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North Carolina tree licensing exam > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

Which property is LEAST LIKELY to be exempt from property taxes?

an airport
an embassy
a doctor’s office
a park

A

The doctors

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2
Q

Jimmy owns 40 acres of land with a house and several barns. His property taxes include the property, the house, and all of the barns.

A

True

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3
Q

The role of an assessor is to determine the amount of property tax due.

A

False

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4
Q

Liz is getting ready to sell her house and has no idea what it might sell for. Before listing her house for sale with a brokerage, Liz checks the county clerk’s office and sees that a house next door, which just sold for $220,000, is assessed at $110,000. Her house is assessed at $140,000. Do you think Liz can get a rough estimate of how much she might be able to ask for her house from this information?

A

Yes

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5
Q

Mark lives in a village where the assessment rate is 40%. His house was determined to have a market value of $200,000, so the assessed value of his property is $80,000.

A

True

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6
Q

A tax rate expressed as 26 mills is equal to $26 per $100.

A

False

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7
Q

A North Carolina tax rate of $1.50 per $100 is the same as a mill rate of 15 mills per dollar.

A

True

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8
Q

A property is appraised at $150,000 and assessed for tax purposes at 100% of value. What are the annual taxes if the tax rate is $1.15 per $100?

A

1725

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9
Q

A property has an assessed value of $250,000. The county tax rate is $1.45 per $100 of assessed value. The city tax rate is $2.00 per $100 of assessed value. What is the annual real property tax bill for this property?

A

$8,625

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10
Q

A property is appraised at $240,000 and assessed for tax purposes at 75% of value. What are the annual taxes if the tax rate is 7.5 mills?

A

1350

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11
Q

The annual property tax bill is $3,780. If the tax rate is 18 mills, what is the assessed value of the property?

A

$210,000.00

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12
Q

A property with a market value of $200,000 is assessed at 50%. The annual taxes are $1,250. What is the tax rate per $100?

A

$1.25 per $100

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13
Q

A tax rate of $1.25 per $100 is the same as 125 mills.

A

False

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14
Q

You don’t pay a special assessment tax that was imposed to put in sidewalks in your neighborhood because you don’t want the liability of keeping the sidewalks free of snow and ice. Since you did not vote for the improvement, the city CANNOT put a lien on your property to cover that assessment.

A

False

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15
Q

Howard is behind on paying his mortgage, and the lender placed a lien on his property. Other liens on his property include a judgment lien and a mechanic’s lien. The county placed a property tax lien on Howard’s property just before the lender foreclosed. When his house is sold at auction, which lien will be paid first?

A

property tax lien

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16
Q

Once you have the assessed value, the amount of property taxes can then be determined by applying the assessed value to the

A

tax rate

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17
Q

All of these are examples of things that might be paid for with a special assessment tax EXCEPT

A

school operating costs.

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18
Q

A property has a market value of $360,000 and was assessed at 100%. The tax rate is 12 mills of assessed value. What is the annual tax amount?

A

$4,320

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19
Q

Which property would be LEAST LIKELY to be eligible for property tax exemption?

A

veterinary hospital

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20
Q

The value placed on land and buildings by a city, town, or county assessor for use in levying annual real estate taxes is a property’s

A

assessed value.

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21
Q

A property with a market value of $220,000 is assessed at 100%. The annual taxes are $3,124. What is the tax rate per $100?

A

$1.42 per $100

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22
Q

Belinda’s property has a market value of $100,000 and was assessed at 90%. The tax rate is $1.50 per $100 of assessed value. What would Belinda’s annual tax amount be?

A

$1,350

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23
Q

Property taxes create a(n)

A

involuntary specific lien.

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24
Q

Which real estate lien takes priority over all other liens?

A

real property tax lien

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25
Q

Ad valorem refers to a tax that is

A

based on the assessed value of property.

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26
Q

In the previous unit, you learned that certain properties are exempt from property taxes. Of these, which is LEAST LIKELY to be exempt?

A

warehouse

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27
Q

To be eligible for the Homestead Exclusion, a property owner must be at least 60 years old and live in the property as his or her permanent residence.

A

False

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28
Q

Property owners in North Carolina must pay both state and local property taxes.

A

False

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29
Q

Tax rates in North Carolina are expressed in mills, which is the equivalent to $1 for every $1,000 of assessed property value.

