Real Estate Law Chapter 17 (TAXES)

The first installment of real property taxes is delinquent on: A) March 10 B) April 10 C) November 10 D) December 10

(D)

(T/F) When the property is declared "tax delinquent" for nonpayment of taxes, the owner is no longer permitted to live on the property.

False

If property taxes are not paid when due, they become a ____ on real property. If the taxes remain unpaid, the property can ultimately be foreclosed and sold at a tax sale.

Lien

Which of the following results in a reassessment of all or part of the real property? A) Adding a new room to the house B) Death of wife, holding as joint tenants with husband C) Transfer of husband's separate property to wife D) All of the above

(A) A new room causes reassessment of that room. All transfers between spouses are exempt from reassessments

The amount of the Veteran's exemption for real property taxes is: A) $40 off tax bill B) $70 off tax bill C) $1000 off assessed value D) 10% of tax bill

(A) Note: $150 if veteran is disabled

The amount of the Homeowner's exemption for real property taxes is: A) $40 off tax bill B) $70 off tax bill C) $1,750 of assessed value D) 10% of tax bill

(B)

Real property taxes are due: A) Once a year, April 15th B) Once a year, December 31st C) Twice a year D) In monthly installments

(C)

In 1994, assume you both a home for $350,000. Assume you qualify for a homeowner's exemption. Your first year's real property taxes would be: A) $3,500 B) $8,000 C) $3,430 D) $7,930

(C) 1% of $350,000 is $3,500 = your first years gross tax $3,500 - $70 (homeowners exemption) = $3,430

Which of the following would not result in a reassessment of all or part of the real property involved in the following transfer? A) Brothers holding as joint tenants changing to tenants in common B) Father transferring from self to self and son as joint tenants C) Transfer from self to revocable trust with you as sole beneficiary D) None of the above causes a reassessment

(D)

Assume you bought a house in 1991 for $200,000, and made no improvements or changes in ownership since then. In 1994, you real property taxes (without any homeowner's exemption) would be: A) $206,000 B) $208,000 C) $212,000 D) $212,242

(D) 2% increase per year

After property is marked "tax delinquent property" for unpaid taxes: A) A homeowner loses possession of the property B) Property must be auctioned to the highest bidder within one year C) Deed must be promptly executed to the state D) None of the above

(D) It starts the 5 year period for redemption running

Which of the following pays no real property tax of any amount? A) Church building B) Public High School C) City Hospital D) All of the above

(D) exempt under normal nonprofit operations

(T/F) When a husband and wife transfer title by deed between themselves from joint tenancy to community property, reappraisal of the property is required.

False Exempts inter-spousal transfers

(T/F) The first installment of real estate property taxes is due November 10.

False Nov. 1st

(T/F) The homeowner's exemption is $1,750 off the total taxes otherwise due on the property.

False Old law: $1,750 New Law: $70 less tax

(T/F) If the installments are not paid when due, they become a lien against the property on January 1st immediately preceding the fiscal year for which they are levied.

True

(T/F) Property taxes are the most important source of revenue for local government

True

(T/F) Real Estate taxes are payable in two installments, due on Nov. 1st and February 1st, although the entire tax may be paid when the first installment is due

True

(T/F) Under the new law, taxes generally may not exceed 1% of the property's value carried on the assessor's rolls.

True But assessor's value often has no relation to true fair market value

(T/F) The Foreclosure of a tax lien extinguishes any deeds of trust on the property.

True Foreclosed senior lien cuts off junior

(T/F) If the second installment of taxes is not paid by April 10, 1979, the taxes become a lien as of March 1, 1978

True Lien March 1st preceding tax year

(T/F) The new law eliminated the concept of assessed value as 25% of property's fair market value.

True No longer use 25% of fair market value

(T/F) the property is deeded to the state only after the owner's five-year redemption period has expired.

True Tax deeded to state at end of five years

(T/F) A tax lien created in 1978 takes priority over a mortgage executed in 1952.

True Tax liens superior to private liens