Collector II Final exam

Question 1

Parties having the right to redeem a tax title lien certificate are:

Answer 1

OwnerHeirsHolder of a prior outstanding tax lien certificateMortgageeLegal Occupant of the Property sold at tax sale

Question 2

Upon redemption, the collector must deliver the actual certificate of sale, receipted for ______

Answer 2

cancellation

Question 3

Immediately upon receipt of redemption monies, the collector must ______ the holder of the Certificate / Certificates.

Answer 3

Notify

Question 4

Upon receipt of the endorsed tax sale certificate, the tax collector shall:

Answer 4

Refund money to the lien holder & forward certificate to Party who redeemed for cancellation

Question 5

Whether the certificate is held by the municipality, or by an outside holder, the amount required to redeem prior to the issuance of the certificate is the amount paid at the tax sale, plus ______ from the ______ ______ ______ at the redemption rate ______ at the sale.

Answer 5

InterestDate of SaleBid

Question 6

If the municipality has imposed fiscal restrictions upon the tax collector, whereby the collector does not have a redemption account, then refund amounts must be calculated to the date of the appropriate ______ ______ ______ ______ ______ ______.

Answer 6

Date of the governing body’s approval

Question 7

The Tax Collector must issue the tax title lien certificate within ______ ______ counting the date of the sale.

Answer 7

10 Days

Question 8

Redemption should always occur through the office of the ______ ______.

Answer 8

Tax Collector

Question 9

If redemption occurs after the issuance of a tax sale certificate, then the lien holder is entitled to a redemption penalty. The penalty only occurs if the certificate amount is more than ______. The amount of this penalty would be: ______

Answer 9

$200.2%, $200 - $4,9994%, $5,000 - $9,9996%, $10,000 and greater

Question 10

The lien holder is entitled to certain fees, however ______ must be filed with the tax collector for recovery of these costs.

Answer 10

Affidavits

Question 11

The maximum fee for a tax search reimbursement by a lien holder is ______

Answer 11

$12

Question 12

After March 28, 1991, the amount of the redemption penalty was changed to ______ if the total amount of the tax sale certificate was over ______, and to the rate of ______ if the certificate was over ______

Answer 12

4%$5,0006%$10,000

Question 13

If the tax collector has a redemption account, an can issue redemption checks upon payment from an interested party, a ______ is still required.

Answer 13

Resolution

Question 14

Abstract of title filed with the tax collector must cover a period of not less than ______.

Answer 14

20 Years

Question 15

Upon redemption of a municipally held lien, the interested party must pay all ______ with ______ at the rate chargeable by the municipality on all delinquencies.

Answer 15

Delinquencies Interest

Question 16

By means of a ______ ______ or a ______ ______ a municipality may authorize the redemption of a tax sale certificate through an installment payment plan.

Answer 16

Special ResolutionGeneral Resolution

Question 17

Provisions of an adopted installment redemption are:

Answer 17

Payments regularly & promptly paidSpecial form of receiptEqual monthly payments over 3 yearsAnnual Interest CompoundedAppropriate Statement of Privilege of redemption

Question 18

Final payment of an installment plan must be large enough to include all amounts due to the municipality and secured by the tax sale certificate, except the ______ ______ ______.

Answer 18

Current Year’s Taxes

Question 19

If the resolution requires that a special installment certificate be used, then the tax collector must keep a ______ ______ ______ ______.

Answer 19

duplicate of the certificate

Question 20

Amounts paid through an installment redemption plan must be credited against the property covered by the ______ ______ ______.

Answer 20

Tax Sale Certicate

Question 21

If an installment is not paid when due, or is not completed within the time fixed by the resolution, generally ______ ______, then the municipality is legally free to ______, ______ or ______ the unpaid balance of the lien.

Answer 21

30 DaysEnforceForecloseAssign

Question 22

The two methods of foreclosure are ______ and ______ ______ .

Answer 22

StrictIn Rem

Question 23

The ______ ______ has the statutory power to provide properties with ______ and marketable titles that may be sold and insured.

Answer 23

Superior CourtGood

Question 24

The ______ ______ also has the authority to:

Answer 24

Superior Court1. Bar Right of Redemption2. Foreclosure all interest in land3. Provide fee simple title

Question 25

An outside lien holder may institute an action to foreclose an time after ______ ______ from the date of sale.

Answer 25

2 Years

Question 26

A municipality may institute an action to foreclose any time after ______ ______ .

Answer 26

6 Months

Question 27

When a judgement is granted against unknown owners or claimants, notice must be made. The foreclosure notice made on this land must be posted ______ ______ ______ at least ______ ______ before the date of redemption.

