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AZ Real Estate Agent License 2020 > Involuntary Liens and Homestead 18 > Flashcards

Involuntary Liens and Homestead 18 Flashcards

1
Q

Means “According to Value”

A

Ad Valorem -

Means according to value

Chap 18

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2
Q

A Claim Against Property to Secure a Debt; Money Encumbrance.

A

Lien -

A Claim Against Property to Secure a Debt; Money Encumbrance..

Chap 18

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3
Q

F___ C___ V____ (Ass_____ V____) -

  1. Establish (Jan 1st) - For Next Year,
  2. Owner Notified by Mail - of F__ C___ V___ and Assessed Value (LPV x AV Ratio)
A

Full Cash Value (FCV/Assessed Value) -

  1. Establish (Jan 1st) - For Next Year,
  2. Owner Notified by Mail** - of **Full Cash Value** and **Assessed Value (LPV x AV Ratio)

Chap 18

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4
Q

All Real Estate Taxes are Calculated on this Tax Basis.

  1. _____ Cannot Exceed FCV
  2. Any Increase - Limited to 5% of Previous Year’s ____
A

Limited Property Value (LPV) -

All Real Estate Taxes are Based on this Tax Basis.

  1. LPV Cannot Exceed FCV (Full Cash Value)
  2. Any Increase - Limited to 5% of Previous Year’s LPV

Chap 18

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5
Q

This is formula for what?

  • Limited Property Value
  • x Assessed Value Ratio
  • = What
A

Assessed Value Formula

  • Limited Property Value
  • x Assessed Value Ratio
  • = Assessed Value
    • Assessed Value Ratios are
  • 18% - Commercial (Class 1)
  • 15% - Vacant Land (Class 2)
  • 10% - Own Occupied Resiential (Class 3)
  • 10% - Residential Income (Class 4)
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6
Q

Assessed Value Ratio (Set by State) -

  1. Commercial (class 1) - ___%
  2. Vacant Land (class 2) - ___%
  3. Res/Own Occ (class 3) - ___%
  4. Res/Income Prop (class 4 ) - ___%
  5. Note: Class 4 - Files what?
A

Assessed Value Ratio (Set by State) -

  1. Commercial (class 1) - 18%
  2. Vacant Land (class 2) - 15%
  3. Res/Own Occ (class 3) - 10%
  4. Res/Income Prop (class 4 ) - 10%
  5. Note: Class 4 -

Files “Residential Rental Prop Registration form”

Chap 18

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7
Q

What is “Set by Local Government” as a Portion of Assessed Value?

Usually Stated as Amount per $100 of Assessed Value, also as mills (one thousandth per dollar = .001)

ex: $18 per $100 T___ R___ with limited value of $10,000

  • 18/100 = .18 or 180 mills/1000 =.18
  • 10,000 x .18 = $1800 Property Taxes
A

Tax Rate (set by local government) -

Usually Stated as Amount per $100 of Assessed Value, also as mills (one thousandth per dollar = .001)

ex: $18 per $100 Tax Rate with limited value of $10,000

  • 18/100 = .18 or 180 mills/1000 =.18
  • 10,000 x .18 = $1800 Property Taxes

Chap 18

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8
Q

What Type of Liens have 1st Priority Over All Other Liens.Subordanate LiensincludeForeclosure Cost,Special Assessments, Mechancs Liens, and HOA Assessments

A

Real Estate Tax Liens -

Have 1st priority over all other liens. Subordanate Liens include Foreclosure Cost, Special Assessments, Mechancs Liens, and HOA Assessments

Chap 18

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9
Q

D______ T___ S___ and F________

Once Property Taxes are Deliquent, a Treasurer’s Sale is conducted, and Owner is given a 3 Year Redemption Period. When No Redemption Takes Place, the Certificate of Puchase holder has Judicial Foreclosure where a Treasurer’s Deed is obtained.

A

Delinquent Tax Lien Sale and Foreclosure

Once Property Taxes are Deliquent, a Treasurer’s Sale is conducted, and Owner is given a 3 Year Redemption Period. When No Redemption Takes Place, the Certificate of Puchase holder has Judicial Foreclosure where a Treasurer’s Deed is obtained.

