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47 Cards in this Set
- Front
- Back
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Does a lien represent actual ownership? |
No this is an interest in the property. An encumbrance is any charge or claim that attaches to real property and lessens the value. |
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What is a lien that is done through using a mortgage or intentionally? |
A voluntary lien |
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What is a lien created involuntarily. |
A statutory lien, created by statute |
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What i a lien created by the court to ensure the payment of a judgement as well as by agreement? |
An equitable lien |
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What types of liens affect all property, including personal property? |
General lien A lien attaches to real property at the moment it is filed. A lien does not attach to personal property until the personal property actually is levied on or seized by sheriff |
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What are liens that affect only that particular property. Including mechanics liens, mortgage liens and real estate tax liens? |
Specific liens |
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Can the title be conveyed to someone else even with a lien? |
Yes, the lien might reduce value, but it is attached to the property and binds all successive owners until lien is paid in full. |
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What should be done before purchasing a house? |
A buyer should insist on a title search before closing a real estate transaction to see recorded liens. |
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Priority of liens are recognized how? |
First to record first in right Except: Real estate taxes and special assessments take priority regardless of order. |
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What are written agreements between lien holders to change the priority of mortgages, judgement and other liens? |
Subordination agreement |
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What are the two types of real estate taxes? |
General real estate taxes and special assessments Both are levied against specific parcel of property and automatically become tax liens on those properties |
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What are ad valorem taxes? |
General real estate taxes, which are based on the value of the property being taxed. Specific, involuntary, statutory liens. |
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Why do local governments favor real estate property taxes? |
Because they cannot be hidden and is relatively easy to value |
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Who are exempted from General Taxes? |
Various municipal organizations cities and counties state and federal governments religious and charitable organizations hospitals education institutions |
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Who assesses real estate for property tax purposes? |
County or township assessors or appraisers |
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How do you determine taxes in Illinois? |
Locate assessed value (33.3% of fair market value, cook county is a sliding scale) Always equalize value first Subtract any exemption Tax rate x adjusted assessed value = real estate taxes |
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What is an equalization factor? |
This is applied to raise or lower each property in the area and multiplied by the Equalization factor to acquire an equalized assessment. |
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Parcels receive reassessments every how often? |
Every 4 years |
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How are real estate tax rates calculated? |
Begins with the adoption of a budget by each taxing district. This includes an estimate of all expenditures needed for the year. The net amount remaining to be erased from real estate taxes is then determined by the difference between these figures |
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What is the tax rate formula? |
Proposed Expense / total assessed property values = Tax rate |
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What is the way taxing body actually authorizes the expenditure of funds and provides for the sources of funding? |
Appropriation Involves the adoption of an ordinance or passage of laws that state specific proposed taxation |
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Who prepares and issues only one combined tax bill to each parcel of property? |
The county collector |
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General real estate taxes are levied annual and become what? |
A prior first lien |
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General real estate tax are payable when? |
One half by June 1st and second half by September 1st Except Cook county |
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What is the penalty rate if taxes aren't paid? |
1.5% per month |
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In cook county when is the first and second installment due? |
First business day in March The second varies because the bill relies on the delivery of various sets of data by other state and county agencies. |
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How are real estate taxes that have remained delinquent collected? |
Tax sale |
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Statutory Requirements for enforcement of tax liens are complex. If the property owner fails to pay taxes, the property ultimately is sold how? |
Annual tax sale Forfeiture Sale Scavenger Sale |
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WHAT HAPPENS IF YYOU HAVE NOT PAID the second installment of taxes? |
The county collector can enforce the tax lien and request the circuit court order a tax sale |
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What happens to tax liens if they are not paid off? |
They turn into a tax deed |
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What is the statutory period allowed for redemption on properties with six of fewer units? |
2.5 years from the date of sale |
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What happens if there are no bids on a property at the annual tax sale? |
The property is forfeited to the state. Anyone who wants to purchase the property for outstanding taxes may make application to the county. |
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What is a scavenger sale? |
If the taxes have no been paid on a property for two years or more, the property may be sold at at a scavenger sale. Property sold to highest bidder. Buyer doesn't have to pay tax lien, just current taxes. |
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Who can't bid in a scavenger sale? |
Owners or people who are delinquent on taxes by two or more years. |
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What are taxes levied on real estate to fund public improvements to the property? |
Special assessments Such as curbs, gutters, sidewalks, lighting. |
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How are special assessments generally due? |
Due in equal installments, plus interest over a period of 5-10 years. With the first installment usually due during the year following the public authority's approval of the assessment. |
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What are special taxing districts in municipalities that are established by ordinance, often at the request of developers of new housing subdivisions |
Special Service areas Assessments are billed annually on property tax bills, generally for 20 - 30 years |
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What is a voluntary lien on real estate given to a lender by a borrower as security for a real estate loan? |
Mortgage lien |
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What is specific involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property? |
A mechanics lien |
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A contractor who makes improvements to an owner-occupied single family residence must give the owner written notice when? |
10 days after recording a lien against any property of the owner. |
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When does the contractor's lien expire after completion of the work? |
Two years |
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What is an order issued by a court that settles and defines the rights an obligations of the parties to a lawsuit? |
A judgement Good for 7 years, can be renewed for 7 more |
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When a suit that is filed that affects real estate, a special notice of a possible future lien is called what? |
Lis Pendens |
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What is a form that the court retains custody of the property until the suit concludes? |
Writ of attachment |
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What are general, statutory, involuntary liens that encumber a deceased person's real and personal property? |
Estate and inheritance tax liens |
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Posting bail in the form of real estate rather than cash is? |
Bail bond lien |
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If a broker does not receive compensation for leasing, or for sale what can they do? |
The Commercial Real Estate Broker Lien Act permits commercial sponsoring brokers to place a lien on a property in the amount of the commission they are entitled. Only to commercial property, must be recorded before closing to be enforceable. |
