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24 Cards in this Set

  • Front
  • Back
Encumbrance (def.)
Any interest or claim in another's land which in some manner burdens or diminishes
the value of the property.
Encumbrance (4 types)
(1) liens--affect title, such as mortgages, legal attachments, mechanics' liens, and tax liens
(2) encroachments--burden or limit the use of land
(3) restrictions
(4) easements
Lien (def.)
A charge or claim against property as security for the payment of a debt.

Runs with the land.
Voluntary lien
Created by agreement, such as a mortgage.
Involuntary lien (2 types)
(1) Statutory--arising by operation of law, such as a property tax or mechanic's lien
(2) Equitable--arising from common law, such as an attachment.
Statutory Lien
Involuntary, arising by operation of law, such as a property tax or mechanic's lien.
Equitable Lien
Involuntary, arising from common law such as an attachment.
General Liens
Attaches all the property of a debtor in a **given jurisdiction** to secure payment of
the property owner's **personal debt**, as in from lawsuits, or government liens for non-payment
of income-tax.
Special (or Specific) Liens
Affect only a specific property.

Ex. Real estate tax liens, mechanic's liens.
Although a mortgage is a conditional conveyance of title, it is also treated as a lien.
**Voluntary** and **special.**
An **involuntary equitable** lien, general or special.

A legal process, filed during a pending court action to charge the defendant's real estate
as security for the satisfaction of a judgment. Intended to stop the defendant
from transferring title in order to hide assets.

**Notice made public by the recording of a lis pendens (suit pending) at the registry of deeds.
lis pendens (latin)
"suit pending"
Decree or verdict issued by a court setting forth the amount of money owed by a debtor to a

In some jurisdictions, automatically become a general lien against real property.

In Massachusetts, payment is recoverable through court action called a writ of execution
directing a sheriff to seize (levy) and sell the debtor's property to satisfy the debt. The
**debtor has one year following a sheriff's sale to pay the debt plus interest and costs
to redeem title.**
writ of execution
court order to remove a tenant
Sheriff's deed
A deed issued as a result of a court ordered foreclosure sale.
Mechanic's Lien
(1) Statutory special lien created in favor of contractors and laborers to secure payment
for material supplied and services rendered in the improvement, repair or maintenance of
real property.

(2) There must be either an expressed or implied contract between the supplier and the
property owner.

(3) Lien accrues in favor of sub-contractors, suppliers, and laborers independently
of the original contractor. Subcontractors have a direct lien against the owner and do
not have to go through the primary contractor.
Materialman's Lien
Similar to a mechanic's lien, but cover building materials only.
Municipal Liens
Involuntary, statutory liens on a specific property to secure the payment of real estate
taxes, sewer and water charges, and **special assessments for public improvements**.
Government Liens
May be filed by federal and state government for non-payment of income taxes and employer
payroll deduction.
Ways to discharge liens
(1) payment and satisfaction of the debt.
(2) filing of a bond.
(3) agreement of the parties.
(4) dissolution by operation of law.
Government Liens (for Estate and Inheritance taxes)
Statutory. Must be discharged by the administrator or executor prior to conveying title to property in a deceased person's estate.
Priority of Liens
(1) Real estate taxes and Special assessments
(1a) In Massachusetts, 6 months condo fees.
(2) All others by date, including mechanic's lien
Dissolution of Mechanic's Lien
Dissolves automatically unless, within a specific time after performance has commenced or ended, a notice of the claim (stating the details and payment overdue) is filed with the registry of deeds.
Enforcement of Mechanic's Lien
In Massachusetts, claim may be enforced by a civil action in the superior court. The court may order a sale of all or part of the property to satisfy the claim.