Chpt 1 - Property Rights: Private & Governmental Flashcards
What is Ad Valorem?
a) concept for property taxes
b) means according to value
What is Allodial System?
a) concept of land ownership
b) allows private individuals own property
__________ is attaching personal property to land so law views it as part of the real property.
Annexation
Property taxes are paid in __________.
Arrears
__________ is when one owes payment on something they have use of but has not yet paid for.
Arrears
Arrears is also known as __________.
Accrued Expenses
__________ is a percentage of the market value (for property tax purposes).
Assessed Value
In Arizona, what is the assessed value percentage for: a) residential property; b) raw land; and c) commercial property?
a) 10% residential property
b) 15% raw land
c) 18% commercial property
A court ordered seizure of a defendant’s property to satisfy a judgment is known as __________.
Attachment
In the case of real property, attachment creates a __________.
Lien
__________ is a written instrument that transfers ownership of tangible personal property.
Bill of Sale
A tract of land between two differently zoned areas is known as a __________.
Buffer Zone
Personal property is known as __________.
Chattel
What is a Community Facilities District (CFD)?
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)
The act or process of taking private property for public use is __________.
Condemnation
Condemnation is also known as __________ and is an example of government’s power of __________.
a) Appropriation
b) Eminent Domain
__________ is a declaration that a structure is unfit for occupancy and must be closed or demolished.
Condemnation
__________ is when title to property passes by operation of law to heirs of one who dies without will.
Law of Descent
__________ are also known as Fructus Industriales
Emblements
Farm crops that require annual cultivation are known as __________.
Emblements
Can emblements be removed by a tenant farmer if the owner sells land?
Yes
Emblements are considered __________ property.
Personal
How are emblements transferred?
Bill of Sale (since they are personal property)
The power/right of government to take private real estate for public use upon payment of just and equitable compensation is _____________.
Eminent Domain
The legal process of taking private property via eminent domain is called __________ or __________.
1) Condemnation
2) Appropriation
__________ is when a person dies without a valid will or heirs and the property reverts to the state.
Escheat
__________ is when real property is owned by a lord, king, or other sovereign.
Feudal System
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
__________ is when a person dies without a will causing his/her estate to pass on by the laws of descent and distribution.
Intestate
__________ 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
Non-homogeneity is also known as __________.
Uniqueness
__________ is the right of the government to pass legislation protecting the safety, health and welfare of the public.
Police Power
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)
Real Property is also known as __________.
Realty
The distance between a lot’s boundary lines and improvements is a __________.
Setback
Process through which fixtures are detached from land and revert back to personal property.
Severance
__________ is the location of a parcel of real property.
Situs
A tax levied against properties that benefit from a public improvement to cover the cost of said improvement.
Special Assessment
Special Assessments create a(n) __________ lien.
Involuntary Lien
Item of personal property that is annexed to leased property and necessary to a trade or business is known as a __________.
Trade Fixture
When can a tenant remove a trade fixture?
Prior to expiration of lease.
What are the two basic systems of property ownership?
- Feudal
2. Allodial
In a __________ system of ownership the king owns all the land.
Feudal
In a __________ system of ownership individuals own the land.
Allodial
With the allodial system comes the __________.
Bundle of Rights
What is included in the Bundle of Rights?
"DEEP C" Disposition Exclusion Enjoyment Possession Control
If a person secures the entire Bundle of Rights they are said to be the __________.
Owner
The right that allows an owner to transfer all or some of the rights to other people.
Disposition
The right that allows an owner to stop others from using or entering the property.
Exclusion
The right that allows an owner the freedom to possess and use the land without interference from other people or society.
Enjoyment
The right that gives an owner the right to physically occupy the land, use the land and make it productive.
Possession
The right that allows an owner to physically alter/change the property.
Control
Land consists of __________, __________ and __________ rights.
a) surface
b) subsurface
c) air
Real Estate consists of __________ and __________.
a) Land (surface, subsurface, air)
b) Attachments (items and property attached to the land)
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)
The actual surface of the earth including everything under the ground to center of earth and everything over the land into the air.
Land
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
Real property that can be touched (e.g. land, buildings & improvements)
Corporeal
PHYSICAL / TANGIBLE
Non-physical right associated w/ownership of property (e.g. hereditaments, rights of way, easement, water right)
Incorporeal
NON-PHYSICAL ATTACHMENTS / INTANGIBLE
An __________ is something that belongs to property and passes with property. It does not need to be attached.
