Chpt 1 - Property Rights: Private & Governmental Flashcards
1
Q
What is Ad Valorem?
A
a) concept for property taxes
b) means according to value
2
Q
What is Allodial System?
A
a) concept of land ownership
b) allows private individuals own property
3
Q
__________ is attaching personal property to land so law views it as part of the real property.
A
Annexation
4
Q
Property taxes are paid in __________.
A
Arrears
5
Q
__________ is when one owes payment on something they have use of but has not yet paid for.
A
Arrears
6
Q
Arrears is also known as __________.
A
Accrued Expenses
7
Q
__________ is a percentage of the market value (for property tax purposes).
A
Assessed Value
8
Q
In Arizona, what is the assessed value percentage for: a) residential property; b) raw land; and c) commercial property?
A
a) 10% residential property
b) 15% raw land
c) 18% commercial property
9
Q
A court ordered seizure of a defendant’s property to satisfy a judgment is known as __________.
A
Attachment
10
Q
In the case of real property, attachment creates a __________.
A
Lien
11
Q
__________ is a written instrument that transfers ownership of tangible personal property.
A
Bill of Sale
12
Q
A tract of land between two differently zoned areas is known as a __________.
A
Buffer Zone
13
Q
Personal property is known as __________.
A
Chattel
14
Q
What is a Community Facilities District (CFD)?
A
a) special purpose public improvement district in AZ
b) ability to levy long-term bonds
c) finance & provide public infrastructure (e.g. water, sewer, schools, streets)
15
Q
The act or process of taking private property for public use is __________.
A
Condemnation
16
Q
Condemnation is also known as __________ and is an example of government’s power of __________.
A
a) Appropriation
b) Eminent Domain
17
Q
__________ is a declaration that a structure is unfit for occupancy and must be closed or demolished.
A
Condemnation
18
Q
__________ is when title to property passes by operation of law to heirs of one who dies without will.
A
Law of Descent
19
Q
__________ are also known as Fructus Industriales
A
Emblements
20
Q
Farm crops that require annual cultivation are known as __________.
A
Emblements
21
Q
Can emblements be removed by a tenant farmer if the owner sells land?
A
Yes
22
Q
Emblements are considered __________ property.
A
Personal
23
Q
How are emblements transferred?
A
Bill of Sale (since they are personal property)
24
Q
The power/right of government to take private real estate for public use upon payment of just and equitable compensation is _____________.
A
Eminent Domain
25
The legal process of taking private property via eminent domain is called __________ or __________.
1) Condemnation
| 2) Appropriation
26
__________ is when a person dies without a valid will or heirs and the property reverts to the state.
Escheat
27
__________ is when real property is owned by a lord, king, or other sovereign.
Feudal System
28
An old rule continues to apply to an existing situation while a new rule will apply to all future cases. This is known as _________.
Grandfathered
29
__________ is when a person dies without a will causing his/her estate to pass on by the laws of descent and distribution.
Intestate
30
__________ is a characteristic of real property in which each piece of land, building and/or house is a different piece of real estate.
Non-homogeneity
31
Non-homogeneity is also known as __________.
Uniqueness
32
__________ is the right of the government to pass legislation protecting the safety, health and welfare of the public.
Police Power
33
Real Property consists of:
a) __________
b) __________
c) __________
d) __________
a) Physical land itself to center of earth
b) Sky above
c) Anything permanently affixed to land (buildings, improvements, growing plants, fixtures)
d) Associated rights (water rights, easements)
34
Real Property is also known as __________.
Realty
35
The distance between a lot's boundary lines and improvements is a __________.
Setback
36
Process through which fixtures are detached from land and revert back to personal property.
Severance
37
__________ is the location of a parcel of real property.
Situs
38
A tax levied against properties that benefit from a public improvement to cover the cost of said improvement.
Special Assessment
39
Special Assessments create a(n) __________ lien.
Involuntary Lien
40
Item of personal property that is annexed to leased property and necessary to a trade or business is known as a __________.
Trade Fixture
41
When can a tenant remove a trade fixture?
Prior to expiration of lease.
42
What are the two basic systems of property ownership?