Chap 18

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10
Q

Tax Liens - If No Redemption in 3 years -

  1. If No Redemption -
  • Foreclose (Judicial) - Within ___ yrs from Cert of Purchase Issuance
  • Can Allow Interest to Accrue on Deliquent Taxes
  • Owner Notified - ___ Days “Before Judicial Foreclosure Action” by Certified Mail.
  • Treasurer’s Deed - Acquired at Judicial Foreclosure Action
A

Tax Liens - If No Redemption in 3 years -

  1. If No Redemption -
  • Foreclose (Judicial) - Within 10 yrs from Cert of Purchase Issuance
  • Can Allow Interest to Accrue on Deliquent Taxes
  • Owner Notified - 30 days “Before Judicial Foreclosure Action” by Certified Mail.
  • Treasurer’s Deed - Acquired at Judicial Foreclosure Action

Chap 18

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11
Q

If No Redemption (Tax Lien) - when can you foreclose?

Foreclosure (If No Redemption)

  • Judicial (Foreclosure Action) - Within ___yrs from Cert of Purchase Issuance
  • Owner - ___ Day Notice of Forclose Action (By Cert Mail)
  • Can Allow Interest to Accrue on deliquent taxes
A

If No Redemption (Tax Lien) - when can you foreclose?

Foreclosure (If No Redemption)

  • Judicial (Foreclosure Action) - Within 10 yrs from Cert of Purchase Issuance
  • Owner - 30 Day Notice of Forclose Action (By Cert Mail)
  • Can Allow Interest to Accrue on deliquent taxes

Chap 18

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12
Q

Upon Foreclosure of Tax Lien, is owner notified?

  1. If No Redemption -
  • Owner Notified - ____ Days “Before Foreclosure Action” by C_____ M___.
  • Treasurer’s Deed - Acquired at Judicial Foreclosure Action Given to Certicate Holder
A

Foreclosure of Tax Lien - Owner Notification

  1. If No Redemption -
  • Owner Notified - 30 days “Before Foreclosure Action” by Certified Mail.
  • Treasurer’s Deed - Acquired at Judicial Foreclosure Action Given to Certicate Holder

Chap 18

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13
Q

Delinquent Tax Lien

  1. Delinquent Tax Lien - Interest accrues at __% a year
A

Delinquent Tax Lien Sale and Foreclosure

  1. Delinquent Tax Lien - Interest accrues at 16% a year

Chap 18

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14
Q

During Redemption period (Tax Liens), What Must Owner Pay and To Whom?

  1. 3 yrs Redemption - Owner to Pay B_____ Due Plus I_______
  2. Paid to - C___ of Pur____ Holder
A

During Redemption Period (Tax Liens),

Owner Must Pay

  1. 3 yrs Redemption - Owner to Pay Balance Due Plus Interest
  2. Paid to - Certificate of Purchase Holder

Chap 18

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15
Q

C_________ Fac______ Dis_______

Special Taxing Districts formed to Finance (Through Bonds) the Aquisition, Construction, Operation, Maintenance of Public Infrastructures in Planned Community.

  • The Owner is Charged on Property Tax Bill
  • (Special Taxing for Public Planned Community Infrastructures):
A

Community Facilities District (CFD) -

Special Taxing Districts formed to Finance (Through Bonds) the Aquisition, Construction, Operation, Maintenance of Public Infrastructures in Planned Community.

  • The Owner is Charged on Property Tax Bill
  • (Special Taxing for Public Planned Community Infrastructures):

Chap 18

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16
Q

C_________ Fac______ Dis_______

Special Taxing Districts formed to Finance (Through Bonds) the Aq______, Con______, Oper______, Main______ of Public Infrastructures in Planned Community.

  • The Owner is Charged on Property Tax Bill
  • (Special Taxing for Public Planned Community Infrastructures):
A

Community Facilities District (CFD) -

Special Taxing Districts formed to Finance (Through Bonds) the Aquisition, Construction, Operation, Maintenance of Public Infrastructures in Planned Community.

  • The Owner is Charged on Property Tax Bill
  • (Special Taxing for Planned Community Infrastructures)

Chap 18

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17
Q

How are Taxes Paid (Prepaid or Arrears) and How Often?

  1. Jan-June (1st half) -
  • Due: _____
  • Late: _____ (30 days)
  1. July-Dec (2nd half) -
  • Due: _____ next year
  • Late: _____ (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

A

Taxes Paid in “Arrears” (Semi-Annually) -

  1. Jan-June (1st half) - Due: 10-01 current year
    * Late: 11-01 (30 days)
  2. July-Dec (2nd half) - Due: 03-01 next year
    * Late: 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

18
Q

1st Half of taxes (Jan-June) - Due Dates

  1. Jan-June (1st half) -
  • Due:
  • Late:

Hint: Owe No More Money (Oct, Nov, Mar, May)

A

1st Half of taxes (Jan-June) - Due Dates

  1. Jan-June (1st half) -
  • Due: 10-01
  • Late: 11-01 (30 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

19
Q

2nd Half of Taxes Due Dates:

  1. July-Dec (2nd half) -
  • Due (Next Yr):
  • Late (Next Yr):

Hint: Owe No More Money (Oct, Nov, Mar, May)

A

2nd Half of Taxes Due Dates:

  1. July-Dec (2nd half) -
  • Due (Next Yr): 03-01 next year
  • Late (Next Yr): 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

20
Q

Lien Against Property for Specific Public Improvements.