Appurtenance
What “runs with the land”?
Appurtenance
Law classifies all property as __________ or __________.
- Real
2. Personal
Real Property is also known as __________.
Realty.
Personal Property is also known as __________ or __________.
- Chattel
2. Personalty
Property that is movable and not intended to remain with the land.
Personal Property
aka Chattel or Personalty
Personal Property includes __________ and __________ objects.
- Tangible
2. Intangible
Personal Property objects that can be touched are __________.
Tangible (e.g. beds, chairs, tables)
Personal Property objects that cannot be touched are ___________.
Intangible (copyrights, patents, trademarks)
Document used to transfer title in real property.
Deed
Document used to transfer title in personal property.
Bill of Sale
The two (2) types of real property attachments.
- Natural Attachment
2. Man-Made Attachment
Natural Attachments are also known as __________.
Fructus Naturales
Things growing on land (trees, shrubs, crops).
Natural Attachments (aka Fructus Naturales)
When a Natural Attachment is growing on land it is considered __________ property.
Real
When a Natural Attachment is removed from land it is considered __________ property.
Personal
Crops and other vegetation that are cultivated annually or seasonally are known as __________.
Fructus Industriales (aka Emblements) (fruits of industry)
Emblements are also known as __________.
Fructus Industriales
Fructus Industriales (aka __________) are considered __________ property.
- Emblements
2. Personal
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
Man-Man Attachments are also known as __________.
Fixtures
Fixtures are __________ property.
Personal
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
An __________ is a major fixture that significantly increases value of property.
Improvement
The four (4) government powers are:
- __________,
- __________,
- __________, and
- __________.
PETE P = Police Power E = Eminent Domain T = Taxation E = Escheat
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
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
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
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
The state has the power to pass legislation under __________ power.
Police
Local governments get their authority through legislation passed by the state called __________.
Enabling Acts
The purpose of zoning ordinances is to __________.
Regulate types of activity that may be undertaken in different areas.
The dimension across the access side of a parcel of land is called the __________.
Front Footage
aka Frontage
Front Footage is also known as __________.
Frontage
When referring to lot size, __________ is the first number.
Front Footage
aka Frontage
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
Police Power = __________.
Without Compensation
__________ is the ratio of land to improvements.
Density
__________ 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
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
__________ 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
What are the two types of variances?
- Use Variance
2. Area Variance
__________ 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
__________ 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
A revision in zoning law is called __________.
Rezoning
__________ 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
__________ set construction standards.
Building Codes
A __________ is a document issued by governmental authority confirming a structure is fit and ready for occupancy.
Certificate of Occupancy
If there is a discrepancy between a building permit and a deed restriction set out in the CCandRs which will prevail?
Strictest rule prevails.
Eminent Domain = __________
Condemnation = __________
Power (Right)
Process (Action)
__________ is government’s right to take (appropriate/condemn) private property for public use if owner is paid just compensation.
Eminent Domain
__________ is the process of taking private property for public use with just compensation.
Condemnation (aka Appropriation)
Condemnation (aka __________) can / cannot occur without due process of law.
Appropriation
Cannot
__________ is when government action caused significant loss of value or inability to use property therefore property owner brings lawsuit to force condemnation.
Inverse Condemnation
__________ is the process of the government levying a charge on people or items.
Taxation
Government has authority to pass revenue-generating laws (__________).
Taxation
The two (2) types of real estate taxes are: __________ and __________.
Ad Valorem (according to value) Special Assessments (according to benefits received)
Ad Valorem means __________.
According to Value
Taxes levied only against properties that benefit from a public improvement are called __________.
Special Assessments
Property taxes are collected by __________.
County Treasurer
Community Facilities Districts = __________.
Bonds
__________ 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)
Property taxes are levied __________ but paid __________.
Annually
Semi-Annually
Unpaid property taxes can result in a __________.
Lien
A __________ is a financial encumbrance that provides security for a debt, giving lien holder right to foreclose on property if debt not paid.
Lien
Unpaid property taxes = lien on __________
1st Monday in January
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
A lien that attaches only to a particular piece of property.
Specific Lien
A lien that arises by operation of law, without the consent of property owner.
