55 Questions
What are the two main categories of limitations on legal ownership interests that do not grant possession?
Encumbrances impacting use and encumbrances impacting ownership, value, and transferability
What is the right to use portions of another's property called?
Easement
What type of easement prohibits use?
Negative easement
When does a lien terminate its attachment to a property?
Upon payment and recording satisfaction
In what state does a lien convey ownership if it is part of a mortgage?
Title theory state
What type of lien does not convey ownership unless part of a mortgage in a title theory state?
Personal lien
How do multiple liens affect a property?
Decrease its equity
What type of lien can a debtor create by agreeing to use their property as collateral?
Voluntary lien
What is the main difference between a voluntary lien and an involuntary lien?
Involuntary liens can be placed on a property for unpaid taxes or fees.
What determines the priority of a security interest in case of default?
The order of registration or creation.
Which type of lien gives the lender equitable title while the borrower holds legal title in a lien theory state?
Mortgage Lien
What happens during a non-judicial foreclosure?
Deficiency judgments are not applicable.
What defines a particular lien?
It is the right to keep only goods related to claims until they are settled.
In what order are liens against a property satisfied?
By superior versus junior class and date of recordation
Which lien type is paid before junior liens or after superior liens based on the date of recording?
Federal Income Tax Liens
What is the main purpose of a deed in lieu of foreclosure?
Avoid actual foreclosure with loan concessions provided by lenders.
What distinguishes a junior lien from a senior lien?
Junior lien has lower priority in repayment compared to senior lien.
What is the main difference between a superior lien and a junior lien?
Superior liens have higher priority than junior liens.
In a lien theory state, what does the lender of the mortgaged property hold?
Equitable title
What is the main purpose of a deed in lieu of foreclosure?
To avoid actual foreclosure with lender approval
In a non-judicial foreclosure, who is granted the 'power of sale'?
Lenders without any suit
When does a junior lien get paid back in full?
After senior liens are paid back in full
What determines the ranking of lien types based on payment priority?
The order of registration or creation
Under a mortgage lien, what right does it give borrowers in terms of reclaiming their property?
'Power of sale' to reclaim the property after foreclosure sale
Which type of foreclosure entails a court-ordered public sale to enforce the lien?
Judicial Foreclosure
'Strict Foreclosure' involves granting 'power of sale' without which feature?
'Court Involvement'
What gives lenders direct title transfer without public sales in a foreclosure process?
Non-Judicial Foreclosure
What is the primary effect of a lien recorded on title?
Decreases the ownership rights of the property
What characteristic distinguishes a personal easement from a commercial easement?
Transferability
In what scenario would a negative easement be granted?
When the easement holder wants to prohibit use
Which statement best describes the termination of a personal lien?
Terminates upon payment and recording satisfaction
What differentiates an easement in gross from an easement appurtenant?
The location of the dominant tenement
What happens to an easement in gross upon the death of the holder?
Terminates and is not transferable
How do voluntary and involuntary liens differ in their creation?
Voluntary liens are established by agreement, while involuntary liens are imposed by law
What is the key characteristic of a voluntary lien regarding ownership conveyance?
'A voluntary lien conveys ownership only if part of a mortgage'
'Party wall easements in shared structures typically aim to:'
'Limit damage or destruction to shared structure'
What is the key characteristic of a voluntary lien regarding ownership conveyance?
It does not convey ownership unless part of a mortgage in a title theory state
How do multiple liens affect a property?
They can encumber the property simultaneously
What is the primary effect of a lien recorded on title?
It reduces the equity of the property by an amount equal to the lien
Which type of lien gives the lender equitable title while the borrower holds legal title in a lien theory state?
Mortgage lien
'What gives lenders direct title transfer without public sales in a foreclosure process?'
'Strict Foreclosure'
'What is the main difference between a superior lien and a junior lien?'
'Superior liens have priority over junior liens'
'Under a mortgage lien, what right does it give borrowers in terms of reclaiming their property?'
'Legal title'
'What determines the ranking of lien types based on payment priority?'
'Recording date'
'What characteristic distinguishes a personal easement from a commercial easement?'
'Transferability'
'What is the right to use portions of another's property called?'
'Easement'
What distinguishes a voluntary lien from an involuntary lien?
Voluntary liens are the right to keep goods until debts are settled, while involuntary liens are imposed without the debtor's consent.
What determines the priority of a senior lien over a junior lien?
The order of registration or creation
What is the main difference between real estate tax liens and federal income tax liens?
Federal income tax liens are paid only after junior liens, whereas real estate tax liens are paid before junior liens.
What is the main characteristic of a deed in lieu of foreclosure?
It allows sellers to avoid foreclosures with loan concessions from lenders.
When does a junior lien get paid back in full?
After the senior lien has been paid back in full
What is the key difference between a strict foreclosure and a mortgage lien foreclosure?
Mortgage lien foreclosure requires court action for title transfer, whereas strict foreclosure does not.
'Power of sale' is a feature associated with which type of foreclosure?
Non-Judicial Foreclosure
In which type of state do lenders hold equitable title on mortgaged property?
Title Theory State
What determines the ranking of lien types based on payment priority?
'Date of Recording' particular to the liens
Test your knowledge on the different types of liens that creditors can impose on properties. Learn about voluntary and involuntary liens, general and specific liens, and the rights and obligations that come with each type.
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