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38 Cards in this Set
- Front
- Back
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Encumbrance |
A claim, charge or liability that attaches to and is binding on real estate; anything that affects title to real estate; a right or interest held by a party who is not the fee owner of the property |
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Lien |
Nonpossessory charge against property that provides security for a debt or an obligation of the property owner; its purpose is the right of foreclosure |
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The right of foreclosure in order to secure a debt |
What is the purpose of a lien? |
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Deed restriction |
Private agreements placed in the public record that affect the use of land; type of encumbrance |
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Restrictive Covenant |
-Private agreement usually imposed by the owner when property is sold that limits the way the real estate ownership may be used; -Frequently used by owner/developer to maintain specific standards in a subdivision; -The covenants are appurtenant - Also called protective covenants |
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Lis Pendens |
Litigation Pending -A recorded legal document giving constructive notice that an action potentially affecting title to a particular property has been filed in either a state or a federal court; -Title is effectively unmarketable during litigation; |
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General Lien |
A lien which affects all the property of a debtor, both real and personal |
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Specific Lien |
A lien which affects only a particular parcel of property |
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Lien Agent |
In NC, private residential and commercial construction projects costing more than $30k must designate a .... |
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Mechanic's Lien |
A specific, involuntary lien secured by interest in real property to give security to contractors, sub-contractors, architects, laborers and others who have performed work or furnished materials in the erection or repair of a building. |
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Priority of Liens |
-Property taxes and special assessments take priority of all other liens; -Generally, the first to record is first in right (Pure Race System) with Mechanic's Lien being exception; |
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Subordination Agreement |
-A written agreement between lien holders on a property that changes the priority of a mortgage, judgment, and other liens under certain circumstances |
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Easement |
A non-possessory right to the limited use of land of another for a specific purpose without ownership |
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Easement Appurtenant |
An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land; runs with the land on both parcels of property |
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Easement in Gross |
A personal interest in or right to use the land of another which benefits a person or entity, not a parcel of property (no dominant tenement) |
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Easement by Necessity |
Easement by implication of law which allows a landlocked land owner the right of ingress and egress over a grantor's land. |
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Easement by Prescription |
An easement acquired when a claimant has made continuous, visible, open, notorious and exclusive use of another's land, without the land owner's approval, for a period of 20 years (NC law defined) |
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Termination of an Easement |
-need no longer exists; -the two properties come under one ownership; -release of the right of easement to the owner of the servient tenement, -abandonment of easement, or -by the non-use of the prescriptive easement. |
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Servient Tenement (or estate) |
The tract of land over which an easement runs |
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Dominant Tenement (or estate) |
The tract of land which benefits from an easement |
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License |
A personal non-transferable privilege to enter the land of another for a specific purpose; not an encumbrance and does not run with the land |
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Encroachment |
An unauthorized intrusion of an improvement, or any part of an improvement, on the real property of another party |
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Ad Valorem |
According to Value |
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Assessed Value |
An official value based on the sales prices of comparable properties for property tax purposes |
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Mortgage or Deed of Trust Lien |
A voluntary specific lien on real estate given to a lender by a borrower as security for a real estate loan. |
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Real Property Tax Lien
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A specific involuntary lien placed on real estate for the taxes levied by a city or county
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Special Assessment Tax Lien
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A specific involuntary lien placed on real estate for taxes levied for improvements which benefited the taxed property.
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Tax Liens for Ad Valorem (Real estate taxes) and Special Assessment Taxes |
Which two types of liens are valid for 10 years and have priority over other types of liens? |
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NC Commercial Real Estate Broker Lien |
A specific involuntary lien filed by a real estate broker to protect his commission; must have a written agency agreement to represent property owner in a commercial transaction |
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Money Judgment |
An involuntary general lien against all current and future real estate and personal property, docketed by county which stems from a decree issued by a court which provides for the awarding of money and sets forth the amount of money owed by the debtor to the creditor |
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Personal Property Tax Lien
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An involuntary general lien which takes priority over other types of liens
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Mill |
1/1000 of a dollar or $0.001 |
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30 mills |
3% or $0.03 is how many mills? |
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Octennial Reappraisal |
A process where real property is appraised based on a statutory schedule and then is reappraised every eight years |
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September 1 |
The date that property taxes are due and payable each year |
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January 5 |
The date by which current real property taxes (due Sept 1) must be paid in full without penalty |
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Assessment |
An official valuation of property for the purpose of establishing value for tax purposes |
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January 1, 2014 |
If property tax is due and payable on Sept 1, 2014 and is not paid when due, what will be the effective date of the lien? |
