on the boundary line of two owners' lots.

Easement by Condemnation

Government's right to sue for ownership of private property.

Encroachment

The physical intrusion of an improvement onto another owner's property.

License

Temporary, revocable permission granted by an owner to enter property for a specific limited purpose.

Adverse Possession

Actual, open, notorious, hostile, and continuous possession of another's land under a claim of title.

Affidavit of Entitlement to Commission

Permits a broker to enter an Affidavit of Entitlement into the public records.

Appurtenant

A right, privilege, or improvement belonging to and passing with the land.

Cloud on the Title

A document, claim, unreleased lien, or encumbrance that may impair title or make it doubtful.

Deed restriction

An imposed restriction in a deed limiting the future use of the land.

Dominant estate

A property whose ownership includes the right to use an easement over another person's property for a specific purpose.

Easement by grant

An easement granted by one owner to another.

Estate taxes

Federal tax levied on property transferred upon death.

Judgment

Formal decision of a court on the respective rights and claims of parties to an action. Once entered and recorded with the county recorder, it usually becomes a general lien on the defendant's property.

Lis pendens (notice of pendency)

Recorded legal document giving constructive notice that some legal action (e.g., foreclosure) affecting a property has been filed in the county records office.

Notice of pendency (lis pendens)

Recorded legal document giving constructive notice that an action affecting a particular property has been filed in state or federal court.

Party wall

A wall located on or at the boundary line between two adjoining parcels of land, used by both owners.

Priority

The order in which documents or claims are filed and are entitled to be satisfied.

Right-of-way

The right given by one landowner to another to pass over the land, construct a roadway, or use as a pathway, without transferring ownership.

Servient estate

Land on which an easement exists in favor of an adjacent property (the dominant estate).

Tax lien

A charge against property created by operation of law. Tax liens and assessments take priority over all other liens.