Chapter 14. Flashcards
Ad Valorem Taxes
According to valuation.
Appropriation
A sum of money or total assets devoted to a special purpose.
Assessed Value
A valuation placed upon property by a public officer or a board, as a basis for taxation
Assessing Unit
A city, county, town or village with the authority to value real property for purposes of taxation.
Approved Assessing Unit
A city or town which has been certified by the State Board of Real Property Tax Services to have completed a revaluation or an update in conformance with its rules and regulations.
Assessments
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer.
Assessment Review Board
An independent tribunal established to hear assessment appeals.
Homestead
The home which is owned by and is the usual residence of the client along with all the surrounding land and any building on that land, provided the land is not separated from the home by an property owned by others.
Non-homestead
Real property that does not meet the definition of homestead. Non-homestead real property is generally counted as an asset; however, it is considered unavailable during the time the client make a reasonable effort to sell the property.
In Rem
A proceeding against the reality directly; as distinguished from a proceeding against a person. (Used in taking land from nonpayment of taxes, etc.)
Levy -
An assessment of tax.
Lien
A legal right or claim upon a specific property which attaches to the property until a debt is satisfied
Special Assessment
An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.
Special Assessment Districts
A geographic area in which the market value of real estate is enhanced due to the influence of a public improvement and in which as tax is apportioned to recover the costs of the public improvement.
- What type of property is generally exempt from paying real estate taxes…?
Schools
What type of value is generally greater than the assessed value…?
Market Value
What is the formula for equalization rate…?
Total Assessed Value of Municipality / Total Market Value of Municipality
What is the formula for determining the market value of a property…?
Assessment / Equalization Rate
The assessed value divided by the equalization rate is equal to what…?
The Market Value
What real world scenario may cause an assessor to provide an approximate assessment…?
The assessor does not have access to the inside of the property
If an assessor is going to change an assessment, generally speaking, what must the assessor do…?
Conduct a total assessment change for the entire assessing district
Assessing a recently sold property based on the new purchase price is known as what…?
Welcome Neighbor Policy
A tax bill is delivered by whom…?
Receiver of Taxes
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
The Receiver of Taxes issues what…?
Tax Bill
People who protest taxes on another’s behalf must have what…?
A License
What is the main reason an owner may want to protest the assessment on his/her property…?
The assessed value is too high
What is one reason a property owner may protest the assessment of their property…?
The property was unequally assessed
One can protest taxes based on what type of error…?
Factual Error
What is a primary responsibility of an agent with regards to tax rates and assessments…?
Obtain accurate information
What property type uses SCAR when protesting real estate taxes and assessments…?
Residential
A SCAR proceeding is generally led by who…?
Appointee
A property is valued at $515,000. What is the assessed value with an equalization rate of 10%…?
51500
Your property has been assessed for $10,200; however, a comparable property on your block was assessed at $7,500. How much has your property been over assessed…?
2700
Joe has an upcoming SCAR proceeding to challenge the assessment made on his house. He wants to be well prepared in order to give himself the best opportunity to have his assessment lowered. What is one document you would recommend Joe bring to the SCAR proceeding…?
Recently completed appraisal
What is a major factor that is always taken into consideration when doing an appraisal on a commercial property…?
Reserve Replacement
The total market value of a municipality is $89,000,000 and the total assessed value of a municipality is $19,580,000. What is the equalization rate for the municipality…?
22 (Percent %)
The total market value of a municipality is $48,000,000 while the total assessed value is $8,640,000. What is the equalization rate for the municipality…?
18 (Percent %)
A home that is generally unavailable during the time the client makes a reasonable effort to sell the property is known as what…?
Non-homestead
A proceeding against the reality directly, as distinguished from a proceeding against a person, is known as what…?
In Rem
This agreement describes the terms under which the cooperative gives permission to a shareholder before making any changes or improvements to the unit the shareholder occupies…?
Alteration Agreement
A series of documents submitted for the review by a cooperative board is also known as what…?
Board Package
This document includes a written record of what occurs at a cooperative board meeting…?
Board Minutes
Which of the following is transferred to the buyer of condominium apartment at closing…?
Deed
A condominium apartment is classified as what type of property…?
Real property
Unlike in a cooperative, a condominium owner does NOT have to go through what, when selling their unit…?
Board approval
A Cooperative Policy State #1 outlines the rules and regulations with regards to what…?
Developers using brokers to test the market
A fundamental document that establishes the existence of and further governs the use and maintenance of a condominium property is known as…?
Declaration
A declaration is also known as what…?
Master deed
A term used for buying a home and then turning around and reselling it for a profit is known as…?
Flipping
The agreement between the cooperative building and the bank lending money for the purchase of shares of stock in the cooperative is known as…?
Recognition Agreement
A loan in which shares of stock are used as collateral is known as what…?
Share Loan
The developer or owner organizing and offering for sale a condominium or cooperative development is also referred to as a…?
Sponsor
What does a cooperative owner receive at the closing…?
Proprietary Lease
Which of the following are referred to as the spaces in a building shared by residents of the building…?