(Paving, sewers, sidewalks, etc)

A

Special Assessments Lien -

Lien Against Property for Specific Public Improvements. (Paving, Sewers, Sidewalks, etc). Levied on Front Footage Basis.

Chap 18

21
Q

What Type of Lien is for Labor or Material Supplied to Property?

  1. Licensed Contractor Only - Records Lien
  2. Lien Priority - Date Work Begins
A

Mechanic’s Lien -

Lien for “Labor or Materials” Supplied to Property.

  1. Licensed Contractor Only - Records Lien
  2. Lien Priority - Date Work Begins

Chap 18

22
Q

During the Mechanic’s Lien process…

Contractor/Material Supplier - What Must Be Delivered to Property Owner in 20 days of Work Start Date?

A

Mechanic’s Lien

  1. Preliminary Lien Notice - Contractor/Material Supplier Must Deliver to Property Owner in 20 days of Work Start Date.

Chap 18

23
Q

How Much Time Do You Have to Foreclose on - Mechanics Lien?

A

Foreclose on Mechanic’s Lien

  1. Foreclose in 6mos (180dys) - Foreclose from 6 mos (180dys) of Recording Lien.

Chap 18

24
Q

When must Mechanics Lien be filed upon completion of work?

A

Mechanic’s Lien

  1. Mechanic’s Lien - Record 120 days of Completion - both orig/sub-contractor must record

Chap 18

25
A Mechanic's **Lien Priority** is based on what?
**Mechanic's Lien - Lien Priority -** 1. **_Lien Priority_** - **Date work begins** **Chap 18**
26
If a Lessee orders work to be done in his apartment,the lien belongs to whom?
**Work order by Lessee of Apt -** 1. **_Lessee Work Order_** - Lien on Lessee. **Chap 18**
27
These items pertain to what type of lien? 1. **_Has Subordinate Status_** - to **First Mortgage, Deed of Trust, Agreement of Sales Liens** 2. **_Foreclose_** - If **unpaid over 1yr /$1200** or more due. 3. **_Foreclosure_** - Judicially
**HOA Assessment Liens -** 1. **_Has Subordinate Status_** - to **First Mortgage, Deed of Trust, Agreement of Sales Liens** 2. **_Foreclose_** - If **unpaid over 1yr /$1200** or more due. 3. **_Foreclosure_** - Judicially **Chap 18**
28
**These General Liens are called?** 1. **_Priority_** Established When Recorded 2. **_Renewed_** - **Every 10 years** 3. **_Writ of Execution_** - Levy/Attachment 4. **_Revealed by_**: * **Title Report** * **County Recorder's Records** * **Credit Report**
**Judgements (Court Ordered) General Liens -** 1. **_Priority_** Established When Recorded 2. **_Renewed_** - **Every 10 years** 3. **_Writ of Execution_** - Levy/Attachment 4. **_Revealed by_**: * **Title Report** * **County Recorder's Records** * **Credit Report** **Chap 18**
29
**General Liens also called?** **Claims placed by IRS or AZ Gov** on **All Property** **Both Real and Personal** 1. Priority Established when Recorded. 2. No Special Priority over Recorded Liens.
**Income - Tax Liens (General Liens) -** **Claims placed by IRS or AZ Gov** on **All Property** **Both** **Real and Personal** 1. Priority Established when Recorded. 2. No Special Priority Over Recorded Liens. **Chap 18**
30
**Exempts** **Portion** **of - Homeowner's Equity - from Attachment and Execution of a Forced Sale** **Due To** **(Non-Payment of Judgment).****Max $150,000 - Home, Condo, Mobile Home. In AZ Automatic-No Recording.** **No Forced Sale Protection -** 1. **Mortgage/Trust Deed** 2. **Land Contract** 3. **Property Taxes** 4. **Assessments** 5. **Mechanic's liens**
**Homestead Exemption** **Exempts** **Portion** **of - Homeowner's Equity - from Attachment and Execution of a Forced Sale Due To** **(Non-Payment of Judgment).****Max $150,000 - Home, Condo, Mobile Home. In AZ Automatic-No Recording.** **No Forced Sale Protection - (May Lord Protect All Matter)** 1. **Mortgage/Trust Deed** 2. **Land Contract** 3. **Property Taxes** 4. **Assessments** 5. **Mechanic's liens** **Chap 18**
31