1. Feudal
| 2. Allodial
43
In a __________ system of ownership the king owns all the land.
Feudal
44
In a __________ system of ownership individuals own the land.
Allodial
45
With the allodial system comes the __________.
Bundle of Rights
46
What is included in the Bundle of Rights?
```
"DEEP C"
Disposition
Exclusion
Enjoyment
Possession
Control
```
47
If a person secures the entire Bundle of Rights they are said to be the __________.
Owner
48
The right that allows an owner to transfer all or some of the rights to other people.
Disposition
49
The right that allows an owner to stop others from using or entering the property.
Exclusion
50
The right that allows an owner the freedom to possess and use the land without interference from other people or society.
Enjoyment
51
The right that gives an owner the right to physically occupy the land, use the land and make it productive.
Possession
52
The right that allows an owner to physically alter/change the property.
Control
53
Land consists of __________, __________ and __________ rights.
a) surface
b) subsurface
c) air
54
Real Estate consists of __________ and __________.
a) Land (surface, subsurface, air)
| b) Attachments (items and property attached to the land)
55
Real Property consists of __________, __________ and __________.
a) Land (surface, subsurface, air)
b) Real Estate (Land + Attachments [items and property attached to the land])
c) Legal interests, rights, privileges (Bundle of Rights)
56
The actual surface of the earth including everything under the ground to center of earth and everything over the land into the air.
Land
57
The physical land itself to center of earth, sky above and anything permanently affixed to the land (e.g. buildings, improvements, growing plants & fixtures).
Real Estate
58
Real property that can be touched (e.g. land, buildings & improvements)
Corporeal
| PHYSICAL / TANGIBLE
59
Non-physical right associated w/ownership of property (e.g. hereditaments, rights of way, easement, water right)
Incorporeal
| NON-PHYSICAL ATTACHMENTS / INTANGIBLE
60
An __________ is something that belongs to property and passes with property. It does not need to be attached.
Appurtenance
61
What "runs with the land"?
Appurtenance
62
Law classifies all property as __________ or __________.
1. Real
| 2. Personal
63
Real Property is also known as __________.
Realty.
64
Personal Property is also known as __________ or __________.
1. Chattel
| 2. Personalty
65
Property that is movable and not intended to remain with the land.
Personal Property
| aka Chattel or Personalty
66
Personal Property includes __________ and __________ objects.
1. Tangible
| 2. Intangible
67
Personal Property objects that can be touched are __________.
Tangible (e.g. beds, chairs, tables)
68
Personal Property objects that cannot be touched are ___________.
Intangible (copyrights, patents, trademarks)
69
Document used to transfer title in real property.
Deed
70
Document used to transfer title in personal property.
Bill of Sale
71
The two (2) types of real property attachments.
1. Natural Attachment
| 2. Man-Made Attachment
72
Natural Attachments are also known as __________.
Fructus Naturales
73
Things growing on land (trees, shrubs, crops).
Natural Attachments (aka Fructus Naturales)
74
When a Natural Attachment is growing on land it is considered __________ property.
Real
75
When a Natural Attachment is removed from land it is considered __________ property.
Personal
76
Crops and other vegetation that are cultivated annually or seasonally are known as __________.
```
Fructus Industriales (aka Emblements)
(fruits of industry)
```
77
Emblements are also known as __________.
Fructus Industriales
78
Fructus Industriales (aka __________) are considered __________ property.
1. Emblements
| 2. Personal
79
The ___________ allows a tenant farmer to re-enter land to harvest crops planted by tenant farmer but mature after tenant's departure.
Doctrine of Emblements
80
Man-Man Attachments are also known as __________.
Fixtures
81
Fixtures are __________ property.
Personal
82
A man-made attachment that is an item of personal property attached to or closely associated with real property in such a way it becomes legally part of real property.
Fixture
83
An __________ is a major fixture that significantly increases value of property.
Improvement
84
The four (4) government powers are:
1. __________,
2. __________,
3. __________, and
4. __________.
```
PETE
P = Police Power
E = Eminent Domain
T = Taxation
E = Escheat
```
85
The right of the government to pass legislation protecting the safety, health, and welfare of the public is __________.