Common Elements
Mark owns a 950 sq.ft. cooperative apartment. The size of Mark’s apartment is roughly 1/50th of the entire cooperative building. If the cooperative has 2,500,000 shares of stock to distribute among its shareholders, what is a reasonable amount of shares Mark would receive…?
50,000 shares
All cooperative shareholders must pay which of the following each month…?
Maintenance fee
Which of the following is an example of a cost that is covered by cooperative owner’s monthly maintenance fee…?
Operating costs
Taxes owed by a corporation that owns a cooperative building are paid by which of the following…?
The shareholder’s monthly maintenance fees
The annual budget of a cooperative building is paid for by its shareholders. The amount each shareholder contributes is based on which of the following…?
The percentage of ownership of each shareholder
A cooperative apartment is considered what type of property…?
Personal property
A cooperative apartment is considered what type of property…?
Chattel
Which of the following is considered chattel…?
Cooperative apartment
What is filed to give notice that a loan was given on a cooperative apartment…?
UCC-1
When is a UCC-1 filed to give notice of a loan as opposed to a mortgage…?
A loan is given to the owner of a cooperative apartment
Which of the following may be considered a major concern for a bank seeking to lend money on a cooperative apartment…?
The cooperative has a high number of vacancies
Which of the following may be viewed unfavorably by a bank seeking to lend money on a cooperative apartment…?
A large number of unsold sponsor units
Banks will typically NOT lend on cooperatives in which how many shares remain unsold…?
Greater than 50 (Percent %)
A residential establishment that includes both a condominium and cooperative ownership structures is known as a/an…?
Condop
When purchasing a cooperative apartment, this document is provided, which contains key information required to be disclosed to the purchaser…?
Offering Plan
The process by which a rental building becomes a condominium building is known as this…?
Conversion
Who is responsible for approving the offering plan of a condominium or cooperative conversion…?
NYS Attorney General
In a condop, this is typically treated as a single unit owned by the cooperative structure…?
Condominium
David owns a cooperative apartment in Midtown Manhattan. He would like to know when the board members of his cooperative meet, as he would like to present architectural plans for the renovation of his apartment. Where should David look to find this information…?
Ba-laws
John has a faulty HVAC damper in his cooperative apartment. Where should John look to determine if he, or the cooperative, is responsible for fixing the damper…?
John’s Proprietary Lease
John would like to build an additional bathroom in his cooperative apartment. Where should John look to verify if a second bathroom is allowed by the cooperative…?
Cooperative House Rules
What municipal services are NOT funded with real estate taxes…?
Appraiser
iod during which taxpayers may protest the assessed value placed on tWhat is the formula for determining the tax rate for a particular district…?
Number of Parcels / Municipal Budget
The period during which taxpayers may protest the assessed value placed on their property is known as what…?
Grievance Period
What is an example of a factual error that may be made by an assessor and serve as a valid protest…?
Building square footage
SCAR is an acronym for what….?
Small Claims Assessment Review
A SCAR proceeding is generally held where…?
Supreme Court Building
How can you successfully have your property reassessed through a SCAR proceeding…?
Prove that your property is over assessed by showing the assessed value of comparable properties in your neighborhood
Why might an appraiser take reserve replacements into account when assessing a commercial property…?
The value of the property may drop significantly one year due to a major repair expense
An assessor explains to you that the market value of your property was converted to the assessed value using what’s called an assessment ratio. The assessment ratio can also be considered what…?
Equalization Rate
An assessment of tax is known as what…?
Levy
Chris wants to file a protest against a tax assessment conducted on his property from two years ago. What should Chris do first…?
It is too late to file the protest
An assessor explains to you that the market value of your property was converted to the assessed value using what’s called an assessment ratio. The assessment ratio can also be considered what…?
Equalization Rate
What is the formula to determine how much a property is over assessed…?
Actual Assessment - Appraised Assessment
A SCAR proceeding typically results in what…?
A written decision by the appointee
A conversion factor used to convert market value into assessed value is also known as what…?
Equalization Rate
Your answer is correct
What real world scenario may cause an assessor to provide an approximate assessment…?
The assessor does not have access to the inside of the property
If an assessor is going to change an assessment, generally speaking, what must the assessor do…?
Conduct a total assessment change for the entire assessing district
A tax bill is delivered by whom…?
Receiver of Taxes
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
Based on the review of an assessment that has been protested by an owner, an appraisal review committee may offer what…?
Partial reduction of assessment
A SCAR proceeding is generally held where…?
Supreme Court Building
The mass appraisal technique is utilized when which of the following occurs…?
An entire community is being reassessed
What is an example of a special assessment…?
Library
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
One can protest taxes based on what type of error…?
Factual Error
Your property has been assessed for $5,200; however, a comparable property on your block was assessed at $4,000. What can you do in this situation…?
Challenge the assessment since your property is over assessed
Joe has an upcoming SCAR proceeding to challenge the assessment made on his house. He wants to be well prepared in order to give himself the best opportunity to have his assessment lowered. What is one document you would recommend Joe bring to the SCAR proceeding…?
Recently completed appraisal
A home that is generally unavailable during the time the client makes a reasonable effort to sell the property is known as what…?
Non-homestead
