Unit 10: Real Estate Taxes & Other Liens

Appropriation

The way a taxing body actually authorizes the expenditure of funds and provides for the sources of the funding.

Collateral

Something having value that is given to secure repayment of debt.

Encumbrance

Anything (for example, a mortgage, tax, or judgement lien; an easement; a restriction on the use of land) that may diminish the value or use and enjoyment of the property.

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 volerm tax is based on this adjusted value.

Equitable Lien

A lien that arises out of common law

Estate Taxes

Federal taxes 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 text levied according to value, generally used to refer to real estate tax. Also called an ad valorem tax.

Inheritance Taxes

State-imposed taxes on a decendent’s real and personal property

Involuntary Lien

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

Judgement

The formal decision of a court on the respective rights and claims of the parties to an action or suit. After a judgement has been entered and recorded with the court recorder, it usually becomes a general lien on the property of the defendant.

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 court sale.

Lien Waiver

Collected by the landowner from each contractor and subcontractor to create a continuing record of all lien claimants have released their lien rights.

Lis Pendens

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

Mechanic’s Lien

A statutory lien created in favor of contractor’s, laborers, and material men who have performed work or furnished materials in the erection or repair of a building.

Mortgage Lien

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

Special Assessment

A tax or levy 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, specific parcels of land or piece of property.

Statutory Lien

A lien imposed on property by statute (for example, a tax lien)

Subordination Agreement

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

Tax Deed

An instrument given to a purchaser after the expiration of the redemption rights. See also certificate of sale.

Tax Lien

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

Tax Sale

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

Voluntary Lien

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

Writ of Attachment

To prevent a debtor from conveying title to such previously unsecured real estate while a court suit is being decided, a creditor may seek a writ of attachment, by which the court retains custody of the property until the suit concludes.