unit 10 real estate exam

What is a lien?

A claim by a creditor or taxing authority against a debtor's property.

What are the two major classifications of liens by property coverage?

General and specific.

What is a general lien?

A lien against all real and personal property of a debtor.

What is a specific lien?

A lien against specifically identified property.

What are the two classifications based on how the lien is created?

Voluntary and involuntary.

What is a voluntary lien?

A lien created through the debtor's action or agreement.

What is an involuntary lien?

A lien created without the debtor's voluntary action.

What are statutory and equitable liens?

Statutory liens are created by law; equitable liens are based on fairness.

What generally determines lien priority?

The order in which liens are recorded.

Which liens generally have priority?

Tax liens and special assessment liens.

What is a mortgage lien?

A voluntary, specific lien securing repayment of a real estate loan.

What is a mechanics' lien?

A lien protecting contractors, subcontractors, and material suppliers who improve real property.

What is a judgment lien?

A lien created from a court judgment against a debtor.

What is lis pendens?

A recorded notice that a lawsuit affecting title to real estate is pending.

What is attachment?

A process used to prevent a defendant from transferring property while a lawsuit is pending.

What is a special assessment?

A charge against specific properties to pay for public improvements benefiting those properties.

What is a special service area?

A special taxing district used to fund improvements or services for properties within the district.

What is an IRS tax lien?

A general lien against the property of a person who owes federal taxes.

What is a tax sale?

A sale of tax-delinquent property to collect unpaid property taxes.

What is the homeowner exemption?

A tax benefit that reduces the assessed value of a qualifying property.

What is the senior citizen homestead exemption?

An exemption available to qualifying homeowners age 65 or older.

What is the assessment freeze exemption?

A program that can freeze the assessed valuation of a qualifying senior citizen's property.

How often are full reassessments made in Illinois according to the material?

Every four years.

How long does an Illinois judgment lien last?

Seven years, with the possibility of renewal for another seven years.