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Questions and Answers
What is a lien?
What is a lien?
A legal hold or claim that one person has upon the property of another, used as security for a debt.
Who is a lienor?
Who is a lienor?
A person who has a right of lien upon the property of another.
Who is a lienee?
Who is a lienee?
A person whose property is subject to a lien.
What are the types of liens?
What are the types of liens?
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What is a mortgage lien?
What is a mortgage lien?
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What are the three major types of tax liens?
What are the three major types of tax liens?
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What is an ad valorem tax lien?
What is an ad valorem tax lien?
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What are special assessment tax liens?
What are special assessment tax liens?
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What happens when federal income taxes are not paid?
What happens when federal income taxes are not paid?
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What is a mechanics lien?
What is a mechanics lien?
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What occurs when a judgment is recorded in public records?
What occurs when a judgment is recorded in public records?
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What is a deficiency judgment lien?
What is a deficiency judgment lien?
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How can liens be categorized?
How can liens be categorized?
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What are voluntary liens?
What are voluntary liens?
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What are general liens?
What are general liens?
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Study Notes
Liens Overview
- A lien is a legal claim or hold on one person's property to secure a debt owed by another.
Key Terms
- 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.
Types of Liens
- 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.
Specific Types of Tax Liens
- 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.
Mechanic's Lien
- 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.
Judgment Liens
- Arise from court decisions awarding damages; failure to pay leads to a writ of execution allowing property sales to satisfy the judgment.
Deficiency Judgment Lien
- Results from foreclosure sales where proceeds do not cover the debt; allows the lender to seek payment from the mortgagor’s other properties.
Liens Classification
- 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 vs. Specific 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.
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Description
Test your knowledge of liens with this flashcard quiz. Learn essential terms like lien, lienor, and lienee, and explore different types of liens. Perfect for law students or anyone interested in real estate and property law.