Involuntary Lien
aka Statutory Lien
Involuntary Lien is also known as __________.
Statutory Lien
A lien that does not have to be recorded in the public records to be valid.
Unrecorded Lien
A property tax lien is a ____________, __________, and __________ lien.
Specific,
Involuntary,
Unrecorded Lien
An Ad Valorem property tax lien is the __________ lien against the property in the event of foreclosure.
Superior
Property tax liens are __________ superior and __________.
Collectively superior
Unrecorded
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
How are Arizona property taxes are paid?
In Arrears
What does it mean to say that Arizona property taxes are paid in arrears?
They are paid after the fact.
How are mortgage payments paid?
In Arrears
How is rent paid?
In Advance
How is the first half property tax period defined in Arizona?
January 1 - June 30
When are the first half property taxes due in Arizona?
October 1
When are the first half property taxes delinquent in Arizona?
November 1
How is the second half property tax period defined in Arizona?
July 1 - December 31
When are the second half property taxes due in Arizona?
March 1
When are the second half property taxes delinquent in Arizona?
May 1
What is the interest penalty for property taxes in Arizona? When does the delinquent status begin?
16% per annum
November 1 and May 1
Tax lien sale is held in __________.
February
At a tax lien sale, registered participants bid on the __________ they are willing to accept
Rate of Interest
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
Successful bidder on a tax lien:
- __________,
- __________, and
- __________.
- Takes state’s lien position.
- Receives Certificate of Purchase
- Pays the property taxes due
If there are no bidders, county tax collector holds the tax certificates and sells them __________ to an investor.
At any time
Property owner has __________ from __________ to redeem the tax lien.
Three (3) Years
Date of Tax Lien Sale
If property owner does not redeem a tax lien within __________, the certificate of purchase holder may initiate __________.
Three (3) Years
Foreclosure
A __________ is a tax levied on specific parcels of real estate to pay for local improvements.
Special Assessments
Special Assessments are assessed based on __________ of a property.
Front Footage
aka Frontage
__________ is each foot of land abutting a street under improvement and is the __________ dimension given in a lot size.
Front Footage (aka Frontage) First
Special Assessment taxes are usually paid in __________ and due on dates when ad valorem property taxes are __________.
Installments
Delinquent
Property owners have right to appeal __________ of their property or the __________, but not the __________ itself.
Classification
Assessed Valuation
Tax
Due date for property taxes for the first half of the year is __________.
October 1
Delinquent date for property taxes for the first half of the year is __________.
November 1
Due date for property taxes for the second half of the year is __________.
March 1
Delinquent date for property taxes for the second half of the year is __________.
May 1
Property taxes are based on the __________ of the property.
Assessed Value
Property taxes are paid in __________.
Arrears
Property taxes are levied __________ and paid __________.
Annually
Semi-Annually
Property taxes can be paid to __________.
County Treasurer
The property tax lien sale in Arizona is held in __________.
February
Property taxes can become a lien on __________.
January 1 (1st Monday in January)
The penalty for delinquent property taxes is __________.
16% interest per annum.
The bidding at a tax lien sale begins with __________.
16% interest per annum.
The successful bidder is the one who accepts __________.
The lowest interest rate.
The redemption period for the property tax sale is __________.
Three years from date of tax lien sale.
Property taxes are in __________ lien position.
First
Ad valorem taxes are based on __________.
Assessed Value
Special Assessments are based on __________.
Benefit Received Front Footage (aka Frontage)
The front footage of a property is the __________.
First dimension in a lot size
__________ is a government power that means to “fall back” and refers to the reversion of property to the state.
Escheat
When a person dies __________ they die without a will, heirs or creditors.
Intestate
__________ property also Escheats.
Abandoned
When the state sells property obtained via Escheat, the proceeds are deposited into the __________.
State’s General Fund
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
__________ 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
__________ 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
__________ is the legal term for attaching or affixing personal property to real property.
Annexation
__________ is the process of detaching fixtures from the land and thereby revert back to __________.
Severance (aka Detachment)
Personal
The five (5) legal tests for determining fixtures are:
- __________
- __________
- __________
- __________
- __________
MARIA Method of Attachment Agreement Relationship Intent Adaptability
__________ is fixture test that asks how permanent is the fixture.
Method of Attachment
__________ is fixture test that asks is agreement written or oral.
Agreement
__________ is fixture test that asks what is relationship of fixture to parties.__________.
Relationship
__________ is fixture test that asks what is intent of person who installed fixture.
Intent
__________ is fixture test that asks what is the fixtures purpose (improvement or personal use).
Adaptability
__________ is never factor in determining whether item is a fixture.
Cost
__________ are also known as business fixtures.
Trade Fixtures
__________ are items used in the operation of a business that are owned by the tenant.
Trade Fixtures
aka Business Fixtures
Trade fixtures can be removed by a departing tenant so long as they are removed _________.
