Chapter 1 Flashcards
Property Rights: Private and Governmental
ad valorem
a concept for property taxes that means “according to value”
allodial system
land ownership that allows private individuals to own property
annexation
attaching personal property to land so that the law views it as part of the real property
arrears
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
assessed value
for prop. tax purpose, a % of the market value.
attachment
court-ordered seizure of a defendant’s property to satisfy a judgement. In case of real property, attachment creates a lien.
bill of sale
an instrument in writing that transfers ownership of tangible personal property (ie furnitures)
buffer zone
a tract of land between two differently zoned areas
chattel
personal property
community facilities district (CFD)
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
condemnation`
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
Law of Descent
a system whereby title to property passes by operation of law to the heirs of one who dies owning property without a will
Emblements
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.
Eminent Domain
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
Escheat
the reversion of property to the state after a person dies without leaving a valid will or any heirs
Feudal System
a legal system under which real property is owned by a lord, king, or other sovereign
Full Cash Value
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
Grandfathered
A provision in which an old rule continues to apply to some exisiting situations while a new rule will apply to all future cases.
Intestate
a person who dies w/out making a will, causing his or her estate to pass on by the laws of descent and distribution
Limited Property Value
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.
non-homogeneity
A characteristic of real property; each piece of land, each building, and each house is a different piece of real estate AKA UNIQUENESS
police power
the right of the gov. to pass legislation protecting the safety, health, and welfare of the public
real property
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
setback
a term used in local zoning ordinances that represents the distance btween a lot’s boundary lines and improvements
severance
a process through which fixtures are detached from the land and revert back to personal property
situs
the location of parcel of real property
special assessment
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
trade fixture
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
variance
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.
what is the difference between real and personal property.
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)
describe the physical characteristics of land
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
describe the economic characteristics of land
in legal description, only the surface is detailed; tsubsurface and air rights are included
recall the difference between land, real property, and real estate
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.
recognize the difference between fixtures and trade fixtures
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
name the 4 gov. rights in real property under the allodial system of individual ownership (PETE)
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.
explain the concept of eminent domain.
right of gov. to take personal prop for public use
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
authority to regulate or limit land use and to confiscate prop temp. under emergency situations
discuss the gov. right to tax real estate and personal property to raise funds to operate the gov.
taxation
explain the method of arriving at the annual prop. tax due for residential prop, vacant land, and commercial property.
commercial prop 18%
vacant (raw) land 15%
rented residential prop 10%
residential prop 10%
identify and describe how tax rates should be obtained
tax bill
_______
assessed value |
percentage
define the states power to escheat.
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
what test do we use to determine what is or is not a fixture
MARIA
method of attachment agreement relationship intent adaptability
name the delinquent dates for property taxes
Oh No Mo Money
first half
due oct 1
delinquent nov 1
second half
due march 1
delinquent may 1
how are property taxes paid out?
levied annually but paid semi-annually
what happens if there is an unpaid property tax and there is a lien against the property
collected on the first monday in january