Police Power
1 of the 4 types of government powers
Federal, State and Local Govt
e.g.: zoning, bldg code, subdivision regs, environmental laws
86
The power or right of governmental bodies to take private real estate for public use upon payment of just and equitable compensation to the owner is __________.
Eminent Domain
Federal and State Govt
1 of the 4 types of government powers
87
The right of government to tax private property to pay for the costs of government and area improvements is __________.
Taxation
1 of the 4 types of government powers
State and Local Govt
88
The right of government to take back property if owner dies without will or heirs or if property is abandoned is called __________.
Escheat
1 of 4 types of government powers
State and County Govt
89
The state has the power to pass legislation under __________ power.
Police
90
Local governments get their authority through legislation passed by the state called __________.
Enabling Acts
91
The purpose of zoning ordinances is to __________.
Regulate types of activity that may be undertaken in different areas.
92
The dimension across the access side of a parcel of land is called the __________.
Front Footage
| aka Frontage
93
Front Footage is also known as __________.
Frontage
94
When referring to lot size, __________ is the first number.
Front Footage
| aka Frontage
95
The legal rights conferred to owners of real property (including rights to mortgage, sell, make improvements, enjoyment, lease and use property).
```
Bundle of Rights
"DEEP C"
Disposition
Exclusion
Enjoyment
Possession
Control
```
96
Police Power = __________.
Without Compensation
97
__________ is the ratio of land to improvements.
Density
98
__________ occur when land use does not conform to current zoning laws but is allowed because land use was established before the new laws were enacted.
Non-Conforming Uses
99
The use of a site or structure that was legal before a change in zoning and is permitted to continue, though it does not comply with current zoning law.
Non-Conforming Use
100
__________ is a permit obtained from local zoning authority allowing holder to use property/build a structure in a way that legally violates the zoning ordinance.
Variance
101
What are the two types of variances?
1. Use Variance
| 2. Area Variance
102
__________ is a variance that permits an owner to use the property in a way that is not ordinarily allowed in that zone.
Use Variance
| e.g. commercial use in residential zone
103
__________ is a variance that permits an owner to build a structure that does not strictly comply with the zoning law's setback requirements, height limits, or other rules affecting the size or placement of buildings.
Area Variance
104
A revision in zoning law is called __________.
Rezoning
105
__________ is the illegal rezoning of a single parcel or small area to benefit one or more property owners rather than carry out the objectives of a community's master plan.
Spot Zoning
106
__________ set construction standards.
Building Codes
107
A __________ is a document issued by governmental authority confirming a structure is fit and ready for occupancy.
Certificate of Occupancy
108
If there is a discrepancy between a building permit and a deed restriction set out in the CCandRs which will prevail?
Strictest rule prevails.
109
Eminent Domain = __________
| Condemnation = __________
Power (Right)
| Process (Action)
110
__________ is government's right to take (appropriate/condemn) private property for public use if owner is paid just compensation.
Eminent Domain
111
__________ is the process of taking private property for public use with just compensation.
Condemnation (aka Appropriation)
112
Condemnation (aka __________) can / cannot occur without due process of law.
Appropriation
| Cannot
113
__________ is when government action caused significant loss of value or inability to use property therefore property owner brings lawsuit to force condemnation.
Inverse Condemnation
114
__________ is the process of the government levying a charge on people or items.
Taxation
115
Government has authority to pass revenue-generating laws (__________).
Taxation
116
The two (2) types of real estate taxes are: __________ and __________.
```
Ad Valorem (according to value)
Special Assessments (according to benefits received)
```
117
Ad Valorem means __________.
According to Value
118
Taxes levied only against properties that benefit from a public improvement are called __________.
Special Assessments
119
Property taxes are collected by __________.
County Treasurer
120
Community Facilities Districts = __________.
Bonds
121
__________ is a special taxing district that allows the financing of public improvements with 20 year bonds paid by homeowners who benefit from the improvements.
Community Facilities Districts (CFD)
122
Property taxes are levied __________ but paid __________.
Annually
| Semi-Annually
123
Unpaid property taxes can result in a __________.
Lien
124
A __________ is a financial encumbrance that provides security for a debt, giving lien holder right to foreclose on property if debt not paid.
