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Acre
A land measure equal to 43,560 square feet.
Acreage
Units used to measure the size of a property.
Ad Valorem Tax
Tax levied based on the value of an item. Property tax is an ad valorem tax,
which is based on the assessed value of the property.
Ad Valorem Taxation
According to the value of the property.
Adjusted Sale Price
The sale price adjusted, as necessary, for the differences between the
comparable and subject properties.
Age/Life
A method of estimating accrued depreciation based on the age of the property
and its economic life. Another term is straight line depreciation.
Air Conditioning type
The primary cooling source for the residence.
Amenity
A tangible or intangible benefit of real property that enhances its
attractiveness or increases the satisfaction of the user, but is not essential
to its use. Natural amenities may include a pleasant location near water or a
scenic view of the surrounding area; man-made amenities include swimming pools,
tennis courts, community buildings, and other recreational facilities.
APN
A numeric system for referring to each parcel of property within the county.
(Composed of map books, pages, blocks and parcels.) Also referred to as
Assessor's Parcel Number.
Appraisal
The act or process of estimating value; an estimate of value. An analysis,
opinion, or conclusion relating to the nature, quality, value, or utility of
specified interests in, or aspects of, identified real estate.
Appraisal Date
The moment in time for which a valuation is prepared. The date as of which an
appraisal is made.
Appraised Value
A professional estimate of the actual value of a property.
Appreciation
An increase in property value, from all causes.
Approaches to Value
Systematic procedures used to derive value indications in real property
appraisal. (See also- cost approach, income capitalization approach, sales
comparison approach).
Appurtenance
Something that has been added or appended to a property and has since become
an inherent part of the property. Usually passed with property when title is
transferred.
Arm's-Length Sale
A sale between two unrelated parties, each of whom is reasonably knowledgeable
of market conditions and under no undue pressure to buy or sell.
Assessed Value
The monetary amount which a property is entered on the assessment roll for
purposes of computing the tax levy. Assessed value equals full cash value
multiplied by the assessment ratio.May be higher or lower than market value, or
based on an assessment ratio that is a percentage of market value.
Assessment Date
The status date for tax purposes. Appraised values reflect the status of the
property and any partially completed construction as of this date.
Assessment Level
The common or overall ratio of assessed values to market values.
Assessment Roll
The official list of all property within the County assessed by the Assessor.
Assessor
The head of an assessment jurisdiction, which may be an elected or appointed
position.
Assessor Parcel Map
Assessor parcel maps reflect the legal boundaries and dimensions of each
parcel, and serve as the basis for land value assessments.
Attribute
Characteristic of a property.
Base Line
A principle east-west line in the rectangular land survey system.
Base-Lot Method
A method of appraising land parcels whereby each parcel to be appraised is
compared with a parcel of known value, called the base lot.
Board of Equalization
A nonjudicial board that reviews assessments to see that all districts are
assessed at a uniform level of value; authorized to raise or lower the
assessments to achieve a uniform basis of taxation.
Building Improvements
Usually means the betterment of real property by the addition of a
structure(s) or the addition of additional capacity to an existing structure.
Bundle of Right
The six basic rights associated with the private ownership of property; the
right to use real estate, to sell it, to rent or lease it, to enter or leave,
to give away, and/or to refuse to do any of these rights.
Business Description
A general classification specifying the type of trade a business is engaged
in, such as manufacturing, retailer, wholesaler, or professional services.
Business
Business personal property is assessable, and includes computers, supplies,
office furniture and equipment, tooling, machinery and equipment. Most business
inventory is exempt. (See personal property).
C.C.& R's
Abbreviation for declaration of conditions, covenants and restrictions
document. A legal document typically recorded by the subdivision developer
concurrently with the subdivision plat map. Lists the express assurance and
limitation on land binding on all current and subsequent owners.
Cadastral Map
A map displaying property ownership boundaries, dimensions, and other useful
information, such as parcel identification numbers.
Capitalization Rate
The ratio between net income and value. The current value of a property can be
estimated by dividing its current or stabilized net income by the appropriate
capitalization rate.
Capitalized Leased Equipment
Items of equipment whose acquisition was funded on a lease contract, and the
title of which will go to the purchaser with the final payment.