A

False

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30
Q

Consider a property in a state where the tax ratio is 75%. The property’s value is $180,000 and the county tax rate is 26 mills. What is the annual tax amount?

A

$3,510

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31
Q

A North Carolina county has a tax rate of $2.05 per $100. The property in question is also subject to municipal tax of $0.25 per $100 value. What is the annual tax amount if the assessed value of the property is $285,000?

A

$6,555

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32
Q

Tax rates in North Carolina are set by local jurisdictions at least once every eight years.

A

False

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33
Q

A North Carolina property has a market value of $160,000. The tax rate is $1.10 per $100 of assessed value. What is the annual tax amount?

A

$1,760

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34
Q

An ad valorem tax lien attaches to a North Carolina property as of what date?

A

January 1 

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35
Q

Ad valorem property taxes are due on September 1.

A

True

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36
Q

Residents of the Happy Acres subdivision in Anytown request a special assessment from the city for new street lights. If approved, this special assessment tax would be paid by all property owners in Anytown.

A

False

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37
Q

If a Happy Acres resident does not vote to approve the special assessment, is he still required to pay for it?

A

Yes

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38
Q

A property has four liens against it: A mortgage lien ($128,000), a special assessment lien ($2,100), an ad valorem tax lien ($7,430), and federal income tax lien ($47,500). The property is sold at a foreclosure sale for $150,000. Which lien will LIKELY be paid first out of the proceeds of the sale?

A

Ad valorem tax lien

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39
Q

If someone does not pay their property taxes on time, on which date does interest begin accruing?

A

January 6 of the following year

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40
Q

Which is LEAST LIKELY to be a factor on which special assessment rates are calculated?

A

income of the property owner

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41
Q

What is the first day of the fiscal year for North Carolina counties and municipalities?

A

July 1 

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42
Q

According to the North Carolina tax timetable, property owners should expect to get their tax bills shortly after

A

July 1

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43
Q

The city assesses a specific tax to replace the curbs and lights on Marcia’s street, and she ignores the tax bill, as she has ignored all of her other bills. The city files a lien. Eventually, the bank forecloses on her mortgage. Of the four liens on Marcia’s property, which is in first priority?

A

ad valorem tax lien

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44
Q

Violet has qualified for a North Carolina Homestead Exclusion based on her age. This means she is at least

A

65 years old

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45
Q

Under the provisions of the Machinery Act, North Carolina counties must reassess property values at least once every

A

Eight years 

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46
Q

Of these, which is LEAST LIKELY to be paid for with a special assessment?

A

New Sports stadium

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47
Q

A North Carolina county has a tax rate of $1.85 per $100. What is the annual tax amount if the market value of the property is $362,000?

A

6697

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48
Q

Which is LEAST LIKELY to be a taxing unit in the State of North Carolina under the provisions of the Machinery Act?

A

The state 

49
Q

The _____________ of a property is the theoretical price that a piece of property would bring if placed on the open market for a reasonable time, with a buyer willing (but not forced) to buy, and a seller willing (but not forced) to sell.

A

Market value 

50
Q

Solomon has a home in North Carolina. On which date do his unpaid property taxes attach to his property as a lien?

A

January 1 the start of the new fiscal year 

51
Q

How often will ad valorem property taxes be levied against a North Carolina property?

A

Annually 

52
Q

What is the MOST LIKELY method for a North Carolina town to pay for the installation of new sidewalks in an older residential neighborhood?

A

Impose a special assessment 

53
Q

Which of these properties is LEAST LIKELY to be exempt from property taxes?

A

apartment buildings

54
Q

Timothy is a tax assessor, which means that he is MOST LIKELY a _____________ official.

A

local government

55
Q

The value placed on land and buildings by a city, town, or county for the purpose of levying annual real estate taxes is known as the

A

assessed value

56
Q

In North Carolina, the tax rate is expressed in

A

dollars per $100 of assessed value.

57
Q

A property has a market value of $150,000 and was assessed at 80%. The tax rate is $1.25 per $100 of assessed value. What is the annual property tax?

A

1875

58
Q

Scott received his tax bill in July. His property taxes will be considered delinquent if he does not pay them by

A

January 31 of the following year.

