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Types of Liens


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A non-possessory right or interest in real property held by someone other than the property owner.
Financial encumbrances are more commonly called:
A lien is held by:
A creditor of the property owner.
What happens if the owner doesn't pay off the debt owed to the creditor?
The security interest allows the creditor to force the property to be sold so that the creditor can be repaid.
When a creditor forces the sale of property due to the owner not paying off the debt.
A creditor who has a lien (a security interest in) the debtor's property is called:
A Secured Creditor.
A mortgage and a Deed of trust is called:
A Voluntary Lien
Property tax liens and judgment liens are:
Involuntary Liens
A lien that attaches to all of the debtor's property.
A General Lien
A lien that attaches to one particular piece of property.
A Specific Lien
A Specfic, voluntary lien created by a contract between the property owner, and the creditor.
In a mortgage the buyer is refered to as:
The Mortgagor
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.
A Deed of Trust
The mortgagee is usually a:
In a deed of trust the borrower is called:
A Trustor
The most significant difference between mortgage and deeds of trust:
The foreclosure processes
The lender or creditor in a deed of trust is called the:
The trustee in a deed of trust:
"A third party, often an attorney or title insurance company"
Who can claim a construction lien against a property?
"A person that provides labor, materials or professional services for the improvement of the property."
Construction liens are often called:
Mechanic’s liens
What is a Materialman’s Lien?
A construction lien claimed by someone who provides materials (as opposed to labor) is sometimes called a materialman’s lien
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?
Pre-lien Notice
How long after the claimant has stopped working on or providing materials for the project does he have to record the claim of lien?
90 days.
A voluntary specific lien
Mortgages or Deeds of trust
What classification is a Judgment lien?
An involuntary general lien
What is an involuntary lien?
"Property taxes, special assessments, construction lien."
How much time does a lien holder have to file a court action to foreclose on a construction loan?
Eight months after the claim of lien was recorded.
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:
Writ of execution.
A Writ of Attachment is:
A form that directs the sheriff to seize enough of the defendant’s property to satisfy the judgment the plaintiff is seeking.
Attachment Liens
Used to prevent the defendant from selling his property and disappearing.
What is Lis Pendens:
A document recorded by the plaintiff when a lawsuit that may affect title to real property is pending. Latin for “Action Pending”
When property is taxed according to its value.
Ad Valorem
Property Tax Liens
"When property taxes are levied, a lien attaches to the property until they are paid."
"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:"
Special Assessments.
Other Tax Liens
"Federal income taxes, estate or inheritance taxes, and gift taxes, can result in liens against property."
Lien Priority
"When there are more than one lien on a piece of property, liens are paid according to their priority."
Lien Priority is determined by:
The date a lien was recorded.
Which Lien is paid off when pertaining to Lien Priority
"The lien that was recorded first is paid first, even though another lien may have been created first."
What are the exceptions to the Lien Priority rule?
Property tax and special assessment liens are given priority over all other liens.
Homestead Law
State laws that give homeowners limited protection against lien foreclosure from general judgment liens.
What is a Homestead
"An owner-occupied dwelling, together with any appurtenant buildings and land."
A judgment creditor cannot foreclose unless the net value of the property is greater than:
"$40,000, minus all liens that are senior to the lien being foreclosed on."

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