Chapter 1

Question 1

ad valorem

Answer 1

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

Question 2

allodial system

Answer 2

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 pay on things for which one has the use of but has not yet paid for. ie prop. taxes that are paid in arrears, or the state be being in arrears with a debt obligation

Question 5

assessed value

Answer 5

for prop. tax purpose, a % of the market value.

Question 6

attachment

Answer 6

court-ordered seizure of a defendant’s property to satisfy a judgement. In 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 furnitures)

Question 8

buffer zone

Answer 8

a tract of land between two differently zoned areas

Question 9

chattel

Answer 9

personal property

Question 10

community facilities district (CFD)

Answer 10

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

Question 11

condemnation`

Answer 11

the act or process of taking private property for public use through the gov. power of eminent domain. aka APPROPRIATION: declaration that a structure is unfit for occupancy and must be closed or demolished

Question 12

Law of Descent

Answer 12

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

Question 13

Emblements

Answer 13

farm crops that require annual cultivation, which may be removed by a tenant farmer if the owner sells land; considered to be personal prop. and so emblements are transferred through bill of sale AKA FRUCTUS INDUSTRIALES.

Question 14

Eminent Domain

Answer 14

the pwr or right of gov. 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 CONDEMNATION or APPROPRIATION

Question 15

Escheat

Answer 15

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

Question 16

Feudal System

Answer 16

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

Question 17

Full Cash Value

Answer 17

in AZ, the value of land and improvements as the basis for determining the taxable value of a prop. tax assessment; synonymous with market value

Question 18

Grandfathered

Answer 18

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

Question 19

Intestate

Answer 19

a person who dies w/out making a will, causing his or her estate to pass on by the laws of descent and distribution

Question 20

Limited Property Value

Answer 20

In AZ, the umber 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 21

non-homogeneity

Answer 21

A characteristic of real property; each piece of land, each building, and each house is a different piece of real estate AKA UNIQUENESS

Question 22

police power

Answer 22

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

Question 23

real property

Answer 23

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 or easements AKA REALTY

Question 24

setback

Answer 24

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

Question 25

severance

Answer 25

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

Question 26

situs

Answer 26

the location of parcel of real property

Question 27

special assessment

Answer 27

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 28

trade fixture

Answer 28

an item of personal property that is annexed to leased prop. and is necessary to a trade or business. are removable by the tenant propr to exp. of the lease

Question 29

variance

Answer 29

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

Question 30

what is the difference between real and personal property.

Answer 30

real prop (aka realty) is land and everything intended to remain with it. personal property is any prop. that is movable and not intended to remain with the land (aka chattel or personalty, includes tangible (bed, chair, tables) and intangible (copyrights, patents, trademarks)

Question 31

describe the physical characteristics of land

Answer 31

considered to include the surface of the earth, the subsurface to the center of the earth and the atmosphere above the land within reasonable limits to permit commercial air travel

Question 32

describe the economic characteristics of land

Answer 32

in legal description, only the surface is detailed; tsubsurface and air rights are included

Question 33

recall the difference between land, real property, and real estate

Answer 33

land is the subsurface and air rights. real estate includes the actual physical land as well as all of the attachments. real property refers to the land, the attachments (real estate), plus the legal interests, rights, privileges, associated with ownersship such as the bundle of rights.

Question 34

recognize the difference between fixtures and trade fixtures

Answer 34

a fixture is a man made attachment. an item of personal property that may or may not be attached to real property. trade fixtures also called business fixtures are considered personal property used in the operation of business

Question 35

name the 4 gov. rights in real property under the allodial system of individual ownership (PETE)

Answer 35

PETE

police power - constitutional power to protect general welfare

eminent domain - the right for gov.

taxation - right to tax private prop.

escheat - the right to take back prop.

Question 36

explain the concept of eminent domain.

Answer 36

right of gov. to take personal prop for public use

Question 37

explain that police power is the inherent power of the state to pass to municipalities and counties the power and authority to protect the public interest and welfare of its people

Answer 37

authority to regulate or limit land use and to confiscate prop temp. under emergency situations

Question 38

discuss the gov. right to tax real estate and personal property to raise funds to operate the gov.

Answer 38

taxation

Question 39

explain the method of arriving at the annual prop. tax due for residential prop, vacant land, and commercial property.

Answer 39

commercial prop 18%
vacant (raw) land 15%
rented residential prop 10%
residential prop 10%

Question 40

identify and describe how tax rates should be obtained

Answer 40

tax bill
_______

assessed value |

percentage

Question 41

define the states power to escheat.

Answer 41

a term that means to “fall back”.

when a person dies intestate (without a will) and has no heirs or creditors, title to prop reverts to the state

Question 42

what test do we use to determine what is or is not a fixture

Answer 42

MARIA

method of attachment 
agreement 
relationship
intent
adaptability

Question 43

name the delinquent dates for property taxes

Answer 43

Oh No Mo Money

first half
due oct 1
delinquent nov 1

second half
due march 1
delinquent may 1

Question 44

how are property taxes paid out?

Answer 44

levied annually but paid semi-annually

Question 45

what happens if there is an unpaid property tax and there is a lien against the property

Answer 45

collected on the first monday in january