types of liens Flashcards

types of liens Flashcards judgements liengeneral / involuntary Specific LienA lien affecting or attaching only to a certain, identified parcel of land or piece of property. include vendors' liens, mechanics' liens, mortgage liens, real estate tax liens, and liens for special assessments and utilities Voluntary LienA lien placed on property with the knowledge and consent of the property owner, such as when someone takes out a mortgage loan release of lienfiled when lien is paid and title is cleared encumberanceany charge or claim that attaches to real property and lessens its value Vendor's LienA lien that belongs to a vendor (seller) for the unpaid purchase price of land, where the vendor has not taken any other lien or security (such as a mortgage) beyond the personal obligation of the purchaser. - are uncommon and arise out of the use of owner financing to sell the property.General LienThe right of a creditor to have all of a debtor's property-both real and personal-sold to satisfy a debt.Type of lien classified according to the type of property involved.Involuntary LienA lien placed on property without the consent of the property owner. not a matter of choice; it is CREATED BY LAW and may be either statutory or equitable priority of liensfirst in, first right real estate tax lienspecific / involuntary vendor / vendee lienspecific / involuntary Statutory LienA lien imposed on property by statute-a tax lien, for example-in contrast to an equitable lien, which arises out of common law.Equitable Lienarises out of common law. A court-ordered judgment that requires a debtor to pay the balance on a delinquent charge account, and which can be filed in the county where the debtor owns property, would create an involuntary, equitable lien on the debtor's real estate.mortgage lienspecific / voluntary mechanics lienspecific / involuntary Subordination AgreementThe holder of a superior lien agrees to permit a later lien holder's interest to take precedence