Cash Flow
Rental income remaining after deducting for operating expenses and debt
service.
Casual Use Property
Common area property with a minimum of facilities used exclusively by project
residents, their families and invited guests without restriction, subject to
rules as established by the homeowner organization board of director, and at no
additional cost or fee. No commercial uses or paid staff to coordinate
activities are present in this type property. A professional management company
or other services may be hired to maintain and repair said property.
Change
The tendency of the social and economic forces affecting supply and demand to
alter over time, thus influencing market value.
Coefficient of Dispersion
A statistical measure of assessment uniformity for a category of property or
for all property within a taxing jurisdiction. Also referred to as C.O.D.
Combination
When two or more parcels are combined into one parcel.
Common Area
Land and improvements within a lot, parcel, or area for the beneficial use and
enjoyment of all owners. The common area may be held by owners of lots or
residential units as an undivided interest, owned in its entirety by a
homeowners' association, or a combination of both.
Comparables
A shortened term for similar property sales, rentals, or operating expenses
used for comparison in the valuation process; also called "comps".
Comparative Unit Method
(1) The most widely used method of cost estimating. Direct and indirect costs
are summed and divided by an appropriate unit to derive a cost per unit. (2) A
method of appraising land parcels in which an average or typical value is
estimated for each stratum of land.
Complex
In real estate, a group of buildings, site improvements, and support
facilities designed to carry out related activities in a single location; e.g.,
apartment complex, office complex.
Condominium
Ownership is mandated by statue and requires publication of a declaration
creating the condominium (sometimes called a horizontal property regime). Fee
tile to a condominium provides the owner with horizontal and vertical space as
well as an undivided interest in other appurtenance, such as land, recreation
facilities, exterior walls, roof, elevators and basements. Known as common
elements. There are several types of condominiums: high-rise, walk-up, garden
type, and commercial use. 1. A form of fee ownership of separate units or
portions of multi-unit buildings that provides for formal filing and recording
of a divided interest in real property; 2. A multi-unit structure or property
in which persons hold fee simple title to individual units and an undivided
interest in common areas.
Conformity
The value of a property depends in part on its relationship to its
surroundings. Value is created and sustained when the characteristics of a
property conform to the demands of its market.
Consistent Use
The concept that land cannot be valued on the basis of one use, while the
improvements are valued on the basis of another.
Contract for Deed
A contract for sale in which the seller retains title until the buyer
completes the contracted payments for the property. The sale is not recorded
until title passes to the buyer. (See also Land Contract).
Contract Rent
The actual amount of rent, per unit of time, that is specified in the lease.
Contribution
Principle of value which states that total value may not equal the total cost
of the individual parts. For example, adding a third bathroom to a small house
will probably increase value less than the cost of the improvement.
Cooperative
Owner hold title to shares of stock in a cooperative corporation which in turn
hold title to the entire property as a single unit with apartment numbers
issued to each living unit. Owner receives the proprietary right to occupy his
apartment and use the common areas with all other co-op owners.
Co-owner
The full name of the second owner of the parcel of property (e.g. Jane H.
Doe).
Corner Influence
An effect on value found most often in commercial properties because of
greater ease of entry and exit, accessibility to higher volume of traffic and
increased show-window and advertising space.
Cost Approach
The method of estimating the value of property by: (1) estimating the cost of
construction based on replacement or reproduction cost new or trended
historical cost (often adjusted by a local multiplier); (2) subtracting
depreciation and; (3) adding the estimated land value. The land value is most
frequently determined by the sales comparison approach.
Cost Index
An index showing the variations in construction costs over time.
Cost Manual
Cost manual is a set of cost factors organized in schedules or tables, with
instructions for their use.
Cost Model
A method of valuing property improvements by estimating their cost to replace
and then depreciating this replacement cost for actual age of the improvement.
Cannot be used to value the land. Depends heavily on accurate cost data and
recognizing construction differences in structures.
Cost of Development
A method that projects improvements to the land, estimates the total revenues
and development costs, and calculates the value residual to the land after
subtraction of all costs, expenses, and profit.
Cost to Cure
Estimated cost to correct or replace a component or defect within a property.
