Michigan Real Estate - Unit 13. Real Estate Taxes and Other Liens - Multiple Choice Questions with Accurate Answers
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Michigan mechanic
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Michigan Mechanic
Michigan Real Estate - Unit 13. Real Estate Taxes and Other Liens - Multiple Choice Questions with Accurate Answers
"Ad valorem taxes are based on the value of the property taxes and create liens that are
A) general, voluntary, and equitable.
B) specific, voluntary, and equitable.
C) statutor...
Michigan Real Estate - Unit 13. Real
Estate Taxes and Other Liens - Multiple
Choice Questions with Accurate
Answers
"Ad valorem taxes are based on the value of the property taxes and create liens that are
A) general, voluntary, and equitable.
B) specific, voluntary, and equitable.
C) statutory, involuntary, and general.
D) specific, involuntary, and statutory - answer"D-Explanation:
The answer is specific, involuntary, and statutory. The lien is placed on the specific
property taxes, occurs without the consent of the property owner, and is created by
state law
"
"The current market value of a property is $35,000. For tax purposes, it is assessed at
40% of market value. The tax rate is $4 per $100 of assessed value. What is the
amount of the tax due?
A) $705
B) $740
C) $560
D) $625 - answer"C-Explanation:
The answer is $560. $35,000 (market value) × 40% (0.40) = $14,000 (assessed value)
$14,000 ÷ 100 = 140 and 140 × $4 tax rate = $560 tax due
"
"A lien on real estate made to secure payment for a specific municipal improvement
project is which of the following?
A) Utility lien
B) Ad valorem
C) Mechanic's lien
D) Special assessment lien - answer"D-Explanation:
The answer is special assessment lien. Specific improvements are paid for by special
assessments
"
, "A lien against a parcel of real estate may result from a lawsuit currently before the
court. Notice of a possible future judgment could be found by examining the public
records for
A) a judgment lien.
B) the chain of title.
C) a lis pendens.
D) a suit to quiet title - answer"C-Explanation:
The answer is a lis pendens. A lis pendens is a notice of a possible future lien that is
filed to alert the public that there may be a claim against the property when the final
judgment in the case is rendered
"
"Priority of liens refers to which of the following?
A) Order in which liens will be paid if property is sold to satisfy a debt
B) Fact that specific liens have greater priority than general liens
C) Order in which a debtor assumes responsibility for payment of obligations
D) Dates liens are filed for record - answer"A-Explanation:
The answer is order in which liens will be paid if property is sold to satisfy a debt.
Priority of liens refers to the order in which claims against a property will be paid off. In
general, the rule for priority of liens is ""first come, first served,"" but there are some
exceptions, such as taxes and assessments
"
"What is another name for an IRS tax lien?
A) Estate tax lien
B) Attachment lien
C) Bail bond lien
D) Federal tax lien - answer"D-Explanation:
The answer is federal tax lien. This type of lien results from a person's failure to pay any
portion of federal taxes, such as income and withholding taxes
"
"All of the following probably would be exempt from real estate taxes EXCEPT
A) synagogues and churches.
B) golf courses operated by the park district.
C) apartment buildings.
D) public hospitals - answer"C-Explanation:
The answer is apartment buildings. Properties such as public hospitals and public
parks, as well as religious institutions such as synagogues and churches, are usually
exempt from real estate taxes. Apartment buildings, typically operated as investment
properties, are taxed
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