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Define Special Assessment Lien in Real Estate
Special Assessment Lien:
A special assessment lien is a type of lien placed on a property to secure payment of a tax levy for a specific public improvement, like a new road or sewer. Only properties that benefit from the improvement are taxed and liened.
Example:
Let's say a city decides to build a new park and pays for it with funds raised by a special tax levy. The city can then place a special assessment lien on properties near the park, which are expected to benefit from the new park. The lien ensures that the property owners contribute to the cost of the park and that the city can recoup its investment.
"A Deep Dive for Real Estate Agents and Appraisers"
Here are a few more points that may be helpful to know. It's important to note that a special assessment lien is a specific type of lien and is different from other types of liens, such as mortgage liens or judgment liens. A special assessment lien takes priority over some other liens, but not all. It's important to check local laws and regulations to understand how special assessment liens are treated in your area.
Additionally, property owners may be able to challenge the assessment if they believe that the assessment is unfair or incorrect. This can involve filing an appeal or seeking legal advice to challenge the assessment.
Finally, it's important to understand that special assessment liens can impact the marketability of a property and affect the ability to sell or transfer the property. So it's crucial to investigate any existing liens on a property before purchasing or selling it.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
A special assessment lien is quite a sight,
It's a type of lien that secures a tax right.
The tax is for a public improvement, you see,
Like a new road or sewer, or even a tree.
But only the properties that benefit will pay,
And a lien is placed to ensure they won't sway.
So if a city builds a park for fun,
And only certain properties are in the sun,
A special assessment lien can be put in place,
To make sure the cost is shared, a fair race.