CO-TRS
County
The largest division of local government in all states except Louisiana and
Alaska, where the comparable units are parish and borough, respectively.
County Board of Equalization
The board which, upon hearing competent evidence, has the authority to correct
and adjust the assessment rolls in its respective county to conform to fair
cash value.
Curable
That part of depreciation that can be revised by correcting deferred
maintenance and remodeling to relieve functional obsolescence.
Curable Depreciation
Items of physical deterioration or functional obsolescence that are
economically feasible to cure. Economic feasibility is indicated if the cost to
cure is equal to or less than the anticipated increase in the value of the
property.
Date of Sale
The date upon which the sale is agreed. This is considered to be the date the
deed, or other instrument of transfer, is signed.
Date of Transfer
The date upon which the sale is agreed. This is considered to be the date the
deed, or other instrument of transfer, is signed.
Debt Service
The total payments of principal and interest on a mortgage.
Declarant
Person or entity that creates and records the subdivision or condominium
documents including the project C.C. & R. Typically synonymous with the
project developer.
Deed
A written, legal instrument that conveys an estate or interest in real
property when it is executed and delivered. (See also Quitclaim Deed, Warranty
Deed).
Deed Restriction
A limitation that passes with the land regardless of the owner; usually limits
the property's type or intensity of use.
Delinquent Amount Due
The total amount of past due taxes on the property.
Demand
Schedule showing the amount of a good or service that would be purchased at
various prices during a given period.
Depreciation
The loss in value from all causes to property, after construction or purchase.
Depreciation Schedules
Tables used in mass appraisal which show the typical loss in value at various
ages or effective ages for different types of properties.
Depth Factor
Standard, mechanical technique for determining the value of an urban land lot
having certain depth from the value of a base lot having different dimensions.
Deterioration
Impairment of condition; a cause of depreciation that reflects the loss in
value due to wear and tear, disintegration, use in service, and the action of
the elements.
Direct Capitalization
Converts an estimate of annual income into an estimate of value, directly, by
dividing the annual income by an appropriate rate or by multiplying the annual
income by an appropriate factor.
Direct Cost
Cost incurred in construction on the site. For Example; materials, labor
supervision and utilities.
Discount Rate
The rate of return on investment; used to convert future income into present
value. The rate an investor requires to discount future income to its present
worth.
Discounted Cash Flow Analysis
A yield capitalization method used to calculate the present value of
anticipated future cash flows.
Divided Rights
Rights to property that have been divided among several owners in
partnerships, joint tenancy, tenancy in common and time sharing.
Easement for Enjoyment and Use
An interest in real property that conveys use, but not ownership, of a portion
or all of an owner's property. A provision in the PUD's C.C. & R.'s
conveying enjoyment and use of the common areas to the subdivision lot owners,
their families and guests.
Economic Life
The period of time during which buildings or other improvements on a property
are expected to contribute positively to the value of the total property. At
the end of this period, the improvements are normally demolished and replaced.
Also referred to, seen as Economic Years.
Economic Obsolescence
A cause of depreciation which is a loss in value as a result of impairment,
inutility, or desirability caused by factors outside the property's boundaries.
Or referred to as External Obsolescence.
Economic Rent
Effective Age
The typical age of a structure with respect to condition and utility, as of
the appraisal date.
Effective Gross Income
The potential gross rent, less vacancy and collection loss, plus miscellaneous
income. Also referred to EGI.
Effective Tax Rate
The tax rate expressed as a percentage of market value. It will be different
from nominal tax rate when the assessment level is not equal to one.
Egress
A way out; an exit or outlet.
Eminent Domain
The right of government to take private property for public use upon the
payment of just compensation. The Fifth Amendment of the U.S. Constitution,
also known as "the takings clause," guarantees payment of just
compensation upon appropriation of private property.
Engineering Breakdown Method
A detailed age-life method that can be used in conjunction with the
quantity-survey or unit -in-place methods of estimation RCN.
Equalization
The process by which an appropriate governmental body attempts to ensure that
property under its jurisdiction is appraised equally at market value, or as
otherwise required by law.
Escape Assessment
An assessment to increase the roll value for a previous year when a property
is under assessed or misses assessment.
