Property tax
Ad valorem tax
A tax levied according to value
Latin for "according to value", and the basis of general real estate taxes: the more a property is assessed at, the more tax it bears. The resulting lien takes priority over essentially all private liens regardless of when they were recorded.
How the exam asks about it
That priority rule is the connection between the tax vocabulary and the lien vocabulary, and items cross between them.
Related terms
Sitting the license exam? Find out what you actually know.
Free practice questions built to the published national content outline, with an explanation after every answer. No account, no paywall.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.