Prior to lease expiration
Two (2) characteristics of real property are __________ and __________.
Physical
Economic
Four (4) Physical Characteristics of real property are:
- __________
- __________
- __________
- __________
- Immobility
- Indestructibility
- Nonhomogeneity (aka Uniqueness)
- Situs
__________ is the fact that geographic location of a parcel of real estate cannot move from one place to another.
Immobility
__________ is the fact that real estate cannot be destroyed.
Indestructibility
__________ is the fact that no two parcels of land are exactly the same.
Nonhomogeneity
aka Uniqueness
Nonhomogeneity is also known as __________.
Uniqueness
__________ is the location of a parcel of real property.
Situs
__________ is the fact land is subject to the laws in the jurisdiction in which it is located.
Law of Situs
__________ is the single most important characteristic of land.
Preference for certain locations
Situs
Three (3) Economic Characteristics of real property are:
- __________
- __________
- __________
- Scarcity
- Modification
- Fixity
__________ is the perceived supply of something relative to demand.
Scarcity
__________ is the fact land is immobile but improvements on the property can be constructed or removed.
Modification
__________ is the fact real property is considered to be a frozen or illiquid asset.
Fixity
Property rights that go with ownership of real property are referred to as the __________.
Bundle of Rights
Surface of the earth, below to the center, and above with all natural things is __________.
Land
Land plus man-made attachments is __________.
Real Estate
Real estate plus ownership rights is __________.
Real Property
Personal property is conveyed with a document called a __________.
Bill of Sale
Naturally growing plants are considered __________ property.
Real Property
Emblements are considered __________ property.
Personal Property
An item which was once personal property but is now real property is a __________.
Fixture
The process of attaching personal property to real property is __________.
Annexation (aka Attachment)
Ownership of trade fixtures depend on __________.
If they are removed prior to lease expiration.
__________ is not a factor in determining if an item is a fixture.
Cost
People’s preference for a certain area is called __________.
Situs
The document used to transfer real property is a __________.
Deed
What are the five tests of a fixture?
MARIA Method of Attachment Agreement Relationship Intent Adaptability
Local government gets their authority through legislation passed by the state called __________.
Enabling Acts
Police power is without __________.
Compensation
Regulation and control of the use of land is achieved through __________.
Zoning Ordinances
The right of the government to take private property for public good is __________.
Eminent Domain
The process by which property is taken for public good is __________.
Condemnation
When condemnation occurs, the property owner must be given __________.
Fair and Just Compensation
The term for someone dying without a will is __________.
Intestate
When an individual dies without a will and has heirs, his property is distributed according to the __________.
Laws of Descent
The process of verifying the validity of a will is called __________.
Probate
Which of the following would be considered personal property?
a. a treet
b. a bathtub
c. window blinds
d. harvested crops
D
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
An article may be changed from realty to personalty by:
a. annexation
b. severance
c. verbal declaration
d. order of the Commissioner
B
Which of the following is always personal property?
a. appurtenances
b. fixtures
c. trade fixtures
d. shrubbery
C
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
Real estate taxes are levied:
a. biannually
b. annually
c. semi-annually
d. in even numbered years
B
Ordinarily, first half property taxes are due and payable:
a. March 1
b. May 1
c. October 1
d. November 1
C
The word “ad valorem” best means:
a. the adding of value
b. an assessment
c. according to value
d. worth is assumed
C
Patents, trademarks, copyrights and royalties are an example of:
a. corporeal realty
b. tangible personalty
c. incorporeal realty
d. intangible personalty
D
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
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
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
When rights transfer with a deed, this is referred to as:
a. chattel real
b. reversionary rights
c. leasehold
d. bundle of rights
D
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
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
When are property taxes payable?
a. January
b. November and May
c. October and May
d. October and March
D
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
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
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
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