Escheat
The right of government that gives the state titular ownership of a property
when its owner dies without a will or any ascertainable heirs.
Estimated Market Value
Is the assessor's estimate of what a property would sell for in an arm's
length transaction. Market value is defined as the most probable price that a
well-informed buyer would pay a well-informed seller for a property without
either party being unduly pressured to buy or sell.
Exterior Wall
The primary construction material used for the exterior wall.
Fair Cash Value
The value or price at which a willing buyer would purchase property and a
willing seller would sell property if both parties are knowledgeable about the
property and its uses and if neither party is under any undue pressure to buy
or sell and for real property shall mean the value for the highest and best use
for which such property was actually used, or was previously classified for
use.
Fair Market Value
The amount of cash or its equivalent that a property would bring if exposed
for sale in the open market. Also known as Full Cash Value.
Fee appraiser
An appraiser who is paid a fee for the appraisal assignments he or she
performs.
Fee Simple Absolute
In land ownership, complete interest in a property, subject only to
governmental powers. Also referred to as Fee Simple.
Final Order of Condemnation
A judicial order transferring either an easement or fee title to a plaintiff
for property condemned under eminent domain proceedings.
Fiscal Year
The period beginning July 1 and ending June 30.
Fixture
An item of tangible property that was originally personal in nature, but
because of the way it is used, the way it is attached, or both, has become an
integral part of the building, it is classified as real property.
Foreclosure
The legal process in which a mortgagee forces the sale of a property to
recover all or part of a loan on which the mortgagor has defaulted.
Fractional Assessment
Assessments that by law or by practice have assessment ratio/levels different
from one.
Fractional Section
A subdivision of a Township containing more or less than 640 acres of land.
Typically accounting for the overage or deficiency in acreage is done on the
north and/or west side of a section, and Fractional Section are found on the
north and/or west side of a Township.
Full Cash Value
Arizona Revised Statutes defines Full Cash Value (FCV) as being synonymous
with market value. For assessment purposes, Full Cash Value approximates market
value except for possible conditions unique to mass appraisal. This value is
for the tax year shown at the top of the page.
Full Economic Cost
Cost for appraisal purposes. Includes all market costs (direct and indirect)
necessary to purchase or construct equipment and make it ready for its intended
use.
Functional Obsolescence
A cause of depreciation which is a loss in value due to inability of the
structure to perform adequately, the function for which it is used, as of the
appraisal date.
Functional Utility
The ability of improvements to satisfy market standards and demands.
GIS
One type of computerized mapping system capable of integrating spatial data
(land information) and attribute data among different layers on a base map.
Also referred to as Geographical Information Systems.
Golf Course
For purpose of valuation for property taxes in Arizona only those golf courses
which meet all requirements set forth in A.R.S. 42-146.
Grantee
A person to whom property is transferred by deed or to whom property rights
are granted by a trust instrument or other document.
Grantor
A person who makes a transfer of title to real estate.
Gross Leasable Area
All area within the outside walls, including lobbies, restrooms, janitor
closets etc., designed for use and occupancy by the tenants.
Gross Lease
A lease in which the landlord (lessor) receives a stipulated rent amount and
pays all of the operating expenses and taxes attributable to the property. A
gross lease produces gross income to the lessor.
Hearing Date
The date of a scheduled appeal hearing for a property assessment appeal.
Heating Type
The primary heat source for the residence.
Highest and Best Use
The reasonable, probable, and legal use of vacant land or an improved
property, which is physically possible, appropriately supported, financially
feasible, and that results in the highest value. The four criteria the highest
and best use must meet are; legal permissibility, physical possibility,
financial feasibility, and maximum profitability. 2) Most profitable use at a
specific time, given legal, physical and financial limitations. Also referred
to as H&B.
Historical Cost
The original (original purchase) cost of a building, improvement, or personal
property, as opposed to current replacement, or reproduction cost.
Homeowners Organization
Typically a nonprofit, incorporated entity owned and controlled by the PUD lot
owners. Its purpose is to operate and maintain the common area property. Also
known as homeowner's association.
IAAO
International Association of Assessing Officers.
