9.D.3 General and Specific Liens Flashcards

Questions and Answers

What does 'lien' mean?

A legal contract

A charge against or an interest in property (correct)

An investment strategy

A type of loan

What are voluntary liens?

Liens placed against the property by the owner to secure payment of a long-term debt.

What are involuntary liens?

Liens placed on property by law, without consent of the owner.

Which types of liens are considered general liens?

Estate tax lien Signup and view all the answers

What is a judgment lien?

A court ruling that gives a creditor the right to take possession of a debtor's real property. Signup and view all the answers

What does the federal income tax lien allow the IRS to do?

Secure or requisition the taxpayer's property to secure payment. Signup and view all the answers

What happens to federal estate tax liens upon a person's death?

They are automatically imposed against the deceased's assets. Signup and view all the answers

What is a specific lien?

A lien that applies only to a specific property given as security for a loan. Signup and view all the answers

What is a property tax lien?

A lien imposed by law upon a property to secure the payment of taxes. Signup and view all the answers

What does a special assessment lien do?

Becomes a lien immediately after the assessment is complete. Signup and view all the answers

What happens in a tax lien sale?

A lien on the property is sold Signup and view all the answers

What does a tax certificate represent?

Unpaid delinquent real property taxes and related costs for a specific parcel of property. Signup and view all the answers

Florida's Construction Lien Law allows unpaid contractors to file liens against property.

True Signup and view all the answers

Study Notes

Liens Overview

A "lien" is an encumbrance on property to secure debt payment or obligation performance.
Liens can be voluntary (by agreement) or involuntary (by law).
Liens limit the property owner's ability to sell and can lead to property sale to satisfy debts.

Voluntary Liens

Voluntary liens involve the property owner securing long-term debts, such as mortgages or home equity loans.

Involuntary Liens

Involuntary liens are placed by law without the owner's consent, such as tax liens or mechanics' liens.

General Liens

General liens affect all properties owned by a debtor within a jurisdiction.
Examples include judgment liens, income tax liens, and estate tax liens.

Judgment Lien

A court ruling that permits creditors to claim a debtor's real property for unpaid debts.
Applies to individuals and businesses, affecting both current and future properties.

Federal Income Tax Lien (IRS)

Allows the IRS to secure a taxpayer's property for unpaid taxes, impacting credit scores and financing opportunities.
Takes priority over all other liens, including mortgages filed earlier.

Estate Tax Lien

Imposed automatically against a deceased individual's assets to secure federal estate tax obligations.

Specific Liens

Specific liens do not cover all debtor properties; they target a particular property pledged as loan security.
Types include property tax liens, special assessment liens, mechanics' liens, vendor's liens, and mortgage liens.

Property Tax Lien

Legal claim against property to secure payment of owed taxes, establishing immediate priority as a lien.

Special Assessment Liens

These liens arise from local government assessments and apply only once the assessment is completed, related to property improvements.
Examples include liens from utility installations or street paving.

Mortgage Lien

A borrower voluntarily grants a lien on property to secure lender financing; priority based on the filing date of the mortgage.

Vendor's Lien

A seller may permit a buyer to finance a down payment via a purchase-money mortgage, placing a lien on the property until the total is paid.

Construction Lien (Materialman's Lien)

Filed by those providing labor or materials for property improvements, must be recorded within 90 days of service to enforce.

Tax Lien Sale

Involves selling a lien on a property instead of the property itself to recover delinquent taxes and associated costs.

Tax Certificate

Represents unpaid property taxes and assessments sold by tax collectors at public auctions or online.

Important Warning

Under Florida's construction lien law, unpaid contractors can file liens even if the property owner has paid in full. Owners must obtain written releases after each payment to avoid dual payments.

Description

This quiz provides key concepts and definitions regarding general and specific liens, including different types such as security interests and statutory liens. It's designed to help learners understand the implications of liens on property and their legal significance in real estate. Perfect for students studying property law or related fields.