Answer 27

On the Property20 Days

Question 28

The search prepared for unknown owners of the lands being foreclosed on is required to extend back ______ ______ prior to the date of the sale.

Answer 28

60 Years

Question 29

The "Notice of Intent" must be mailed to interested parties ______ ______ prior to filing of the complaint.

Answer 29

30 Days

Question 30

After the foreclosure filing has been made with the court, redemption can only be affected with approval of the court, call "______ ______ ______ ______".

Answer 30

In The Cause Only

Question 31

Except where a municipality is filing a foreclosure action, no final foreclosure judgment can be entered unless evidence is provided that all ______ ______ ______ have been paid to the time of the commencement of the action.

Answer 31

Subsequent Municipal Liens

Question 32

"IN REM" is from the Latin meaning:______ ______ ______

Answer 32

Against the Thing

Question 33

Specific requirements of the "IN REM" foreclosure are:

Answer 33

1. Must be 6 months fro date of sale2. Delinquency must be at least 21 months old (Continuous Unpaid Taxes)3. The certificate must be recorded4. Governing Body Authorizes the Action

Question 34

In order to proceed with the "IN REM" foreclosure, the governing body must adopt a ______ and a ______ ______ ______ must be prepared by the ______ ______ .

Answer 34

ResolutionTax Foreclosure ListTax Collector

Question 35

In Rem foreclosure proceedings may be also use by either the ______ or the ______ .

Answer 35

StateCounty

Question 36

Copies of the foreclosure complaint must be filed with the ______ ______, the ______ ______ , and the ______ ______ .

Answer 36

Tax CollectorCounty ClerkAttorney General

Question 37

Once and "IN REM" foreclosure has been instituted (in litigation) and the owner wishes to redeem, the municipality should provide:

Answer 37

1. Notice of dismissal2. Discharge of Lis Pendens3. Original Certificate

Question 38

Once judgment has been awarded on an In Rem foreclosure, upon recording the judgment, the plaintiff has "______ ______ " Title of the land.

Answer 38

Fee Simple

Question 39

Where a person becomes owner of a property by virtue of a faulty tax sale or defective tax foreclosure proceeding, the owner who purchased the faulty title must ______ ______ ______ ______ ______ ______ ______ ______ , for a sum equal to the amount paid to acquire the title plus interest at the rate of ______ .

Answer 39

Convey that Title to the Claimant of rights6%

Question 40

The owner, mortgagee or other party of interest may apply to ______ ______ or a ______ ______ to have a tax sale certificate cancelled, if he proves that the certificate holder has been paid all moneys expended by him/her plus interest as prescribed by law.

Answer 40

Superior CourtCounty Court

Question 41

When a certificate is cancelled of record at the county, it discharges the lands from the ______ , the ______ ______ , and the ______ ______ ______ ______ .

Answer 41

LienTax SaleCertificate of Tax Sale

Question 42

When a municipality becomes the owner of property for which it held a tax sale certificate and had not started foreclosure, it may by resolution, authorize execution of a certificate of cancellation. An example of why a municipality would go through this process is when an ______ ______ ______ ______ ______ ______ ______ .

Answer 42

Owner Donates the Land to the Municipality

Question 43

Sale of property acquired by municipalities at tax sales is more commonly referred to as "______" of tax sale certificates.

Answer 43

Assignment

Question 44

The two types of sales which a municipality may hold are known as ______ sales for the full amounts owned to a municipality, or ______ sales which may be for the full or lesser amount.

Answer 44

PrivatePublic

Question 45

The private sale method is done by council resolution selling the certificate to any person for the certificate of tax sale together with all ______ ______, ______ ______ ______

Answer 45

Subsequent ChargesTaxesLiens

Question 46

Although, the statutes make reference to a deed under the private sale method, it is really to the ______ ______ ______

Answer 46

Tax Sale Certificate

Question 47

The purchaser of the assigned certificate has all the same rights, as same as if the certificate was purchased at the tax sale from which the certificate originated. In addition, even if the certificate was issued prior to ______ , the purchaser is entitled to the ______ , ______ or ______ ______ .

Answer 47

March 28, 1991246% Penalty

Question 48

The governing body of a municipality, either on its own or jointly with other municipalities, may assign in bulk and accept partial consideration ______ , ______ , or other consideration as set forth in the authorizing resolution.

Answer 48

NotesBonds

Question 49

However, bulk sale of certificates must be approved by the ______ ______ ______ and must be ______ ______ and ______ ______ .

Answer 49

Local Finance BoardPublicly AdvertisedPublicly Bid

Question 50

Public Sale method of assignment is also authorized by resolution, but is similar to a tax sale whereby the successful assignment is sold to the ______ ______ .