What has **#1 priority over all liens**
**Real Estate Property Taxes** **#1 priority over all liens** **Chap 18**
32
**A Percentage of the Property's Fair Market Value - Set by State Law.**
**Assessed Value Ratios -** **A Percentage of the Property's Fair Market Value - Set by State Law.** * **_Commercial (Class 1)_** - 18% * **_Vacant (Class 2)_** - 15% * **_Res Own\_Occupied (Class 3)_** - 10% * **_Res Income (Class 4)_** - 10% * Res Rental Prop Registration (Assessors) **Chap 18**
33
**At this Sale, Treasurer holds Tax Lien Auction**"**_Live or Online_**" and **issues "Certificate of Purchase"** to **Highest Bidder**. **Owner has (3 year Redemption Period).**
**Treasurer's Sale -** **At this Sale, Treasurer holds Tax Lien Auction**"**_Live or Online_**" and **issues "Certificate of Purchase"** to **Highest Bidder**. **Owner has (3 Year Redemption Period).** **Chap 18**
34
**C\_\_\_\_\_\_\_ of P\_\_\_\_\_\_\_ -** **Received by Highest Bidder at** Tax Lien Auctions **(Treasurer's Sale).**
**Certificate of Purchase -** **Received by Highest Bidder at** Tax Lien Auctions **(Treasurer's Sale).** **Chap 18**
35
**If No Redemption After 3 year Redemption Period, then A Judicial Foreclosure Action can Take Place Where the Certifcate of Purchase Holder will Obtain Title** **How is Title Conveyed to** **Certifcate of Purchase Holder?**
**Treasurer's Deed -** **If No Redemption After 3 year Redemption Period, then A Judicial Foreclosure Action can Take Place Where the Certifcate of Purchase Holder will Obtain Title** **Chap 18**
36
**On Deliquent Tax Liens that Have Gone to Auction (Treasurer's Sale),** **What Is the Redemption Period?**
**3 Year Redemption Period -** **After Treasurer's Sale and the Cert of Purchase is issued to highest bidder. Owner has 3 years to Redeem by Paying All Due Plus Interest on Rate stated on Certificate to Owner Holder of Certificate** **Chap 18**
37
**LPV (LImited Prop Value)** **May Not Increase More that \_\_\_% Annually.**
**LPV (LImited Prop Value) -** **Maximum Increase Per year is 5%** **Chap 18**
38
**To Record a Deed, What is Also Needed that Shows Sales Price Is Called**
**Affidavit of Value -** **Shows Sales Price, and Must be Recorded With Deed** **Chap 18**
39
**If Owners Full Cash Value is Too High - Appeal Too?** **_Owners (FCV to High) - Appeals_**: - **the A\_\_\_\_\_\_\_\_; then S\_\_\_Board of E\_\_\_\_\_\_ (SBOE); then T\_\_ C\_\_\_\_\_\_** **_New Constructions FCV (Mailed in Sept):_** 1. **_"Supplemental Notice of Value"_** - to **Owner in Sept** 2. **_Owner - Appeal_ - In __ Days - to S\_\_\_\_ Board of E\_\_\_\_\_\_ (SBOE)** 3. **_May Be Revalued_ - As (Partial Complete)**
**Full Cash Value Appeals Process (25)**- **_Owners (FCV to High) - Appeals_**: -***Assessor***, then ***State Board of Equalization (SBOE)***; then ***Tax Court*** **_New Constructions FCV (Mailed in Sept):_** 1. **_"Supplemental Notice of Value"_** - to **Owner in Sept** 2. **_Owner - Appeal_** - in ***25 days*** - to ***State Board of Equalization (SBOE)*** 3. **_May Be Revalued_** - **As (Partial Complete)** **Chap 18**
40
**These are due dates for what?** 1. _**Jan-June** **(1st half)**_ **- Due: 10-01** 1. **Late: 11-01 (30 days)** 2. _**July-Dec** **(2nd half)**_ **- Due: 03-01 next year** 1. **Late: 05-01 (60 days)** **Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Property Taxes - paid in arrears (semi-annually) -** 1. _**Jan-June** **(1st half)**_ **- Due: 10-01** 1. **Late: 11-01 (30 days)** 2. _**July-Dec** **(2nd half)**_ **- Due: 03-01 next year** 1. **Late: 05-01 (60 days)** **Hint: Owe No More Money (Oct, Nov, Mar, May)** **Chap 18**

AZ Real Estate Agent License 2020 (23 decks)

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