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73 Cards in this Set
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Ad Valorem |
Property tax assessment system utilized by cities and towns to determine assessed value for property tax purposes. |
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Appurtenance |
Is a right that accompanies a property. An example would be a right of way through a neighbor's property. |
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Assessed valuation |
It is the value given to real property by the town Assessor's office. Ad valorem- assessment for property tax purposes. Property is assessed annually by the city or town according to Value. The assessed value is not the actual value of the property. Many times buyers confused assess value - tax value and appraised value - actual value. An assessor determines the assessed value |
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Attachment |
When a property is legally seized to enforce the payment a debt. |
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Betterment assessments |
Improvement conducted by the town such as sewer lines. Sometimes private owners must pay for these betterments in addition to their property taxes. Payments can be spread over time with the owners pain interest as well as betterment charge. |
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Building codes |
Regulations established by cities and towns that enforce structural requirements and procedures. This is referred to as police power. |
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CC&R |
Conditions , covenants and restrictions. |
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Condemnation |
The process of making a property by law of eminent domain. Note does not me condemned. |
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Conditional use |
When the town allows you to use a property inconsistent with the zoning. |
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Covenant |
A condition that exists in a deep. Maybe a restriction in a deed. |
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Defeasible estate |
If a seller place a restriction on the buyers ownership and the buyer violates this restriction The Grand Tour or their heirs could reclaim the property. This restriction runs with the land. |
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Deed of trust - trust deed |
Utilize in California, it replaces a mortgage use instead of a mortgage deed. |
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Dominant tenement |
This is the owner of the property who has the right to cross a lot of another owner when there is an easement. |
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Easement |
The right that someone has in the land of another. Runs with the land. |
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Easement appurtenant |
Two adjoining Lots that gives one owner the right to cross over the adjoining lot. |
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Easement by prescription |
Easement that can be created when one party uses property that belongs to another. The property opening, continuously and notoriously for 20 years. |
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Easement in Gross |
The owner of a parcel of property gift someone else the right to use their property for a specific period Of time. This work is not transferable, it is exclusive permission. Note if that's the case give them a ticket to use the property. |
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Egress |
Access out. |
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Eminent domain |
This is the right that the government has to take private land for public good. This is a law, condemnation is the process. Government must pay a fair price for the property. |
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Encroachment |
This is when a neighboring property is intruded on the subject property. Could be trees, driveways, fences or a building that protrudes over the property line. Note to find where the property line begins and end have a survey be done. |
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Encumbrances |
a lien against the title - outstanding loan balance. |
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Environmental requirements |
Ordinance enact to protect land, lake, rivers, ocean, Marshland and wetland. Purpose is to prevent illegal dumping of hazardous waste on natural resources. |
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Equitable Title |
The interest accrued by the buyer and the buyer and seller enters into a purchase and sale contract. Buyer loan as vendee and has Equitable Title to the property. The right to possession and use. They acquire legal title to the property when they complete any predetermined payment. Equitable Title to a property is acquired by the buyer when the buyer and seller enters into a purchase and sales ( sales contract ) The document purchase and sell encumbers the sellers bundle of rights to the property - places limitations on the cellar - can't sell to someone else. |
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Escheat |
The right that the state has to take property if or when someone dies without a will and did not have any heirs. |
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Installment sales contract |
Known also as a land contract, contract for Deed or conditional sale contract. This when a seller conveys a property to another what holds the title until fire satisfied the payment schedule. The encumbered their bundle of Rights by conveying their possession to the property. |
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Involuntary lien |
A lien issued against a property not of the property owners undertaking example property tax. |
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Ingress |
An entrance upward. |
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Legal title |
A buyer receives legal title to the property when they received and accept the deed conveying the property to them. (Seller known as vendor) And maintains legal title to the property until Financial Obligations of. Repayment of the loan. Also legal title to a property is acquired by the buyer when the deed is delivered to the body . [ passung of paper]. |
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License |
Permission to use the property for another. It can be revoked at any time. It does not involve a lease. |
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Lis pendens |
A notice recorded at the registry of deeds indicating that there is impending action regarding the title to the property. |
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Mechanics lien |
A lien placed against the property by a contract, subcontractor or materials person do to fail to pay for services. |
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Money encumbrance |
A lien against a property ; mortgages, installment contracts. |
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Mortgage |
The borrower gives a mortgage to the lender when they pledged their property as collateral to secure a loan. Mortgage is also known as deed of trust. Note - this is a document given to the lender by the borrower. It is a promise to repay the loan and IOU. This is the primary instrument in a mortgage transaction. |
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Municipal Taxes |
1st and Paramount to the priority of liens. Property taxes issued by a city or town. |
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Non - conforming use |
A property that does not comply with current zoning requirements but did comply before the zoning changed. The property is considered grandfathered in. |
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Non - money encumbrance |
Physical restrictions against the property such as and encroachment or easement. |
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Party wall |