Lien
125
Unpaid property taxes = lien on __________
1st Monday in January
126
A __________ is a nonpossessory interest in property, giving a lienholder the right to foreclose if owner does not pay a debt owed the lienholder.
Lien
127
A lien that attaches only to a particular piece of property.
Specific Lien
128
A lien that arises by operation of law, without the consent of property owner.
Involuntary Lien
| aka Statutory Lien
129
Involuntary Lien is also known as __________.
Statutory Lien
130
A lien that does not have to be recorded in the public records to be valid.
Unrecorded Lien
131
A property tax lien is a ____________, __________, and __________ lien.
Specific,
Involuntary,
Unrecorded Lien
132
An Ad Valorem property tax lien is the __________ lien against the property in the event of foreclosure.
Superior
133
Property tax liens are __________ superior and __________.
Collectively superior
| Unrecorded
134
What is the superior lien? What is the second lien?
a) 2006 Property Taxes
b) 2007 Property Taxes
c) 1st Mortgage
d) HELOC
Superior Lien = a and b (Collectively Superior)
Second Lien = c
135
How are Arizona property taxes are paid?
In Arrears
136
What does it mean to say that Arizona property taxes are paid in arrears?
They are paid after the fact.
137
How are mortgage payments paid?
In Arrears
138
How is rent paid?
In Advance
139
How is the first half property tax period defined in Arizona?
January 1 - June 30
140
When are the first half property taxes due in Arizona?
October 1
141
When are the first half property taxes delinquent in Arizona?
November 1
142
How is the second half property tax period defined in Arizona?
July 1 - December 31
143
When are the second half property taxes due in Arizona?
March 1
144
When are the second half property taxes delinquent in Arizona?
May 1
145
What is the interest penalty for property taxes in Arizona? When does the delinquent status begin?
16% per annum
| November 1 and May 1
146
Tax lien sale is held in __________.
February
147
At a tax lien sale, registered participants bid on the __________ they are willing to accept
Rate of Interest
148
If there are multiple bidders for a tax lien, the successful bidder is the one who accepts the __________ rate of interest from 0% - 16%.
Lowest
149
Successful bidder on a tax lien:
1. __________,
2. __________, and
3. __________.
1. Takes state's lien position.
2. Receives Certificate of Purchase
3. Pays the property taxes due
150
If there are no bidders, county tax collector holds the tax certificates and sells them __________ to an investor.
At any time
151
Property owner has __________ from __________ to redeem the tax lien.
Three (3) Years
| Date of Tax Lien Sale
152
If property owner does not redeem a tax lien within __________, the certificate of purchase holder may initiate __________.
Three (3) Years
| Foreclosure
153
A __________ is a tax levied on specific parcels of real estate to pay for local improvements.
Special Assessments
154
Special Assessments are assessed based on __________ of a property.
Front Footage
| aka Frontage
155
__________ is each foot of land abutting a street under improvement and is the __________ dimension given in a lot size.
```
Front Footage (aka Frontage)
First
```
156
Special Assessment taxes are usually paid in __________ and due on dates when ad valorem property taxes are __________.
Installments
| Delinquent
157
Property owners have right to appeal __________ of their property or the __________, but not the __________ itself.
Classification
Assessed Valuation
Tax
158
Due date for property taxes for the first half of the year is __________.
October 1
159
Delinquent date for property taxes for the first half of the year is __________.
November 1
160
Due date for property taxes for the second half of the year is __________.
March 1
161
Delinquent date for property taxes for the second half of the year is __________.
May 1
162
Property taxes are based on the __________ of the property.
Assessed Value
163
Property taxes are paid in __________.
Arrears
164
Property taxes are levied __________ and paid __________.
Annually
| Semi-Annually
165
Property taxes can be paid to __________.
County Treasurer
166
The property tax lien sale in Arizona is held in __________.
February
167
Property taxes can become a lien on __________.
January 1 (1st Monday in January)
168
The penalty for delinquent property taxes is __________.
16% interest per annum.
169
The bidding at a tax lien sale begins with __________.
16% interest per annum.
170
The successful bidder is the one who accepts __________.