Income Approach
The method of estimating the value of a property based on income
capitalization. Income figures should reflect current market conditions and
typical management. 2) A set of procedures through which an appraiser derives a
value indication for an income-producing property by converting its anticipated
benefits into property value. This conversion can be accomplished in two ways.
One year's income expectancy can be capitalized at a market-derived
capitalization rate or at a capitalization rate that reflects a specified
income pattern, return on investment, and change in the value of the
investment. Alternatively, the annual cash flows for the holding period and the
reversion can be discounted at a specified yield rate.
Incurable
A part of depreciation where it is not economical to correct the condition,
and if corrected, the cost of correcting the condition exceeds the value.
Incurable Depreciation
An element of accrued depreciation; a defect caused by a deficiency or
superadequacy in the structure, materials, or design, which cannot be
practically or economically corrected.
Indirect Costs
Cost incurred in construction away from the site. For example; fees, permits,
insurance and loans.
Industrial Property
Land and/or improvements that can be adapted for industrial use; a combination
of land, improvements, and machinery integrated into a functioning unit to
assemble, process, and manufacture products from raw materials or fabricated
parts; factories that render service, e.g., laundries, dry cleaners, storage
warehouses, or those that produce natural resources, e.g., oil wells.
Ingress-Egress
A means of entering (ingress) and a way out; an exit or outlet (egress).
Intangible Personal Property
Rights over tangible real and personal property, but not rights of use and
possession, for example, notes, bonds, stocks, patents, mortgages, copyrights,
and insurance policies.
Interest
This is the amount that is imposed when payment is remitted after the due
date.
Interest Rate
A rate of return on capital; the premium paid for the use of money.
Inventory
Items of personal property that become part of a product or are themselves a
product that are held for sale or lease in the ordinary course of business.
Investment Property
Property that constitutes a business enterprise consisting of all tangible and
intangible assets assembled and developed as a single unit of utility for lease
or rental, in whole or in part, to others for profit; normally purchased in
expectation of annual net income and/or capital gain.
Investment Value
Value to a specific investor. Investment value mayor may not coincide with
market value depending upon the requirements of the specific investor.
Joint Tenancy
Joint ownership by two or more persons with the right of survivorship.
Keith Russell
Land
Real estate or real property, except improvements.
Land Contract
A contract for sale in which the seller retains title until the buyer
completes installment payments for the property. The sale is not recorded until
title passes to the buyer. (See also Contract for Deed).
Land Description Systems
Common referred to as legal description, are written descriptions of the
physical boundaries of property rights.
Land-To-Building Ratio
The proportion of land area to gross building area; typical land-to-building
ratios for properties combine land and building components into a functional
economic unit.
Land-to-Building Ratio
The ratio of land value to building (improvement) value. Also referred to as
Land-to-Improvement Ratio.
Land Premium
The dollar amount added to a property for certain premium conditions, i.e.
proximity to a golf course, lake, mountain view, etc.
Last Sold Date
The date on which a property parcel was last sold.
Law of Variable Proportions
Often called law of decreasing returns or the law of proportionality which
states that when the quantity of one productive service is increased by equal
increments, the quantities of other productive services remaining fixed, the
resulting increment of product will decrease after a certain point.
Lease
A contract between an owner and tenant for the possession of real property
that sets forth conditions for occupancy, use, and duration of the tenancy.
Lease Purchase Option Equipment
Equipment acquired via a lease purchase option in which the final payment, if
made, transfers title to the lessee.
Legal Description
A description of land that identifies the real estate according to a system
established or approved by law; an exact description that enables the real
estate to be located and identified. A description of real property sufficient
to locate it on the ground by reference to government surveys or approved
recorded maps.
Legal Owner
The owner of title, as distinguished from the holders of other interests,
e.g., beneficial or possessory interests.
Lessee
One who has the right to use or occupy property under a lease agreement.
Lessor
One who conveys the right to use and/or occupy property under a lease
agreement.
Lien
The legal right to take or hold property of a debtor as payment or security
for a debt.
Lien Date
The time when taxes for any fiscal year become a lien on property. The
assessed value of property as of 12:01AM on the lien date (January 1) governs
the tax status for the fiscal year beginning the following July 1.
