Opinion ID: 1849888
Heading Depth: 1
Heading Rank: 2

Heading: Obligations Secured by Lien

Text: If Weinberg does not require the taxation of these agreements as unclassified intangible personal property, then we must decide whether, as obligations for the payment of money, they are taxable based upon the absence or presence of an other lien. The authorities offered by the majority for finding the one-time two mill tax applicable, which necessitates a finding that the agreements create a lien, are, in my view, completely distinguishable. Gulf American Land held that an agreement for deed is a binding legal obligation, but it did not pass upon the absence or presence of a lien for any purpose. In the Nelson , Jasper and H. & L. Land Co . cases cited by the majority, a buyer was entitled to possession while making installment payments. Equitable conversion was present to create a true vendor's lien by which the seller could recover the property from the buyer. That is not the situation now before us. Possession of relator's lands has never been relinquished, [10] and no artificial legal mechanism (lien) is required to assure its recovery. The last case cited by the majority, Collier Land, merely quoted from Jasper for the purpose of discussing liens. In that case there was no indication whether possession was given to Collier's customers, and there was no comment on the fact that possessory rights were conferred in Jasper . Absent any guidance in the cited decisions as to presence or absence of a lien where possession is not relinquished, it is necessary to define the term lien and apply the definition to the facts before us. A lien is defined variously for various purposes, [11] but in real property transactions the term invariably means a creditor's charge or claim on property possessed by another. [12] In the agreements we have under review, relator retains possession until full payment is made. A buyer does not physically acquire the subject property, and it is problematic whether he even holds an enforceable right to acquire it. [13] At most, a buyer acquires something akin to a forfeitable option. I conclude, therefore, that while relator has legal remedies and rights arising from a binding legal obligation, its own possession of the property, its retention of legal title, and the features of its contract relative to personal liability, assignability and the buyer's right of enforcement, all combine to preclude the creation of a lien. [14] There being no lien the obligation is taxable at annual one mill rate under Section 199.032(1), Florida Statutes.