Modern Real Estate Practice in Pennsylvania 12th Edition Chapter 8: Real Estate Taxes and Liens

8Real Estate Taxes and Liens Learning objectives –Identify the various classifications of liens –Describe how real estate taxes are applied through assessments, tax liens, and the use of equalization ratios –Explain how nontax liens, such as mechanics’ liens, mortgage liens, and judgment liens are applied and enforced –Distinguish the characteristics of voluntary, involuntary, statutory, and equitable liens –Define key terms 2 ©2012 Kaplan, Inc.

3 8Real Estate Taxes and Liens Liens –Charge or claim against a property as security –Monetary –An interest in property Creating liens (VISE) –Voluntary — created intentionally –Involuntary — created by law Statutory—created by statute Equitable—created by common law

8Real Estate Taxes and Liens Liens –General Affect all property, both real and personal –Specific Secured by specific property –Effects of liens on title –Priority –Subordination agreements 4 ©2012 Kaplan, Inc.

5 8Real Estate Taxes and Liens Liens SpecificGeneral Voluntary Mortgage Involuntary Taxes Vendor’s Liens Mechanic’s Liens Involuntary Taxes Equitable Judge Scale Statutory Law EquitableStatutoryEquitableStatutory

8Real Estate Taxes and Liens Real estate tax liens –General (ad valorem) Exemptions from general taxes Assessment Equalization Tax rates and billing Enforcement –Tax sale –Right of redemption — equitable or statutory 6 ©2012 Kaplan, Inc.

7 8Real Estate Taxes and Liens Real estate tax liens –Special assessments, local improvement district taxes –Homeowner tax relief

8Real Estate Taxes and Liens Other liens on real property –Mortgage liens –Mechanics’ liens Waiver of liens Stipulation against liens Release from liens Notice of nonresponsibility –Judgment liens Lis pendens Attachment 8 ©2012 Kaplan, Inc.

8Real Estate Taxes and Liens Other liens on real property –Commercial real estate broker lien –Domestic support lien –Estate and inheritance tax liens –Internal Revenue Service (IRS) –Liens for municipal utilities –Bail bond lien –Corporate franchise lien –IRS tax lien –Bail bond lien 9 ©2012 Kaplan, Inc.