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Real Estate Taxes and Other Liens
Terms in this set (32)
A charge or claim against a person's property made to enforce the payment of money.
any charge or claim that attaches to real property and lessens its value or impairs its use
Four Ways to create a lien (VISE)
Voluntary, Involuntary, Statutory, Equitable
A lien placed on property with the knowledge and consent of the property owner.
Involuntary = not a choice, it is created by law.... it may be either statutory or equitable
Statutory is created by statue.
arises out of common law
A court-ordered judgement that requires a debtor to pay the balance on a delinquent charge account, and which can be filed in the country where the debtor owns property, would create an involuntary equitable lien on the debtor's real estate.
Affects all property, both real and personal, of a debtor
- A lien attaches to real property at the moment it is filed and recorded. In contrast, a lien does not attach to personal property until personal property is seized.
A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
A lien belonging to the vendor (seller) for the unpaid purchase price of the property, when the vendor has not taken any other lien or security, such as a mortgage, beyond the personal obligation of the purchaser.
Effect of lien on title
The existence of a lien does not necessarily prevent a property owner from transferring title to someone else.
- The lien might reduce the value of the real estate because few buyers will take on the risk of a property that has a lien on it.
Priority of Liens
refers to the order in which claims against the property will be satisfied if the property is sold by the debtor
- first to record, first in right
An encumbrance, second in priority, to a previously recorded lien
A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.
Ex.) Letting the junior lien move up.
The seller name is still on the deed
The General Real Estate Tax or Ad Valorem Tax
Based on the value of the property being taxed and are specific, involuntary, statutory liens.
- Property tax pays for a wide range of government services and programs, including those of
- cities, towns, boroughs, and villages
- school districts
- drainage districts
- hospital districts
Exemption from General Taxes
- various municipal organization
- state and federal government
- religious and charitable organization
Real Estate Assessment
is valued for tax purposes by county or township assessors or appraisers
- Done every 3 years, to assess to value of your home
- In MD, we have a cap. They cannot increase more than 10%
Assessment Equalization Factor
Is used to achieve uniformity. An equalization factor may be applied to raise or lower assessments in a particular district or county.
In Maryland, it is done semi-annual billing. Every 6 months
Enforcement of Tax Liens
Real Estate taxes must be valid to be enforceable
1/1000, of a dollar or $.001
is a tax charged on real estate to fund public improvements to the property, and it creates a lien for the amount of the assessment on the property.
-Property owners in the improvement area are required to pay for the improvements because their properties benefit directly from them.
- statutory, by law
A Specific, voluntary lien on real estate given to a lender by a borrower as security for a real estate loan
a specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property.
notice of nonresponsibility
If improvements that were not ordered by the property owner have commenced, the property owner should execute this document to be relieved from possible mechanics' liens.
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.
Federal estate taxes and state inheritance taxes
are general, statutory, involuntary liens that encumber a deceased person's real and personal property.
Certificate of sale
The document given to the individual who successfully bids and purchases a property at a Sheriff's Sale. It does not convey title to the property... it gives the right to take possession of the proerty.
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.
-if the property is not redeemed within statutory period, the certificate holder can apply for the tax deed (sheriff deed)
Equitable Right of Redemption
The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges.
Warns any potential purchaser that a property is subject to a pending legal action. Such a notice might prompt a buyer to consider very.
is a a general, involuntary, equitable lien on both real and personal property owned by a debtor.. must be filed in every county in which the judgment debtor owns property.
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