Lien
A charge or claim against a person's property made to enforce the payment of money.
Can be enforced by a government agency to recover taxes owed by the owner.
All liens are encumbrances, but not all encumbrances are liens.
Encumbrance
Any charge or claim that attaches to real property and lessens its value or impairs its use.
It is attached to the property
All liens are encumbrances, but not all encumbrances are liens.
Statutory lien
is created by statute
Equitable lien
a court-ordered judgment that requires a debtor to pay the balance on a delinquent charge account
General liens
Affect all property, both real and personal
lien attaches
to real property at the moment it is filed and recorded. a lien does not attach to personal property until the personal property is seized.
Specific liens
are secured by a specific parcel of real estate and affect only that particular property.
Effects of liens on title
because the lien attaches to the property, not the property owner, a new owner might lose the property if the creditors take a court action to enforce payment.
liens run with the land
Priority of liens
taxes and special assessments are paid first from a court-ordered sale
Subordination agreements
the holder of a superior or prior lien agrees to permit a junior lienholder's interest to move ahead of his or her lien.
1
2
Two moves ahead of one.
Ad valorem tax
according to value. are specific, involuntary, statutory liens
Appropriation
justify where the taxes are being spent, how much, and why
tax levy
the amount of property tax to be raised
equitable right of redemption
property owner pays the delinquent taxes before the sale.
certificate of sale
given to the highest bidder that pays the delinquent tax amount in cash. this certificate gives the holder the right to take possession of the property.
once sold, the old owner can't redeem the property even if they pay all back taxes and other costs
Special assessments
special taxes on real estate to fund public improvements to the property. ie new sidewalks put in
any pending or existing special assessments should be disclosed and the person who is responsible for payment should be identified.
Mechanic's lien
have work done on the house and i don't pay. contractor puts a lien on my house. involuntary lien
contractor has up to 6 months to file
Judgments
is a general involuntary lien on both real and personal property owned by the debtor.
lis pendens
Litigation pending. not a lien but notice of a possible future lien
Domestic Support Lien
involuntary liens if you owe overdue child support. deadbeat parent law