59
Q

Amanda hired a surveyor to create a legal description for her property. Should she expect the legal description to describe the improvements on the property?

A

No

60
Q

When drawing the shape of a lot using the metes and bounds system, you typically move counterclockwise.

A

False

61
Q

The metes and bounds system describes the perimeter of the property.

A

True

62
Q

A range is a strip of land running east and west.

A

False

63
Q

Each section in the government survey system is one mile by one mile.

A

True

64
Q

When numbering the sections of a township, 1 is always in the northeast corner.

A

False

65
Q

Simon described a property using a lot and block number. This number is part of a government survey.

A

False

66
Q

Max had a professional surveyor create an actual survey so he would have a legal description of his property.

A

True

67
Q

When a person dies with a will, it’s called intestate.

A

False

68
Q

Raymond’s Aunt Martha has passed away. The process by which Martha’s property is distributed is called probate.

A

True

69
Q

The process by which a deceased’s property is distributed is called probate.

A

True

70
Q

Involuntary alienation is an action that the property owner takes of his own free will to transfer ownership of real property.

A

False

71
Q

Adverse Possession is the open, notorious, hostile, and uninterrupted possession of another person’s property for a number of years, after which time the adverse possessor may obtain title to the property.

A

True

72
Q

Which of the following describes a township tier?

A

Six-mile strip of land running east and west parallel to a baseline

73
Q

Mike is selling property to Darlene. Mike is the ___________ and Darlene is the ___________.

A

grantor / grantee

74
Q

Fred and Ida want to give their beach house to their daughter, and to protect her interests, they want to transfer the property via a deed. Since the property is a gift, it’s not necessary to include any words of conveyance in the deed.

A

False

75
Q

Michael, the grantor, is giving a deed to grantee Anita. For Michael’s deed to be valid, it must include Anita’s signature.

A

False

76
Q

In her deed, Brandy has included a statement after the words of conveyance that includes “to have and to hold.” This statement is called the granting clause.

A

False

77
Q

Karen signed a deed granting her property to her son, Albert, using a property description from an old deed with an inaccurate description. Is this a valid deed?

A

No

78
Q

On his deathbed, Norman signs a deed granting his property to his girlfriend Tiffany, who is hiking in the Himalayan Mountains. The deed has all of the elements of a valid deed. Norman dies before Tiffany can be contacted. Does the deed convey title to Tiffany?

A

No

79
Q

A general warranty deed gives the grantee the least possible protection

A

False

80
Q

Deeds without warranties cannot transfer title to real property

A

False

81
Q

Joe wants to sell his rectangular lot. The legal description in the deed describes only three sides; it does not meet back at the point of beginning. The person typing the deed missed the fourth side. Before he can sell the lot, Joe needs a quitclaim deed.

A

True

82
Q

Grandpa Fred has owned a cottage near the beach for many years that he would like to pass on to his granddaughter, Amy. Grandpa Fred executed and delivered a valid deed to Amy on her 21st birthday, September 23, 2016, but Amy did not record the deed until November 15, 2018. By that time, the deed had become void and ownership reverted back to Grandpa Fred. Fred has full ownership and can transfer his property to someone else, if he so chooses. He could also give it to Amy again, but he would have to execute a new deed.

A

True

83
Q

Bobby Sue just sold her North Carolina home to new owner Billy Joe. This means that an excise tax is levied on the property based on the property value or sales price.

A

False

84
Q

Josie is purchasing a property and has agreed to accept a loan from seller Melanie (seller financing). The agreed sales price of Melanie’s property is $145,420. Josie is paying $15,000 cash at the closing. The remaining $130,420 will be the amount of the seller-financed loan, which Josie will pay over the next 15 years. How much is the excise tax owed?

A

291

85
Q

Which of the following deeds is most preferential from the point of view of the grantor?

A

quitclaim deed

86
Q

Which deed guarantees title against all encumbrances occurring during any previous ownership, usually with the phrase “convey and warrant forever”?

A

general warranty deed

87
Q

In North Carolina, the _______________ requires that real estate contracts be in writing to be enforceable.

A

Statute of Frauds

88
Q

Through a ______________ warranty deed, the grantor warrants title against all defects that may have arisen before or during the grantor’s ownership.