The lowest interest rate.
171
The redemption period for the property tax sale is __________.
Three years from date of tax lien sale.
172
Property taxes are in __________ lien position.
First
173
Ad valorem taxes are based on __________.
Assessed Value
174
Special Assessments are based on __________.
```
Benefit Received
Front Footage (aka Frontage)
```
175
The front footage of a property is the __________.
First dimension in a lot size
176
__________ is a government power that means to "fall back" and refers to the reversion of property to the state.
Escheat
177
When a person dies __________ they die without a will, heirs or creditors.
Intestate
178
__________ property also Escheats.
Abandoned
179
When the state sells property obtained via Escheat, the proceeds are deposited into the __________.
State's General Fund
180
When a real property owner dies intestate but has heirs, the decedent's property passes to their heirs according to the state __________.
Laws of Decent
181
__________ are laws that define the order of who is entitled to the decedent's property after the estate has completed probate process.
Laws of Decent
182
__________ is a formal court proceeding to confirm the validity of a will, collect the assets, pay the decedent's debts and taxes and ultimately dispose of remaining assets.
Probate
183
__________ is the legal term for attaching or affixing personal property to real property.
Annexation
184
__________ is the process of detaching fixtures from the land and thereby revert back to __________.
Severance (aka Detachment)
| Personal
185
The five (5) legal tests for determining fixtures are:
1. __________
2. __________
3. __________
4. __________
5. __________
```
MARIA
Method of Attachment
Agreement
Relationship
Intent
Adaptability
```
186
__________ is fixture test that asks how permanent is the fixture.
Method of Attachment
187
__________ is fixture test that asks is agreement written or oral.
Agreement
188
__________ is fixture test that asks what is relationship of fixture to parties.__________.
Relationship
189
__________ is fixture test that asks what is intent of person who installed fixture.
Intent
190
__________ is fixture test that asks what is the fixtures purpose (improvement or personal use).
Adaptability
191
__________ is never factor in determining whether item is a fixture.
Cost
192
__________ are also known as business fixtures.
Trade Fixtures
193
__________ are items used in the operation of a business that are owned by the tenant.
Trade Fixtures
| aka Business Fixtures
194
Trade fixtures can be removed by a departing tenant so long as they are removed _________.
Prior to lease expiration
195
Two (2) characteristics of real property are __________ and __________.
Physical
| Economic
196
Four (4) Physical Characteristics of real property are:
1. __________
2. __________
3. __________
4. __________
1. Immobility
2. Indestructibility
3. Nonhomogeneity (aka Uniqueness)
4. Situs
197
__________ is the fact that geographic location of a parcel of real estate cannot move from one place to another.
Immobility
198
__________ is the fact that real estate cannot be destroyed.
Indestructibility
199
__________ is the fact that no two parcels of land are exactly the same.
Nonhomogeneity
| aka Uniqueness
200
Nonhomogeneity is also known as __________.
Uniqueness
201
__________ is the location of a parcel of real property.
Situs
202
__________ is the fact land is subject to the laws in the jurisdiction in which it is located.
Law of Situs
203
__________ is the single most important characteristic of land.
Preference for certain locations
| Situs
204
Three (3) Economic Characteristics of real property are:
1. __________
2. __________
3. __________
1. Scarcity
2. Modification
3. Fixity
205
__________ is the perceived supply of something relative to demand.
Scarcity
206
__________ is the fact land is immobile but improvements on the property can be constructed or removed.
Modification
207
__________ is the fact real property is considered to be a frozen or illiquid asset.
Fixity
208
Property rights that go with ownership of real property are referred to as the __________.
Bundle of Rights
209
Surface of the earth, below to the center, and above with all natural things is __________.
Land
210
Land plus man-made attachments is __________.
Real Estate
211
Real estate plus ownership rights is __________.
Real Property
212
Personal property is conveyed with a document called a __________.
Bill of Sale
213
Naturally growing plants are considered __________ property.
Real Property
214
Emblements are considered __________ property.
Personal Property
215
An item which was once personal property but is now real property is a __________.
Fixture
216
The process of attaching personal property to real property is __________.
