Ch. 8 Encumbrances Flashcards
A right of way across an adjoining property for purposes of ingress and egress is considered a/an:
a. Party easement
b. Easement appurtenant
c. License
d. Easement in gross
b. Easement appurtenant
Correct! If the easement is for ingress and egress it is most likely a driveway and is an appurtenant easement. If it is the only access to the property it would be an appurtenant easement that is an easement in necessity.
A tract of land benefited by an easement is called a/an:
a. Estate om gross
b. Appurtenant estate
c. Servient estate
d. Dominant estate
d. Dominant estate
Correct! The landowner who benefits from the easement is the dominant tenement.
A deed restriction does not permit the building of a fence. The buyer erects a fence for his dog. The neighbors would enforce the deed restriction by:
a. A civil court action
b. Eminent domain
c. Filing a zoning variation
d. Informing the building code supervisor
a. A civil court action
Correct! Enforcement of deed restrictions is accomplished through court action.
An easement created through continued use of a property is called
a. Squatter’s rights
b. Adverse possession
c. Corporeal easement
d. A prescriptive easement
d. A prescriptive easement
Correct! A prescriptive easement is established by continuous, open, hostile and notorious use for a period of ten years without the consent of the owner.
An easement is NOT terminated by:
a. Non-use of a prescriptive easement for 5 years.
b. Merger
c. A quitclaim deed from the holder of the dominant tenement to the holder of the servient tenement
d. A sale where the deed does not reference the easement
d. A sale where the deed does not reference the easement
Correct! A deed transfer ownership of the property subject to any encumbrance including an easement even if the deed does not specifically name the easement.
An easement created through continued use of a property is called Select one: a. A prescriptive easement b. Squatter's rights c. Corporeal easement d. Adverse possession
a. A prescriptive easement
Correct! A prescriptive easement is established by continuous, open, hostile and notorious use for a period of ten years without the consent of the owner.
Rank the following liens in the order of their priority from highest to lowest: IRS lien, Property Taxes, Special Assessments.
a. Property Taxes, IRS Lien, Special Assessments
b. IRS Lien, Property Taxes, Special Assessments
c. IRS Lien, Special Assessments, Property Taxes,
d. Property Taxes, Special Assessments, IRS Lien
d. Property Taxes, Special Assessments, IRS Lien
Correct! Property Taxes are always the highest priority, followed by Special Assessments.
All of the following are specific liens, EXCEPT:
a. Internal revenue taxes
b. Mechanic’s liens
c. Trust deed as collateral for a loan
d. Property taxes
a. Internal revenue taxes
Correct! Specific liens are those that affect only one specific property. Internal Revenue Tax liens affect all of the real and personal property of the individual that owes the income tax.
A property tax lien is what type of lien?
a. Inchoate
b. Specific
c. Incorporeal
d. General
b. Specific
Correct! One of the government powers is the right to tax real property. This tax is a lien on a specific property, which takes precedence over all other liens and encumbrances.
An owner-occupied residential property has a Limited Value of $345,000 and is assessed for tax purposes at the prescribed rate, and the tax rate is $9.50 per $100 of assessed value. The tax on the property would be:
a. $1,638.75
b. $3,277.50
c. $32,775.00
d. $6,555.00
b. $3,277.50
Correct! First compute the assessed value by multiplying $345,000 time 10%, which is the statutory rate in Arizona for an owner occupied residence. The resulting answer of $34,500 is divided by 100 by moving the decimal two places to the left. The resulting answer of $345 is multiplied by $9.50 resulting in the amount of the tax of $3,277.50.
The successful bidder at the sale of a property tax lien, pay the taxes due and receives a:
a. Treasurer’s Deed
b. Certificate of Sale
c. Sheriff’s Deed.
d. Certificate of Purchase
d. Certificate of Purchase
Correct! A t the Treasurer’s sale, the purchaser of the tax lien receives a Certificate of Purchase. The successful bidder has to pay the back taxes and interest, and will have to pay taxes during the owner’s right of redemption period.
After the Treasurer’s sale, the owner of the property has a Right of Redemption period of:
a. One year
b. Six months
c. Three years
d. 90 days
c. Three years
Correct! The right of redemption period is three years.
If real property in your area is assessed at 15% of appraised value and is taxed at $9.75 per $100 of assessed value, the tax on a $244,000 property would be:
a. $7,137.00
b. $3,568.50
c. $356.85
d. $23,790.00
b. $3,568.50
Correct! First, compute the assessed value by multiplying $244,000 times 15%. The resulting answer of $36,600 is divided by 100 by moving the decimal two places to the left. The resulting answer of #366 is multiplied by $9.75 resulting in the amount of the tax $3,568.50.
Arizona property taxes are based on:
a. Transfer value
b. Assessed value
c. The number of rooms
d. Front footage
b. Assessed value Correct! This property tax is called an “ad valorem tax”, which means “according to value” in Latin. Each piece of property is taxed according to its assessed value.
The current tax payments become delinquent on:
a. December 1 and May 1
b. July 1 and January 1
c. April 1 and November 1
d. November 1 and May 1
d. November 1 and May 1
Correct! A saying to help you remember the due and delinquent dates for the semi-annual property tax payments is Oh No More Money. The first letter of each word stands for the month payments are due or delinquent. The first payment is due October 1 and delinquent on November 1. The second installment is due on March 1 and delinquent on May 1 of the following year.
