AZ4 Involuntary Liens & Homestead Exemptions

Question 1

Real Estate Taxes

Answer 1

Have #1 priority over all liens.

Question 2

Ad Valorem

Answer 2

According to value.

Question 3

Affidavit of Value

Answer 3

1. Must accompany a deed in order to be recorded.
2. Is signed by both parties
3. States the sales price.
4. Must have property description.
5. Used to inform the county assessor of the sales price.
6. Used in Arizona instead of transfer tax stamps.

Question 4

Full Cash Value

Answer 4

Determined by using standard appraisal techniques at the beginning of each calendar year for the next tax year. Once established, the property owner is notified by mail of the FCV and Assessed Value.

Question 5

Limited Property Value

Answer 5

All real property taxes are calculated based on the LPV.

Question 6

Assessed Value Ratio

Answer 6

The ratio used to calculate the Assessed Value of the property. These ratios are governed by statute and determined according to the current use of the property based on their property class. 
10%: Owner Occupied Residential Property
10%: Residential Income Property
15%: Vacant Land
18%: Commercial Property

Question 7

Treasurers Sale

Answer 7

The treasurer sells tax liens at auction and issues a “Certificate of Purchase” to the bidder.

Question 8

Certificate of Purchase

Answer 8

Issued to the high bidder of a tax lien; sold by the Treasurer.

Question 9

Affidavit of Affixture

Answer 9

A document that is used to change the status of a manufactured home from personal property to real property.
Mobile/Manufactured Homes in Arizona
1. Are personal property if not legally affixed by surrendering the title and recording an “Affidavit of Affixture”.
2. Are real property and taxed as real property if legally affixed.

Question 10

Assessment (Special Assessments)

Answer 10

Lien against property for public improvements (Paving, sewers, sidewalks)

1. Have a number 2 priority over all liens
2. Normally levied on a front foot basis.

Question 11

Mechanics Lien

Answer 11

Lien for labor or material supplied to a property.

Question 12

Judgement

Answer 12

A. In Arizona, a judgements priority is established when recorded.
B. To remain in effect, it must be renewed every five years
C. Unless there is a court stipulation to the contrary, a judgment in Arizona will bear interest at the legal rate of interest.
D. Judgements could be revealed from:
a. Title report
b. County Recorders records
c. Credit report.

Question 13

Homestead Exemption

Answer 13

In Arizona, a homestead exemption exempts a portion of a homeowner’s equity from attachment and execution of a forced sale due to nonpayment of a judgment.
A. No protection against a forced sale due to foreclosure of a mortgage, trust deed, land contract, property taxes, assessments or mechanics lien.
B. Maximum exemption for a home, condominium or mobile home is $150,000
C. By law all primary residences in Arizona have a Homestead Exemption. It is not necessary to record a homestead exemption.