Chapter 9 Section 5

Question 1

liens defined

Answer 1

-a financial claim against a property by a creditor or unit of government that is used to secure the payment of a debt or other obligation owed by the property owner
-either the property owner must pay the lien holder or the lien holder is entitled to sue in court to have the property sold so payment may be made from the proceeds of the sale

Question 2

lien placed voluntarily or involuntarily

Answer 2

-a lien may be placed voluntarily by the owner or involuntarily by a creditor
-a mortgage, which is given voluntarily by a property owner, creates a lien, while an unpaid tax certificate is placed against the property involuntarily

Question 3

specific or general lien

Answer 3

-a lien may be specific to one property, or be general in nature and apply to any property the person may own

Question 4

superior lien

Answer 4

-takes precedence over all other types of liens
-if a foreclosure sale occurs, a superior lien is paid from the proceeds of the sale before any junior lien
-is involuntary and imposed by law without the owner’s consent

Question 5

real estate property taxes

Answer 5

-assessed and become a lien on January 1st of each year, even though the owner does not know the amount until the tax bill is received after Nov 1st of the same year
-since the assessment is in january, but not known or payable until november, taxes are paid in arrears

Question 6

special assessments

Answer 6

-for improvements, such as road paving, sidewalks, and sewers attach to the property until the full amount of the lien has been paid

Question 7

federal estate taxes

Answer 7

-become a lien at the time of death

Question 8

junior liens

Answer 8

-based on the date of recording in the public records, not the amount of the lien
-if there is more than one junior lien, the junior liens, will be paid based on whichever lien was recorded first

Question 9

mortgage lien

Answer 9

-a voluntary pledge of property as security for repayment of a loan

Question 10

vendor’s lien

Answer 10

-an owner who sells a property is entitled to a lien against the property that is being sold to secure any unpaid balance of the purchase price
-a court will impose a vendor’s lien only if no other form of security has been received
-if a mortgage is given to the vendor/seller, or if other real or personal property is used to secure the full purchase price of the property, the vendor’s lien is not available

Question 11

judgement lien

Answer 11

-imposed when a party is entitled to collect damages awarded by a court as the result of a lawsuit
-filed in the public access records against a property owned by the debtor to enforce payment of the court award

Question 12

construction lien (mechanic or materialman’s)

Answer 12

-a contractor or builder who has not been paid money that is due to them is entitled to a lien against property for materials or labor used to build or improve the property
-lien dates back in priority to the date on which the first materials were delivered or labor was first performed on the property
-contractor has 90 days from the date of completion of the work to file the lien in the public records if the property owner has not paid the amount owed

Question 13

federal income tax lien

Answer 13

-can be placed against the property of an individual for nonpayment of federal income taxes

Question 14

state corporate income tax lien

Answer 14

-corporations in florida are subject to a state income tax
-nonpayment can result in a state corporate income tax lien filed against corporately owned property

Question 15

foreclosure

Answer 15

-the enforcement of a lien
-accomplished by legal proceedings in court instituted by the lien holder as the result of nonpayment of debt
-foreclosure terminated the rights of the owner and results in the public sale of the property, whereby the proceeds are used to satisfy the debt

Question 16

lis pendens

Answer 16

-notice of a pending lawsuit against a property owner
-gives notice to a potential purchaser of the pending lawsuit that might later affect the title to the property
-not a lien unless lawsuit is successful

Question 17

liens for unpaid commission on residential property

Answer 17

-a broker cannot attempt to collect an unpaid commission by filing a lien on any property defined as residential property that has been the subject of their employment, with two exceptions
-a property owner may approve the filing by granting authority in a listing or sales contract
-or a broker may record a judgement rendered by a florida court in the amount claimed

Question 18

lien for payment of commission in nonresidential sales

Answer 18

-the Commercial Real Estate Sales Commission Lien Act presumes that a broker has a lien for collection and payment of commissions due in a nonresidential sales transaction
-broker is required to give written notice to the property owner in the listing agreement or in a separate document stating that, upon execution of the listing, the broker has a lien against the owner’s interest in the property