Unit 15 Real Estate Taxes And Other Liens Vocabulary

ad valorem tax

A tax levied according to value, generally used to refer to real estate tax. Also called the general tax.

assessment equalization factor

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax would be based on this adjusted value. May be applied to raise or lower assessments in a particular district or county.

equitable lien

lien created by fairness or court order to prevent unjust enrichment, even if there's no formal agreement.

equitable right of redemption

Legal process that allows a defaulted borrower, before a foreclosure sale, to redeem the property by paying off the entire loan balance, including any interest, costs, and fees.

estate tax

Federal tax on a decedent's real and personal property.

general lien

The right of a creditor to have all of a debtor's property—both real and personal—sold to satisfy a debt.

general real estate tax

A tax that is made up of the taxes levied on the real estate by government agencies and municipalities.

inheritance tax

State-imposed taxes on a decedent's real and personal property.

involuntary lien

A lien placed on property without the consent of the property owner.

judgment

The formal decision of a court upon the respective rights and claims of the parties to an action or suit

junior lien

An obligation, such as a second mortgage, that is subordinate in right or lien priority to an existing lien on the same property.

lien

A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.

mechanic's lien

A statutory lien created in favor of contractors, laborers, material suppliers, and others who have performed work or furnished materials in the erection or repair of a building.

mill

One-tenth of one cent. Some states use a ____ rate to compute real estate taxes;

mortgage lien

A lien or charge on the property of a mortgagor that secures the underlying debt obligation

special assessment

A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a street or sewer.

specific lien

A lien affecting or attaching only to a certain, identified parcel of land or piece of property

statutory lien

A lien imposed on property by statute—a tax lien, for example—in contrast to an equitable lien, which arises out of common law.

statutory right of redemption

The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.

subordination agreement

A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.

tax lien

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

tax sale

A court-ordered sale of real property to raise money to cover deli

vendor's lien

A lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has not taken any other lien or security beyond the personal obligation of the purchaser.

voluntary lien

A lien placed on property with the knowledge and consent of the property owner.

writ of attachment

A document ordered by the court to have a sheriff enter a leased property to give possession back to the owner.