A

general

89
Q

A sheriff’s deed

A

is used in a sheriff’s sale at foreclosure to satisfy a judgment to recover a debt.

90
Q

Title insurance covers the policyholder against a future event

A

False

91
Q

A mortgagee’s title insurance policy refers to an owner’s policy.

A

False

92
Q

All defects to title must be removed before a title insurance policy can be issued.

A

False

93
Q

Lois wants to record the deed to a rental property she just bought. The deed must include a certificate of the address of the property before the deed can be recorded.

A

False

94
Q

Chris is buying Lori’s house. At settlement, Chris brings his money, and Lori signs the deed and hands it to Chris. Who now owns the property?

A

Chris

95
Q

Who does the public believe owns the property that Chris just bought from Lori?

A

Lori

96
Q

A couple of years later, Jacob decides to put the property on the market. Prospective buyer Susan goes to the courthouse and reviews all documents pertaining to the property she might buy. Susan is said to have inquiry notice

A

False

97
Q

Chris records his deed. He has now provided actual notice

A

False

98
Q

Arthur gave a deed of gift to his property to Linda, and Linda promptly recorded the deed. Shortly thereafter, Arthur entered into a purchase agreement with Susan for the same property. After the transaction closed, Susan promptly recorded the deed. Nevertheless, Susan does not own any interest in the property. Because the prior deed of gift to Linda was valid and was recorded first, Linda owns the property. This makes the sale to Susan invalid.

A

True

99
Q

Aaron sold his property to Ivan, but Ivan did not record the deed. Shortly thereafter, in an attempt to keep the property in the family, Aaron gave a deed of gift to his daughter and encouraged her to record it promptly, which she did. Because Ivan did not record the deed, the daughter’s deed takes precedence (has priority).

A

False

100
Q

Earl has just entered into a residential purchase contract to buy Danielle’s house on Main Street. For Earl’s interest in this property to be protected, it must be recorded.

A

True

101
Q

Paul loses the original deed to his house in a flood. Is his title in jeopardy?

A

No

102
Q

Buyer Bill has driven down to the county register of deeds to record a deed for the property he just bought from Christine. For the deed to be recorded, Bill must pay any applicable fees and must provide evidence that the excise tax has been paid.

A

True

103
Q

North Carolina’s Marketable Title Act eliminated all defects in title and all claims that are 30 years old or more.

A

False

104
Q

A lender typically requires title insurance to cover the

A

Mortgagee

105
Q

Which document indicates the status of the title as of the day it is issued?

A

Certificate of title

106
Q

A title insurance policy

A

protects the property owner against losses resulting from undiscovered title defects and encumbrances on the property.

107
Q

You find out that the house you grew up in is for sale. The seller tells you that there’s a $5,000 lien on the property that he has no interest in paying, but he’ll sell you the house with the lien. The title insurance company will treat that lien as a/an

A

Exception 

108
Q

Stephan buys a house from Joanne. Several documents show up before and during the settlement process. Which provides the best evidence that Joanne is passing marketable title to Stephan?

A

title insurance policy

109
Q

What is the term that describes how title to land is gained by the open and notorious, hostile and adverse, exclusive and continuous use of another’s land for a designated period of time, as defined by laws of the state?

A

Adverse possession

110
Q

Land Loans Inc, a mortgage lender, typically requires title insurance to protect itself. This insurance covers the

A

Mortgagor

111
Q

Which type of description is inadequate for describing property in a deed?

A

house number and street

112
Q

Each of these is an example of involuntary alienation EXCEPT

A

Calvin dedicates property to the city for a park.

113
Q

At closing, who signs the new deed?

A

The seller only

114
Q

What provides the best protection against loss or damages from defects in title?

A

Title insurance

115
Q

Of these types of deeds, which would most likely be used to clear a cloud on a title, such as a misspelled name?

A

Quitclaim deed 

116
Q

Stedman granted a deed to Michelle using these words: “I, Stedman, hereby convey and warrant 12 acres of my estate to Michelle, to have and to hold forever.” In all likelihood, what type of deed did Michelle receive?

A

general warranty deed

117
Q

Boris dies intestate. To dispose of his estate,

A

the estate must be probated.

118
Q

Bill is buying a house from Susan and Rob. Who must sign the deed at settlement?

A

the grantor

North Carolina tree licensing exam (4 decks)

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