Involuntary Liens and Homestead 18 Flashcards Preview

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Flashcards in Involuntary Liens and Homestead 18 Deck (40)
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1

Means "According to Value"

Ad Valorem -

Means according to value

Chap 18

2

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

Lien -

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

Chap 18

 

3

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)

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

4

All Real Estate Taxes are Calculated on this Tax Basis.

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

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

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5

This is formula for what?

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

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)

6

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?

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

 

7

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

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

8

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

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

9

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.

 

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

 

10

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

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

 

11

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

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

 

12

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

 

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

 

13

Delinquent Tax Lien

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

 

 

Delinquent Tax Lien Sale and Foreclosure

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

Chap 18

 

14

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 toC___ of Pur____ Holder

During Redemption Period (Tax Liens),

Owner Must Pay

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

Chap 18

 

15

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):

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

16

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):

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

17

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)

Taxes Paid in "Arrears" (Semi-Annually) -

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

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

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

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

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

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)

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

Lien Against Property for Specific Public Improvements.

(Paving, sewers, sidewalks, etc)

Special Assessments Lien -

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

Chap 18

21

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

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

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

During the Mechanic's Lien process...

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

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

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

Foreclose on Mechanic's Lien

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

Chap 18

24

When must Mechanics Lien be filed upon completion of work?

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