Other liens on real property Flashcards

Other liens on real property Flashcards Satisfaction of judgment(satisfaction piece) When real property is sold to satisfy a debt, the debtor should demand a legal document known as a satisfaction of judgment. Filing this clears the record of the lien. In those states using a deed of trust, a deed of reconveyance must be filed with the clerk of the court or in some states, the recorder of deeds AttachmentA creditor may seek a writ of attachment to prevent a debtor from conveying title to previously unsecured real estate while a court suit is being decided. A writ of attachment is a court order against the property until the suit concludes, which means the court retains custody of the property until a lawsuit is concluded.Mechanics liensInvoluntary, statutory, specific liens created in favor of contractors, Survey or's, architects, equipment lessors, laborers, material suppliers, and others who have performed work or furnished materials in the erection or repair of the building, to give security to those who have performed the work. There must have been a contract (expressed or implied, but usually written) between the owner and the contractor.judgment liens priority is established by one or a

combination of the following as provided by state law:

Date the judgment was entered by the courtDate the judgment was filed in the recorders officeDate a writ of execution was issued Judgment lienInvoluntary, equitable, General liens, on both real and personal property owned by the debtor. The formal decision of the court upon respective rights and claims of the parties to an action or suit. After judgment has been entered and recorded with the county recorder, usually becomes a general lien on the property of the defendant.IRS tax lienA federal tax lien is General, statutory, involuntary lien on all real and personal property held by the delinquent tax payer. Results from a persons failure to pay any portion of federal taxes, such as income and withholding taxes. It's

priority, is based on the date of filing or recording: it does

not supersede previously recorded liens.(which is also true of most state income tax liens) Money judgmentWhen the decree establishes the amount a debtor owes and provides for money to be awarded, it is called a money judgment Mortgage Lien (Deed of trust liens)Voluntary specific liens used in real estate financing.Voluntary lien on real estate given to a lender by a

borrower as security for a real estate loan. It becomes a lien on real property when the lender records the documents in the county where the property is located.

Estate and inheritance tax liensFederal and state taxes and state inheritance taxes (as well as the debts of descendants) are general, statutory, involuntary liens that encumber a deceased persons real and personal property. These taxes and debts are usually paid during the probate court proceedings Mechanics lien priority Established by:The date the construction began or materials were first furnishedThe date the work was completedThe date the individual subcontractors work was either commenced or completedThe date the contract was signed or work was orderedThe date a notice of the lien was recorded, filed, posted, or servedIn some states it may be given priority over previously recorded liens, except for real estate taxes and special assessments.Corporate Franchise tax liensGeneral, statutory, involuntary lien on all Real and personal property owned by a corporation. Liens for taxes imposed on corporations as a condition of their conducting business in the state.Utility liensMunicipalities have the right to impose a specific, equitable, involuntary lien on the property of an owner who refuses to pay bills for the municipal utility services.Lis Pendens (litigation pending)When any suit that affects title to or possession of real estate is filed, this special notice is recorded. A lis pendens is not a lien, but notice of possible future Lien. It notifies prospective purchasers and lenders that there is a potential claim against the property. It establishes priority for the later lien which is backdated to the recording date of the lis pendens.Bail bond lienA real estate owner charged with a crime that results in trial May post bail in the form of real estate rather than cash.This creates a specific, statutory, voluntary lien against the owners real estate. This lien assures the appearance of the defendant in court. If the accused fails to appear in court, the lien may be enforced by the sheriff or another court officer.Writ of executionTo enforce a judgment, the creditor must obtain a writ of execution from the court. This directs the sheriff to seize and sale as much of the debtors property as is necessary to pay both the debt and the expenses of the sale.Notice of nonresponsibility (To be relieved from possible

mechanics liens:)

If improvements that were not ordered by the property owner have commenced. The property owner should execute a document called a notice of nonresponsibility to be relieved from possible mechanics liens.