Chapter 1

Question 1

Ad valorem

Answer 1

a concept for property taxes that means “according to value”

Question 2

Allodial System

Answer 2

a concept of land ownership that allows private individuals to own property

Question 3

Annexation

Answer 3

attaching personal property to land so that the law views it as part of the real property

Question 4

Arrears

Answer 4

owing payment on things for which one had yhr udr go buy had not yet paid for, such as property taxes that are paid in arrears, or the state be being in arrears with a debt obligation (accrued expenses)

Question 5

Assessed Value

Answer 5

for property tax purposes, a percentage of the market value. In Arizona, the percentage for residential property is 10%, raw land is 15%, and commercial property is 18%

Question 6

Attachment

Answer 6

court-ordered seizure of a defendant’s property to satisfy a judgement. In the case of real property, attachment creates a lien.

Question 7

Bill of Sale

Answer 7

an instrument in writing that transfers ownership of tangible personal property (ie. furniture)

Question 8

Chattel

Answer 8

personal property

Question 9

Community Facilities District (CFD)

Answer 9

a special purpose public improvement district in Arizona that has the ability to levy long-term bonds to finance and provide public infrastructure, such as water, sewer, schools, and streets

Question 10

Condemnation

Answer 10

1. the act or process of taking private property for public use, through the government power of eminent domain, also called appropriation, 2. a declaration that a structure is unfit for occupancy and must be closed or abolished

Question 11

Law of Descent

Answer 11

a system whereby title to property passes by operation of law to the heirs of one who dies owning property without a will

Question 12

Emblements

Answer 12

farm crops that require annual cultivation, which may be removed by a tenant farmer if the owner sells land; considered to be personal property, and so emblements are transferred through a bill of sale (also called fructose industriales)

Question 13

Eminent Domain

Answer 13

the power or right of government bodies to take private real estate for public use upon payment of just and equitable compensation to the owner. The legal process of taking the property is called Condemnation or Appropriation

Question 14

Escheat

Answer 14

the reversion of property to the state after a person dies without leaving a valid will or any heirs

Question 15

Feudal System

Answer 15

a legal system under which real property is owned by a lord, king, or other sovereign

Question 16

Full Cash Value

Answer 16

In Arizona, the value of land and improvements as the basis for determining the taxable value of a property tax assessment; synonymous with market value

Question 17

Grandfathered

Answer 17

a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases

Question 18

Intestate

Answer 18

a person who dies without making a will, causing his or her estate to pass on by the laws of descent and distribution

Question 19

Limited Property Value

Answer 19

In Arizona, the number used to compute primary taxes for the maintenance and operation of school districts, cities, community college districts, and counties; cannot exceed the property’s full cash value

Question 20

Non-homogeneity

Answer 20

a characteristic of real property; each piece of land, each building, and each house is a different piece of real estate; also called uniqueness

Question 21

Police Power

Answer 21

the right of the government to pass legislation protecting the safety, health, and welfare of the public

Question 22

Real Property

Answer 22

the physical land itself to the center of the earth and the sky above, and anything permanently affixed to the land, such as buildings, improvements, growing plants, and fixtures, as well as the associated rights, such as water rights of easements, also called realty

Question 23

Setback

Answer 23

a term used in local zoning ordinances that represents the distance between a lot’s boundary lines and improvements

Question 24

Severance

Answer 24

a process through which fixtures are detached from the land and revert back to personal property

Question 25

Situs

Answer 25

the location of a parcel of real property

Question 26

Special Assessment

Answer 26

a tax levied only against properties that benefit from a public improvement (ie. a sewer or street light) to cover the cost of the improvement; creates an involuntary lien

Question 27

Trade Fixture

Answer 27

an item of personal property that is annexed to leased property and is necessary to a trade or business. Trade fixtures are removable by the tenant prior to expiration of the lease

Question 28

Variance

Answer 28

a permit obtained from the local zoning authority allowing the holder to use property or build a structure in a way that legally violates the zoning ordinance