Study Cards - Tucker School of Real Estate

Chapter 10

Ad Valorem Tax

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Real Estate taxes allocated according to value.

Lien

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Claim or charge attached to real property used to enforce the re-payment of a debt.

Writ of Attachment

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Judicial intervention where the court takes title to the property until the law suit is concluded. Title cannot be conveyed until the writ is removed.

Lis Pendens

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Recorded notice of pending law suit involving real property. Not a lien, just notice of a possible future lien.

Mechanic's Lien

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A specific involuntary lien on real property designed to protect those who have provided labor or material used to improve it.

Mill

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Method of quoting real estate tax rates. One mill = 1/1000 of one dollar. (i.e. 30 mills equals $0.030 and would be multiplied by the assessed value to determine the tax bill).

Judgment Lien

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A general involuntary lien against a person and all their property (real and personal) (i.e. a court judgment)

Equalization Factor

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A mechanism to adjust the effective real property tax on a parcel whose assessment has fallen out of line with other properties.

Mortgage Lien

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A specific voluntary lien placed on real property that has been pledged as collateral for a loan.

Special Assessment

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A real estate tax levied against only those properties that will benefit from specific capital improvement projects such as sewers or street lights. (Always a specific lien but could be either voluntary or involuntary).

Specific Lien

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A lien placed against a specific piece of property. (i.e. if you borrow money to buy 123 Main St. and pledge that property as collateral, a lien will be created against only 123 Main St.)

Equitable Right of Redemption

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The right of a debtor to stop the forced sale of their real property by repaying the entire debt prior to sale.

Satisfaction

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Instrument provided by a creditor acknowledging the repayment of a debt. (Recording this satisfaction removes the lien created by the mortgage).

Subordination

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When a lien holder agrees to lower their position allowing another to have priority.

Assessment

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Official valuation of real property for tax purposes.