Answer 50

Highest Bidder

Question 51

At public sale, acceptance of the bid is subject to actio of the ______ ______ .

Answer 51

Governing Body

Question 52

Under the public sale statute, the governing body agrees to assign the tax sale certificate for the amount of the certificate but not including the ______ ______ .

Answer 52

Subsequent Delinquencies

Question 53

Also, under the public sale method, the governing body may assign by resolution any certificate of tax sale it holds for ______ ______ the amount of the certificate.

Answer 53

Less Than

Question 54

Another method of assignment, which may be either public or private is known as the ______ ______ . Under this method of assignment, the municipality may sell the entire lien, certificate and subsequent municipal liens, except for the current year's unpaid taxes, to the highest bidder. These bids may be "discounted", which means they may be ______ ______ ______ ______. These bids are also subject to ______ ______ ______ ______ ______ .

Answer 54

Jone's ActLess than the AmountConfirmation of Governing Body

Question 55

The distinction under this act is that the purchaser must complete ______ and record the final judgment within ______ ______ of the confirmation of the sale date.

Answer 55

Foreclosure2 Years

Question 56

If the assigned purchaser does not complete this requirement before the time period has expired, the sale becomes ______ and the tax sale certificate ______ ______ ______ ______ and the purchaser is not entitled to ______ ______ .

Answer 56

VoidReverts to the MunicipalityAny Refund

Question 57

Under this statute, the purchaser receives a ______ assignment and the certificate is not ______ to the purchaser.

Answer 57

RestrictedSurrendered

Question 58

Only upon completion of foreclosure action, and final judgment has been recorded the tax collector is to ______ the original ______ ______ .

Answer 58

DeliverTax Certificate

Question 59

BULK SALE: A municipality may sell its ______ to a third party at public sale which may be done by ______ ______ or ______ ______

Answer 59

Total Property Tax LevySealed BidPublic Auction

Question 60

The municipality may set a minimum bid price which may be expressed in ______ or ______ or both an may include a premium or discount from the levy amount and may reject all bids if sale price is inadequate

Answer 60

DollarsPercent

Question 61

The contract may require the levy sale payment to be made ______ or in ______ ______ at the ______ ______ ______ ______ .

Answer 61

QuarterlyLump SumEnd of the Year

Question 62

If the tax levy is paid in ______ ______ they are due not earlier than ______ ______ or no later than ______ ______ after the quarterly due date.

Answer 62

Quarterly Installments10 Days30 Days

Question 63

Successful bidders shall be required to post a ______ or ______ ______ ______ ______ to secure payment.

Answer 63

BondIrrevocable Letter of Credit

Question 64

BULK SALE: The penalty interest provision must be included in ______ ______ .

Answer 64

The Contract

Question 65

Prepayment discounts by the levy purchaser ______ ______ .

Answer 65

Not Authorized

Question 66

Certification by the Tax Collector of delinquent taxes must be delivered to the levy purchaser within ______ ______ ______ following ______ ______ after the ______ ______ .

Answer 66

5 Business Days10 DaysDue Date

Question 67

Even though the levy is purchased and even if a tax sale certificate is issued to the levy purchaser, properties with unpaid taxes, assessments or municipal charges ______ ______ for the purposes of all aspects of ______ ______ ______ ______ or for ______ ______ ______ .

Answer 67

Remain DelinquentThe Tax Title Lien CertificateFiling an Appeal

Question 68

Levy purchasers receive only interest amounts attributable to properties in the sale and collected by the collector at rates normally charged by the municipality and excludes any ______ ______ collected by the collector prior to ______ ______ ______ ______ ______ .

Answer 68

Delinquent InterestWhen Levy payment is made

Question 69

In order to maintain proper internal control of levy sale transactions, collectors will have to maintain a ______ ______ to track tax payments and refunds from levy payments.

Answer 69

Subsidiary Ledger

Question 70

Rules related to advertisement and notice of a tax sale apply to all delinquent properties in order to give ______ ______ the opportunity to avoid ______ ______ ______ ______ ______ ______ ______ ______ which the levy purchaser is obligated to accept.

Answer 70

Property OwnersThe creation of lien and tax sale certificate

Question 71

On issuance of a tax sale certificate to the levy purchaser, the purchaser has right to foreclose ______ ______ ______ .

Answer 71

After 2 years

Question 72

If the levy purchaser fails to make the required payment within ______ ______ ______ from the time the collector's statement is received, the municipality may charge a penalty not to exceed ______ ______ ______ ______ ______ ______ ______ permitted by statute.

Answer 72

5 Business Days3 Times the Maximum rate of interest