Module 6 Vocab

Question 1

_____ is used in property taxation because it is levied in
proportion to the value of the property to which the tax applies. Property taxes have their origin in the fiscal budget for each level of government. Revenue (other than taxation) is estimated and paired against anticipated expenses. The difference is assessed in a tax levy against the properties within the taxing district.

Answer 1

Ad valorem tax

Question 2

Open spaces, landscaped areas, fences, walls, berms, or any combination thereof used to physically separate
or screen one use or property from another so as to visually shield or block noise, lights, or other nuisances; often associated with a change of land use or density.

Answer 2

buffer strip (or buffer zone)

Question 3

The acquisition process of eminent domain is called ____

Answer 3

condemnation

Note:
Typically, the government entity will offer to purchase the property from the owner. If the owner refuses the offer, the property is condemned

Question 4

One of the 4 Government controls on ownership. ____ is the right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs.

Answer 4

escheat

Question 5

The condition of dying without leaving a valid will.

Answer 5

intestate

Question 6

Liens have a certain order in how they are satisfied or paid off. Generally, they follow the ____ order based on when they were created (that is, first come, first served) with some exceptions.

Answer 6

lien priority

Notes: Liens such as property taxes and special assessments fall into the high priority category. Even so, property tax liens are paid before special assessments liens.

-Mortgage liens are not high priority liens. That is why lenders insist on a clear title before a mortgage is received from a borrower so the loan becomes the first lien of record. The lien would still come after any property tax and special assessment liens. A second mortgage, such as an equity loan, would come after a first mortgage on the priority list.

Question 7

____ is a type of encumbrance that can arise when someone provides labor, skill, equipment, or materials while improving, repairing, or maintaining the property.

Answer 7

mechanics’ lien

a. The list of “mechanics” that potentially can file this type of lien include contractors, subcontractors, and suppliers of building materials, as well as skilled professionals such as engineers, architects, and surveyors to
name a few.

b. Most states require the contractor to provide a written notice to the property owner that a lien could be enforced against the property if the person providing the services or materials is not paid

Question 8

____ are voluntary and one of the most common types of liens. They are created by a contract between the property owner and a lender.

Answer 8

mortgage lien

Note: In this case, the owner (mortgagor) gives a lien against the property to the lender (mortgagee) to secure repayment of the loan

Question 9

One of the 4 Government controls on ownership: ___ is the inherent power of government to regulate property in order to protect public health, safety, and general welfare.

Answer 9

police power

Police power is really the government’s power to control or regulate real property in the public’s interest. Since no private rights are taken, police power is distinct from eminent domain, although that very issue is sometimes debated in the courts in cases involving zoning regulations

Question 10

An assessment against real property levied by a
public authority to pay for public improvements, e.g., sidewalks, street improvements, sewers; also called betterment tax.

Answer 10

special assessment

Question 11

An exception to the general zoning regulations; permits specific, usually small, parcels of land to be zoned for a use that is not permitted in the surrounding area

Answer 11

spot zoning

Question 12

One of the 4 Government controls on ownership: ___ is the right of government to raise revenue through assessments on valuable goods, products, and rights.

Answer 12

taxation

Note: The U.S. Constitution precludes the federal government from taxing real property directly, reserving that right instead for state and local governments.

a. Taxes are levied against real estate to support the
operation and services of government at various levels.
These can include:
- State government
- County government
- Public school districts
- Municipal government

Question 13

The condition of dying with a valid will

Answer 13

testate

Question 14

____ are local laws that implement the comprehensive

plan and provide regulation and control of land and structures within a specified district.

Answer 14

zoning ordinance

Police Power in Action using Zoning Ordinances:

• Building type
• Building height
• Building Style/Appearance
• natural resources protection
• permitted uses
• setbacks
• lot size
• density

Question 15

A legally authorized modification in the use of property at a particular location that does not conform to the
regulated use set forth in the zoning ordinance for the surrounding area; not an exception or change in the legally applicable zoning.

Answer 15

zoning variance

Question 16

A use that was lawfully established and maintained, but no longer conforms to the use regulations of its
current zoning; also known as a grandfathered use.

Answer 16

legally nonconforming

Question 17

One of the 4 Government controls on ownership: ___ Is the right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the US Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property.

Answer 17

Eminent domain