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50 Cards in this Set
- Front
- Back
A lien is... |
A claim against property to secure a debt is called a... |
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Real estate taxes have _______ priority. |
_________ has first priority as lienholder. |
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Ad Valorum: |
"according to value" |
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Real estate is taxed according to... |
Value. (Ad Valorum) |
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Affidavit of value |
a document which shows the sales price. Required to record the deed upon transfer. |
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Full Cash Value (FCV) |
The Assessor's estimation of the value of your home (set low). |
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Limited Property Value (LPV) |
This is the value that taxes are based on. Aims to be equal to the FCV, but cannot increase more than 5% per year. |
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Tax Calculation Formula: |
LPV (limited property value) X Assessed Value Ratio (set by state law) = Assessed Value X Tax Rate (set by local gov) = Taxes |
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Tax liens begin to accrue on this day: |
January 1st |
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Tax liens are paid this way: |
semi-annually (2x per year) and in arrears (after accumulation) |
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Tax dates: |
Jan-June Due - Oct 1 Late - Nov 1 Jul-Dec Due - Mar 1 Late - May 1 |
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Assessed Value Ratio for Owner-Occupied Residential property |
10% AVR |
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Assessed Value Ratio for Residential income property (investment props) |
10% AVR |
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Assessed Value Ratio for Vacant Land |
15% AVR |
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Assessed Value Ratio for Commercial Property |
18% AVR |
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a mill = |
1/1000 |
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Delinquent taxes accrue interest at _____% |
16% per year |
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Treasurer's Sale |
The treasurer sells a delinquent tax lien at auction. |
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The winner at a Treasurer's Sale receives a: |
Treasurer's Certificate of Purchase |
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A Treasurer's Sale is followed by: |
3-year redemption period. |
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An owner may redeem after a Treasurer's Sale by: |
paying back all taxes to lienholder AND interest (at the rate specified on the Certificate of Purchase) |
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If, after 3 years, an owner does not redeem his tax liens, the lienholder may: |
1. Judicial Foreclosure or 2. Allow interest to accrue (do nothing) |
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If a tax lienholder decides to foreclose, they must... |
A tax lienholder must notify the owner by certified mail 30 days prior to... |
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A tax lienholder must begin a foreclosure within this amount of time: |
10 years |
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Mobile homes: real estate or not? |
Property if not affixed. Real Estate if affixed. |
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If a mobile home is affixed, the owner must... |
surrender the title and record an :affidavit of affixture" |
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Special Assessments are: |
liens taken against a property for public improvements (like sidewalks or street lights) |
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Special assessments have _______ priority amongst multiple liens. |
Second priority among liens goes to: |
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Assessments are usually divvied amongst residences/businesses according to: |
front footage (the number of feet that line the front of the property) helps to determine: |
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The interest rate of tax lienholders (after the Treasurer's Certificate of Purchase): |
16% or lower (sale goes to the person who bids the lowest interest) |
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The Treasurer's Sale takes place: |
February 19th of the year following the one in which the second half of taxes are due. i.e., taxes for 2016 are due in 10/2016 and 3/2017. Treasurer's Sale would take place 2/19/2018. |
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Mechanic's Lien is a ... |
An involuntary lien taken against a property for labor or material supplied. |
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When must a contractor deliver a preliminary lien notice to the property owner? |
A contractor must deliver a __________________ to a property owner within 20 days of commencement of work in order to have a mechanic's lien. |
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Who can record a mechanic's lien? |
Only a licensed contractor can record a ______________. |
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The mechanic's lien must be recorded within __________________ of the completion of work. |
_______________________ must be recorded within 120 days of the completion of work. |
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After recording, the mechanic's lien must begin to be foreclosed within ___________________. |
After recording, the _____________ must begin to be foreclosed within 180 days. |
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Priority of the mechanic's lien amongst other liens is determined by..... |
The date which work began determines...... |
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Can a mechanic's lien be taken against a lessee? |
Yes, but only against the lessee's interest. |
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A mechanic might only agree to perform work for a lessee if..... |
....if the lessee's interest has value over and above the cost of the project. |
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A mechanic's lien issued against a lessee has no claim against.... |
the property. (It sticks with the person) |
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HOA Liens have this option for foreclosure: |
Judicial foreclosure is the only option for: |
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What priority do HOA liens have? |
These sorts of liens are subordinate to all voluntary liens. |
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When might one get a Judgement Lien placed on their property? |
If a person is sued and has lost (and cannot or does not otherwise pay the debt). |
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The priority of judgement liens is determined by.... |
The date in which a judgement is recorded determines... |
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What percent interest will a judgement lien accrue at? |
This will accrue interest at the legal interest rate of the state, UNLESS it is stipulated otherwise. |
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Judgements could be revealed from (3 things) |
1. Title report 2. County Recorder's records 3. Credit reports. |
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What is a homestead exemption? |
This exempts a portion of a homeowner's equity from forced sale in the case of bankruptcy or unpaid judgements. |
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Homestead exemption does NOT apply in these circumstances: |
Foreclosure by mortgage, trust deed, or land contract property taxes, assessments, or mechanic's liens |
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The maximum home exemption in a homestead exemption is |
$150,000 equity (That is, if a property is worth $200k but you owe $170k, you are exempt. It's how much you can make off of the sale.) |
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A homestead exemption applies to ALL ________. |
Primary residences. |