Annexation (aka Attachment)
217
Ownership of trade fixtures depend on __________.
If they are removed prior to lease expiration.
218
__________ is not a factor in determining if an item is a fixture.
Cost
219
People's preference for a certain area is called __________.
Situs
220
The document used to transfer real property is a __________.
Deed
221
What are the five tests of a fixture?
```
MARIA
Method of Attachment
Agreement
Relationship
Intent
Adaptability
```
222
Local government gets their authority through legislation passed by the state called __________.
Enabling Acts
223
Police power is without __________.
Compensation
224
Regulation and control of the use of land is achieved through __________.
Zoning Ordinances
225
The right of the government to take private property for public good is __________.
Eminent Domain
226
The process by which property is taken for public good is __________.
Condemnation
227
When condemnation occurs, the property owner must be given __________.
Fair and Just Compensation
228
The term for someone dying without a will is __________.
Intestate
229
When an individual dies without a will and has heirs, his property is distributed according to the __________.
Laws of Descent
230
The process of verifying the validity of a will is called __________.
Probate
231
Which of the following would be considered personal property?
a. a treet
b. a bathtub
c. window blinds
d. harvested crops
D
232
Real property can be divided into corporeal and incorporeal. Which would be an incorporeal right?
a. an easement
b. fences and walls
c. all improvements
d. a house and barn
A
233
An article may be changed from realty to personalty by:
a. annexation
b. severance
c. verbal declaration
d. order of the Commissioner
B
234
Which of the following is always personal property?
a. appurtenances
b. fixtures
c. trade fixtures
d. shrubbery
C
235
Shelving and counters are securely fastened in a leased retail store. Such items are:
a. realty
b. fixtures
c. trade fixtures
d. none of these
C
236
Real estate taxes are levied:
a. biannually
b. annually
c. semi-annually
d. in even numbered years
B
237
Ordinarily, first half property taxes are due and payable:
a. March 1
b. May 1
c. October 1
d. November 1
C
238
The word "ad valorem" best means:
a. the adding of value
b. an assessment
c. according to value
d. worth is assumed
C
239
Patents, trademarks, copyrights and royalties are an example of:
a. corporeal realty
b. tangible personalty
c. incorporeal realty
d. intangible personalty
D
240
The charges levied against real estate as a result of city-installed sewer systems are called:
a. property taxes
b. a general lien
c. special assessments
d. all of these
C
241
Which of the following is NOT properly included in the concept of the power of eminent domain?
a. the right of government to confiscate personal property from the owner.
b. an inherent power of government
c. just compensation at fair market value
d. taking property through legal procedures
A
242
Escheated property is sold at public auction by the sheriff. The proceeds of the sale:
a. go to the heirs of the deceased
b. go to the county where the property is located
c. are received by the State Real Estate Department for deposit into the Recovery Fund
d. are deposited into the general fund of the State of Arizona
D
243
When rights transfer with a deed, this is referred to as:
a. chattel real
b. reversionary rights
c. leasehold
d. bundle of rights
D
244
Which is NOT an appurtenance and, therefore, does NOT pass with a standard warranty deed?
a. trade fixtures
b. trees
c. shrubs
d. custom window blinds
A
245
An apartment building is located in an area that is rezoned industrial. The property owner:
a. can maintain the property as an apartment building as long as it doesn't expand
b. must close down the apartment building
c. must apply for a variance
d. must rezone the property
A
246
When are property taxes payable?
a. January
b. November and May
c. October and May
d. October and March
D
247
Which of the following would LEAST LIKELY be a lawful use for taking homes through the power of eminent domain?
a. light rail train in Tempe
b. public K-12 school
c. shopping center
d. future freeway overpass
C
248
Which of the following would have the highest assessment ratio?
a. raw land
b. apartment building with very low vacancy
c. vacant shopping center
d. single family residence
C
| *Remember apartments considered residential for test purposes
249
When a real property tax lien is sold for failure to pay taxes, the sale is held:
a. in February
b. October 16
c. March 1
d. November 1
A
250
If the county sells a lien due to unpaid property taxes, what redemption period does the owner have?
a. 6 months
b. 1 year
c. 3 years
d. 10 years
C