A wall or boundary located between two properties that is intended to be used by both parties. An example would be connected townhouses. |
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Police power |
Building codes, zoning and licensing law an enacted to protect the public interest. Enforced by local government. |
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Priority of liens |
The order which liens are recorded at the registry of deeds. Taxes are always first. Liens are paid in the order they are recorded. The first loan will usually have a clause that indicates other liens are subordinate to them. |
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Private restrictions |
Covenants recorded in a subdivision. Restrictions that run with the land. Recorded by developer. |
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Public restrictions |
Restrictions placed by the government to promote Health, welfare and Public Safety of a community. Known as a police power. |
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Recording |
Constructive notice. A feeling of a document such as mortgage or a deed at the registry of deeds. |
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Servient tenement |
This is the owner of the property whose land is a burden. The burden is known as an encumbrance. |
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Setback |
A distance that must be maintained from neighboring properties in order to build. |
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Special assessments |
An assessment or charge levied by a Condominium Association or town for improvement or enhancement to a condominium or somebody's particular home. |
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Specific lien |
A lien placed against a specific parcel of Real Estate. |
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Statutory lien |
A lien that is created by law or statute. example unpaid taxes. |
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Tax rate |
The tax rate charges buy a city or town. |
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Variance |
Permission from a town or city to utilize a property in exception to the current zoning regulations. Usually there is a hearing process to Grant exception. |
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Voluntary lien |
A lien against a property created by the voluntary actions of the borrower such as a loan to purchase property. An example would be mortgages an installment sales contract are voluntary |
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Zoning ordinance |
An ordinance or guideline implemented by a city or town to regulate the use of specific properties regarding land use, building size, lot size, height requirements and distance from property lines. |
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Mortgage |
A document given by the buyer to secure the property as collateral for the loan which is recorded at the registry of deeds. This document encumbers the title to the new owner of the property. It limits their ability to sell without repaying the loan. |
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Note |
This is a document given to the lender by the borrower. It is a promise to repay the loan, and IOU. This is the primary instrument in a mortgage transaction. |
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Equitable Title (encumbrances) |
Equitable Title to a property is acquired by the buyer when the buyer and seller in turns into a purchase and sale.( sales contract). The document (P&S) encumbers the sellers bundle of rights to their property - places limitations on the sellers / they can't sell to someone else. |
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Legal title |
Legal title to the property is acquired by the buyer when the deed is delivered to the buyer. Passing of papers. |
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The fault of financial obligation |
The buyer is su's possession by an agreement to complete a predetermined payment schedule. If the buyer defaults on the payment schedule they lose their Equitable Title to the property in the equity that they paid to date. The former seller me games possession of the property and keeps payments made. Think of the Repo Man. |
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Property taxes (Municipal Taxes) |
1st and Paramount in the priority of liens. Unpaid taxes are paid before any other encumbrances. Taxes are paid before the outstanding loan on the property. |
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Priority/ hierarchy of liens |
1. Priority taxes / Municipal betterment charges 2. mortgage - first lien on the property 3. Junior mortgages - 2nd mortgage / equity line paid by order of recording. 4. mechanic's liens |
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Determining tax rate |
Real property is assessed annually. The tax rate is determined by dividing the annual budget of the city/ town by the total assessed value of the taxable property within that city or town. The total value of the property within the town is referred to as the tax base to figure the tax rate. Town budget / the value of the taxable property in the town equals the tax rate. The tax rate could express her thousand, four hundred or $4 of value. Massachusetts expression taxes per $1,000. Taxes could be expressed in Mills. (Dollar per thousand or a mill is 1/10 of a cent). |
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How to determine tax rate |
Tax budget / value of taxable property in the town equals the tax rate. The tax rate can be expressed per thousand, four hundred or per dollar of value. In Massachusetts it is expressed thousand dollars. |
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How to find individual property tax |
Multiplying the individual assessment of the property- assessed value By the rate of the city or town ex assessed value of property X $300,000.00 Divided by $1,000 =300 300 is the value divided dollar per 1K Times $20.00 (tax rate)= $6,000 (tax due) Taxes are due annually but maybe semi-annually or paid quarterly. |
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Limitation of ownership |
Police power, eminent domain, taxes, escheat |
Pete |
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Types of encumbrances that exist |
Physical restrictions, Financial liens, or money encumbrances and non money incumbrances encumbrances are lean against the title outstanding loan balances. Encroachment, amusement, and restrictions. |
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What is an example which encumbrance is voluntary |
Mortgage and installment sale contract are voluntary liens |
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A futuristic interest |
Is when seller and buyer enters into a sale contract, the buyer holds a futuristic interest. |
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A deed of trust |
Is another term that can be used to describe a mortgage. |
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What is included in a installment sales contract |
Land contract, contract for purchase, conditional sale contract. |
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When does property taxes become a lien against a property |
July 1st |
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when referring to mill rate |
Per $1.00 |
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When a property owner seeks to utilize our property and consistent with current zoning regulations, they seek a |
Variance |
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What's an installment sales contract, the buyer is known as the |
Vendee |
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Lis Pendens |
You notice filed at the registry of deeds that place is on record constructive notice of a lawsuit |
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An Attachment |
Seizure of the property via a Court action. |
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