Liens Vocabulary Quiz

A lien is a legal claim or hold on one person's property to secure a debt owed by another.

Lienor: The individual who holds the right to impose a lien on someone else's property.
Lienee: The individual whose property is subject to a lien, typically owing a debt.

Mortgage Liens: Created when a property owner borrows money using the property as collateral, facilitating the lender's security interest in the property.
Tax Liens: Includes three major types: ad valorem, special assessment, and federal income tax liens.
Mechanic’s Liens: Protects those supplying labor or materials for construction; it allows lienors to place a lien on the property if unpaid.
Judgment Liens: Arise when a court awards monetary damages to a plaintiff; it becomes a lien against the defendant's properties once recorded.
Deficiency Judgment Liens: Occur when a property is sold after foreclosure but does not cover the outstanding debt, allowing the lender to claim against the mortgagor's other assets.

Ad Valorem Tax Liens: Created when ad valorem property taxes remain unpaid; assessed based on property value.
Special Assessment Tax Liens: Imposed on properties benefiting from specific improvements (e.g., street lights); liens are removed once taxes are paid.
Federal Income Tax Liens: Occur when federal taxes go unpaid, applying to all property of the lienee.

Protects suppliers of labor or materials for building projects; requires filing a lawsuit to enforce the claim, along with a notice of "lis pendens" to protect the lien while the lawsuit is pending.

Arise from court decisions awarding damages; failure to pay leads to a writ of execution allowing property sales to satisfy the judgment.

Results from foreclosure sales where proceeds do not cover the debt; allows the lender to seek payment from the mortgagor’s other properties.

Voluntary Liens: Created by agreement, e.g., mortgage liens.
Involuntary Liens: Imposed by law, e.g., tax liens, mechanic's liens, and judgment liens, also referred to as statutory liens.

General Liens: Attach to all properties owned by the lienee; includes federal income tax liens and judgment liens.
Specific Liens: Attach to specific properties; examples and definitions not included but distinct from general liens.