Part 6 Flashcards
- Taxation
- Eminent domain
- Police power
- Escheat
Describe which four powers?
Four government controls on ownership
______________ 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
Taxes/Taxation
1 of 4 powers of government.
______________ is used in property taxation because it is levied in proportion to the value of the property to which the tax applies.
Ad valorem tax
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 is called what?
Special assessment.
Jillian is appraising Mark and Sarah’s soon-to-be purchased home so that they can finance through Action Mortgage. Mr. Fergison the seller, is still occupying the home and agreed to show Jillian around on the agreed upon inspection date. Mr. Fergison was more than eager to inform Jillian of everything he knew about the home from the oak flooring to the diameter and number of the trees in the established landscaping. He also told her about the new sidewalk which is scheduled to be constructed down the entire street a month after Mark and Sarah are to take possession of the home. He told her that the new buyers would have to pay for the cost of the concrete and the labor but that the results would definitely add value to the final appraisal. The city is currently bidding out estimates for the labor to reduce the costs. When appraising this dwelling Jillian must
take the pending special assessment into account as it could negatively impact the appraised value.
Local governments sometimes use special assessments to cover the costs of community improvements. The residents that benefit from the specific improvement, in this case, the houses gaining a sidewalk, are responsible for funding it. An appraiser must take into account all pending assessments because some of them may have an impact on the value.
A property sells between the time a special assessment becomes of record and the time it is actually levied, it is referred to as a
pending special assessment.
The right of government to take private property for public use upon the payment of just compensation is called what?
Eminent domain
This is the acquisition process of eminent domain. Typically, the government entity will offer to purchase the property from the owner. If the owner refuses the offer, the property is _____________.
condemned/condemnation
The inherent power of government to regulate property in order to protect public health, safety, and general welfare is called what?
Police power.
1 of 4 powers of government.
Comprehensive plans are
are future oriented.
A form of police power used to control growth and development.
Restrictions such as setbacks, density, and building height fall under what category of government control?
Zoning ordinances.
This is part of the government control identified within the broader area of police power.
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. This defines what?
Buffer strip (or buffer zone)
This is part of the government control identified within the broader area of police power.
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. This defines what?
Spot zoning.
This is part of the government control identified within the broader area of police power.
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. This defines what?
Zoning variance.
This is part of the government control identified within the broader area of police power.
- Building type
- Building height
- Building style/appearance
- Natural resources protection
- Permitted uses
- Setbacks
- Lot size
- Density
These are property features that can be regulated by what?
Zoning ordinances
This is part of the government control identified within the broader area of police power.
The right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs. This defines what?
Escheat.
This is part of the government control identified within the broader area of police power. The intent of escheat is to prevent real property from being abandoned with no owner in title.
The condition of dying without leaving a valid will. This defines what?
Intestate.
This is part of the government control identified within the broader area of police power.
One who dies leaving a valid will; the condition of dying with a valid will.
Testate.
This is part of the government control identified within the broader area of police power.
A charge against property in which the property is the security for payment of the debt. This define what?
A lien.
This type of lien is considered a specific lien. This type of lien can be placed on a parcel of real estate for delinquent property taxes or for the nonpayment of special assessments.
Government liens.
1 of 6 types of lien encumbrances that can limit ownership in real property
This type of lien is considered a specific liens. They can arise when someone provides labor, skill, equipment, or materials while improving, repairing, or maintaining the property and then doesn’t get paid.
Mechanics’ liens
1 of 6 types of lien encumbrances that can limit ownership in real property
This type of lien is considered a specific liens. This type of lien is created by a contract between the property owner and a lender. In this case, the owner (mortgagor) gives a lien against the property to the lender (mortgagee) to secure repayment of the loan.
Mortgage liens.
1 of 6 types of lien encumbrances that can limit ownership in real property
This type of lien typically result from a lawsuit in which a monetary judgment is awarded. The party that won the suit and was awarded the judgment is a judgment creditor. The party who lost the lawsuit is a judgment debitor
Judgement liens.
1 of 6 types of lien encumbrances that can limit ownership in real property
General liens is a type that binds all the assets of the individual debtor (that is, the debtor’s property) to the lien.
Specific liens is a type that is levied against or attaches to a specified piece of property.
These two categories describe what?
The two general categories. that liens fall into
Liens, generally follow the priority order based on when they were created (that is, first come, first served). However, there might be more liens than available funds to pay them. Certain liens are considered high priority and must be paid first. What is the lien priority in most cases?
- Property taxes
- Special assessments
- Mortgage liens
- Second mortgage, such as an equity loan
These type of lien-encumbrances are considered second mortgages and would come after a first mortgage on the priority list for repayment.
Equity loans
1 of 6 types of lien encumbrances that can limit ownership in real property
An ______________ is a lien that allows a creditor with an interest in an otherwise unsecured property to prevent the debtor from conveying title while the dispute is being decided in court. In this case, the creditor files a writ of attachment allowing the court to retain custody of the property until the suit is concluded.
An attachment
1 of 6 types of lien encumbrances that can limit ownership in real property
Last year, Ellen and Chris paid their property taxes late. On the day they went to the courthouse, they were informed that their bank, Eureka Savings and Loan, had already paid their taxes. The county collector suggested that they contact their bank. Why would the bank pay their taxes?
A government lien must be paid before a mortgage lien.
A judgment has been placed against Mark after he was found at fault for an accident resulting in severe damage to another car and the hospitalization of its driver. In this case, what type of lien is placed against Mark’s property?
A general lien because all assets of the debtor are affected in a judgment.
Mike recently made plans to knock down his dilapidated one-car garage and build a new two-car with a large attic for storage in its place. He went to the city to get a building permit and was turned down because his garage was too close to the property line. When it was originally constructed approximately fifty years ago, there was not a setback in place. He was told he could add onto the garage, but if he knocked it down he would have to move it twenty feet into his yard. Mike’s garage is currently
legally nonconforming because it conformed to the zoning at one time.
Bill and Brandy are cashing out on some of their home equity to cover the cost of sending their son to college. To maximize their borrowing potential, they hired Jeff to appraise their home. He informed them the appraised value of the property is $335,000. Luckily for them, this was more than enough to cover the cost of college tuition, but they were concerned because their assessed value is currently $375,000. The mill rate for their county is comparatively high. Which of the following best describes the cause for their concern?
The couple is probably paying too much ad valorem tax which is based on the assessed value and the mill rate.
The Federal Government receives a portion of the real estate taxes paid by the property owner.
False.
