Types Of Liens

Front 1

A non-possessory right or interest in real property held by someone other than the property owner.

Back 1

Encumbrances

Hint 1

The interest can be financial or non-financial in nature. A financial intrest only affects title; a non-financial interest also affects the use or physical condition of the proerty.

Front 2

Financial encumbrances are more commonly called:

Back 2

Liens

Front 3

A lien is held by:

Back 3

A creditor of the property owner.

Front 4

What happens if the owner doesn't pay off the debt owed to the creditor?

Back 4

The security interest allows the creditor to force the property to be sold so that the creditor can be repaid.

Front 5

When a creditor forces the sale of property due to the owner not paying off the debt.

Back 5

Forclosure

Front 6

A creditor who has a lien (a security interest in) the debtor's property is called:

Back 6

A Secured Creditor.

Hint 6

The lien does not prevent the debtor from transfering the property, but the new owner takes title subject to the lien. The creditor can still forclose if the debt is not repaid.

Front 7

A mortgage and a Deed of trust is called:

Back 7

A Voluntary Lien

Hint 7

When a debtor voluntarily gives a lien to a creditor, usually as security for a loan.

Front 8

Property tax liens and judgment liens are:

Back 8

Involuntary Liens

Hint 8

Sometimes called Satutory liens.

Front 9

A lien that attaches to all of the debtor's property.

Back 9

A General Lien

Front 10

A lien that attaches to one particular piece of property.

Back 10

A Specific Lien

Front 11

A Specfic, voluntary lien created by a contract between the property owner, and the creditor.

Back 11

Mortgages

Front 12

In a mortgage the buyer is refered to as:

Back 12

The Mortgagor

Front 13

Used for the same purpous as a mortgage. However, there are three parties to a trust deed rather than the two found in a mortgage transaction.

Back 13

A Deed of Trust

Front 14

The mortgagee is usually a:

Back 14

Lender

Hint 14

The mortgagee will not loan money unless the borrower gives a lien as security for repayment.

Front 15

In a deed of trust the borrower is called:

Back 15

A Trustor

Front 16

The most significant difference between mortgage and deeds of trust:

Back 16

The foreclosure processes

Front 17

The lender or creditor in a deed of trust is called the:

Back 17

Beneficiary

Front 18

The trustee in a deed of trust:

Back 18

"A third party, often an attorney or title insurance company"

Front 19

Who can claim a construction lien against a property?

Back 19

"A person that provides labor, materials or professional services for the improvement of the property."

Front 20

Construction liens are often called:

Back 20

Mechanic’s liens

Front 21

What is a Materialman’s Lien?

Back 21

A construction lien claimed by someone who provides materials (as opposed to labor) is sometimes called a materialman’s lien

Front 22

In certain cases a potential construction lien claimant is required to file the property owner a notice of right to claim a lien. What is this notice called?

Back 22

Pre-lien Notice

Front 23

How long after the claimant has stopped working on or providing materials for the project does he have to record the claim of lien?

Back 23

90 days.

Front 24

A voluntary specific lien

Back 24

Mortgages or Deeds of trust

Front 25

What classification is a Judgment lien?

Back 25

An involuntary general lien

Front 26

What is an involuntary lien?

Back 26

"Property taxes, special assessments, construction lien."

Hint 26

Just name the different types of liens.

Front 27

How much time does a lien holder have to file a court action to foreclose on a construction loan?

Back 27

Eight months after the claim of lien was recorded.

Front 28

If a judgment lean isn’t paid the property can be sold by a designated official to satisfy the judgment. To do this the court issues a:

Back 28

Writ of execution.

Front 29

A Writ of Attachment is:

Back 29

A form that directs the sheriff to seize enough of the defendant’s property to satisfy the judgment the plaintiff is seeking.

Front 30

Attachment Liens

Back 30

Used to prevent the defendant from selling his property and disappearing.

Front 31

What is Lis Pendens:

Back 31

A document recorded by the plaintiff when a lawsuit that may affect title to real property is pending. Latin for “Action Pending”

Front 32

When property is taxed according to its value.

Back 32

Ad Valorem

Front 33

Property Tax Liens

Back 33

"When property taxes are levied, a lien attaches to the property until they are paid."

Front 34

"When a tax is levied due to local improvements such as road paving or sewer lines that benefit some but not all, property owners within the county. It is called:"

Back 34

Special Assessments.

Front 35

Other Tax Liens

Back 35

"Federal income taxes, estate or inheritance taxes, and gift taxes, can result in liens against property."

Front 36

Lien Priority

Back 36

"When there are more than one lien on a piece of property, liens are paid according to their priority."

Front 37

Lien Priority is determined by:

Back 37

The date a lien was recorded.

Front 38

Which Lien is paid off when pertaining to Lien Priority

Back 38

"The lien that was recorded first is paid first, even though another lien may have been created first."

Front 39

What are the exceptions to the Lien Priority rule?

Back 39

Property tax and special assessment liens are given priority over all other liens.

Back 40

"Construction liens are paid by the date the claimant began working on the project, even though the claim of lien was recorded later on."

Front 41

Homestead Law

Back 41

State laws that give homeowners limited protection against lien foreclosure from general judgment liens.

Front 42

What is a Homestead

Back 42

"An owner-occupied dwelling, together with any appurtenant buildings and land."

Front 43

A judgment creditor cannot foreclose unless the net value of the property is greater than:

Back 43

"$40,000, minus all liens that are senior to the lien being foreclosed on."