FRECI_9-7 - Lecture Preview Florida Real Estate Commission...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Lecture Preview Florida Real Estate Commission Course I • What will you learn from this lecture? Pre-Licensing Course for Sales Associates – Continue discussion on private restrictions on real property – Liens as an encumbrance on title – Various types and categories of liens – Priority of liens Session 9 – Lecture 7 Title, Deeds, and Ownership Restrictions Copyright, 2004 2 Private Restrictions Vocabulary Terms (4 of 4) Liens • Liens A security interest in another’s property for payment of a debt Copyright, 2004 3 Copyright, 2004 All Liens Are Encumbrances 4 Parties to a Lien Restrictive Deed covenants restrictions Lienor • • • • Encroachments Liens Easements …but not all encumbrances are liens! 5 Lender Taxing authority Contractor Anyone with a security interest in another’s property Copyright, 2004 Lienee • Person against whom the lien is placed 6 1 Voluntary vs. Involuntary Liens Different Kinds of Liens Voluntary Liens Involuntary Liens Involuntary Liens Per contractual agreement Voluntary Liens No contractual agreement Specific Liens • Mortgages • Auto loans • Home equity line General Liens Copyright, 2004 7 Voluntary Lien Example • Local taxes • State taxes • Federal taxes Copyright, 2004 8 Involuntary Lien Example Lienor Lienee Copyright, 2004 Property tax bill Due Vendee to vendor 9 Specific vs. General Liens Specific Liens Copyright, 2004 Copyright, 2004 10 Specific Liens General Liens • Mortgages • Property taxes • Special tax assessments (road paving) • Special assessments by homeowner associations (new roof on condo) • Mechanic’s liens 11 May be voluntary or involuntary 12 2 Mechanic’s Liens General Liens • Federal income taxes • Federal estate taxes • Judicial liens (judgments) You owe Uncle Sam 50 large! Covers improvements to real property Contractor’s lien Material’s lien Roofing Swimming pool Painting Landscaping Generally considered involuntary! Copyright, 2004 Prevents “unjust enrichment” 13 Copyright, 2004 14 Vendor’s Liens Lien Priority Seller’s security interest “First in time, first in line” Created by: Liens are prioritized by the date recorded Purchase money mortgage Owner take-back Seller Grantor Vendor Some liens are “Superior” Buyer Grantee Vendee Copyright, 2004 15 • Property taxes • Special tax assessments Mortgage A. B. C. D. Property Tax & Assessment Liens Vendor’s Lien Construction (Mechanic’s) Lien 1st mortgage recorded on 1/5/99 Judgment dated 6/10/01 Mechanic’s lien recorded last week Last year’s property tax bill Federal Tax Lien General Liens “First in time, first in line” Copyright, 2004 16 What is the order of superiority? Liens and Their Priority Specific Liens These are effective as of the date imposed! Judgment Lien State Intangibles Tax Lien 17 Copyright, 2004 1st in line: 2nd in line: 3rd in line: Last in line: D (Superior lien) A (recorded first) B C (recorded last) 18 3 End of Lecture At the conclusion of this lecture, complete Quiz 9-7 in the course. Copyright, 2004 19 4 ...
View Full Document

This note was uploaded on 05/21/2011 for the course FREC 1000 taught by Professor Stallone during the Spring '08 term at University of Florida.

Ask a homework question - tutors are online