Maryland Real Estate - Chapter 15

what is a lien?

a judgement against property that has to be repaid by the debtor

what ownership does a lien have?

just an interest in ownership, not the actual ownership

what happens with encumberances when properties are sold

they stay with the property

what is a voluntary lien?

owner action that they created like a mortgage loanwh

what is an involuntary lien?

created by law and could be statutory or equitable, usually real estate taxes

what is an equitable loan?

arises from common law when debtor requires borrower to pay what is owed and they have to go to court

what is a general lien?

affect real and personal property of the debtor

what are examples of general liens

judgements, estate taxes, debts, corporate franchise tax, and IRS taxes

when can general liens attach to real property

at the time that they are recorded

when do general liens attach to personal property

at the time that they are seized

what is a specific lien?

secured on property and only on the affected specific propertyw

what are examples of specific liens?

vendor, mechanical, mortgage, real estate tax, and special assesment liens

what are vendor liens?

liens belonging to the seller that are unpaid charges of the purchase of a property from the buyer

what liens take priority over all the liens?

real estate taxes and special assessment liens

what is ad valorem

according to value

what kind of lien is real estate taxes?

specific, involuntary, statutory

what properties are typically tax exempt?

city buildings, schools, parks, playgrounds, state and federal government buildings, religious or charitable buildings, and hospitals

when might taxes be reduced?

for specific persons, disabled, veterans, or to attract businesses or agricultural movements

what is the assessment equalization factor

its used to correct inequalities in assessments across the board for certain areas

how are tax rates on homes determined?

local government decides what they need to raise for the fiscal year

• an approriation is done on where the money will go

• once approved, a tax levy is created to impose the tax on the properties

  • then the tax rate is determined by state law

what are penalty dates?

they are the due dates for tax payments, can be paid monthly to annually

what is a tax sale?

its a sale given to the highest bidder when paid in cash, they get posession of the property

in a tax sale what happens with the deed?

the highest bidder doesnt immediately get the deed because of redemption, so they have to wait until that period ends

what is a sheriffs deed

when the highest bidder applies for the deed after the right of redemption has passed

what is special assessment

a tax chagred on property to fund public improvements to the property

what is a local improvement district

its a group of local owners who want to improve a big project like streets

what is a mechanics lien

it gives security to people or companies for payment on work that they did to a propertyw

what kind of lien is a mechanics lien

a specific, involuntary lien

what is a lien waver

required for a buyer to pay contractor from their construction loanw

when can the mechanics lien date begin?

the start of construction, date materials bought, completion date, subcontractors work complete date, date contract signed, or date lien was recorded, whichever comes first

what is notice of nonresponsibility

its what a property owner records and posts when work is being done on the home that they didnt order

what is a judgement

a decree issued by the court

what is a money judgement

when decree states what debtor owes and its usually damages caused by one person on another

what type of lien is a money judgement

a general, involuntary, equitable lien

what is writ of execution

when a money judgement is enforced by sheriff and they sell as much of the debtors property to relieve the debts

what is lis pendens

notice of a possible future lien to establish a priority and create a warning

what is writ of attachment

a court order against property of another person that directs sheriff to seize the property

what are estate and inheritance taxes

encumberances of a deceased persons real and personal propertywh

what kind of lien are estate and inheritance taxes

general, statutory, involuntary liens

what are muncipalitie loans

owner refuses to pay bills or utilitiesw

what kind of lien is a muncipalty lien

specific, equitable, involuntary

what is a bail bond lien

using property as collateral instead of cashwh

what kind of lien is a bail bond lien

specific, statutory, voluntary

what is a corporate franchise tax lien

allows corporations to do businesswh

what kind of lien is a corporation franchise tax lien

general, statutory, involuntary

what is an IRS tax lien

persons failure to pay any portion of federal taxes

what kind of lien is an IRS tax lien

a general, statutory, involuntary

what is a mill?

1/1000 of a dollar