Limited Property Value
A value of property which seeks the secondary value but is limited to maximum
annual changes. Limited property value cannot exceed the full cash value. It is
based on the previous year's limited value increased by either 10 percent or 25
percent of the difference between the full cash value of the current year and
the limited value of the prior year, whichever is greater, unless your property
has been changed as defined ARS 42-201.01 C and D since the previous year. Used
for taxation to fund general operating budgets.
Livable Square Footage
The area within the residence that is designed as living area, normally that
which is heated and/or cooled.
Local Multiplier
An adjustment to replacement or reproduction cost new or historical cost, to
reflect local costs.
Long-Lived Items
Items that are the basic structure of a building and are not usually replaced
during economic life. For example: foundation, roof structure, and framing.
Lot
1. A distinct piece of land; a piece of land that forms a part of a district,
community, city block, etc.; 2. A smaller portion into which a city block or
subdivision is divided; described by reference to a recorded plat or by
definite boundaries; a piece of land in one ownership, whether platted or
unplatted.
Lot and Block Survey
A plat in which a larger parcel of land is subdivided into small units for the
purpose of sale. Conveyances need to refer to only to the lot, block, and plat
book designation.
Mailing Address
The address all correspondence is currently being sent to.
Market Price
Is the amount actually paid or about to be paid in a particular transaction.
Market Rent
The currently prevailing rent for properties comparable to the subject
property.
Market Value
The most probable sale price of a property in terms of money in a competitive
and open market, assuming that the buyer and seller are acting prudently,
knowledgeably and for self-interest, allowing sufficient time for the sale, and
assuming that the transaction is not affected by undue stimuli or duress.
Mass Appraisal
The systematic appraisal of groups of properties, as of a given date, using
standardized procedures and statistical testing.
Mass Model
A method of determining the full cash value of property by noting the
different characteristics of properties that are sold and using a multiple
linear regression formula to assign weight to these different characteristics.
This method values land and improvements as a unit. Used primarily for urban
residential property where similarity of properties and sufficient volume of
sales provides accurate data.
Master Planned Community
Development consisting of a large number of separate, subdivided projects with
a wide variety of uses, including fairly substantial commercial and public use
facilities to support the community. Common areas are typically owned by the
developer initially and eventually by a multi-tiered property owner association
consisting of a master association with junior, auxiliary association owning
and controlling common areas in a particular subdivision subject to the master
association. Sun City and Ahwatukee are good examples of master planned
communities.
Meridian
A principle north-south line in the rectangular land survey system.
Metes and Bounds
A land description system in which boundaries are described as distance
between two semi-permanent points or as lines following compass bearings.
Metes and Bounds System
A system for the legal description of land that refers to the parcel's
boundaries, which are formed by the point of beginning (POB) and all
intermediate points (bounds) and the courses or angular direction of each point
(metes).
Model
Mathematical equations used to analyze quantities of data. Most of the models
used in real estate appraisal are based on one of the three approaches to
value.
Model Calibration
The development of adjustments, or coefficients based on sales analysis, that
identifies specific factors that have an actual effect on market value.
Model Class
An overall rating or grade given to the residence.
Model Specification
The formal development of a model in a statement or equation, based on data
analysis and appraisal theory.
Mortgage
A legal document providing a specific property as security for a loan under
certain terms and conditions.
Multiple Regression Analysis
A statistical technique similar to correlation used to analyze data in order
to predict the value of one variable (dependent), such as market value, from
the known values of other variables (independent) such as lot size, number of
rooms, etc. Also referred to as MRA.
Multiple Use
1. A combination of compatible land uses in an area; 2. A combination of
compatible uses in a single building.
MVS
Marshall Valuation Service, published by Marshall Swift.
Neighborhood
The environment of a subject property that has a direct and immediate impact
on its value.
Neighborhood Analysis
A study of the relevant forces which influence property values within the
boundaries of a homogenous area.
Net Income
The income expected from a property, after deduction of allowable expenses.
Net Income Multiplier
A factor expressing the relationship between value and net operating income;
the reciprocal of the overall rate.
Net Income Ratio
The ratio of net income to total gross income. It can be expressed as a
percentage of potential gross income or of effective gross income.
Traditionally, the net income ratio is expressed as a percentage of effective
gross income.
Net Leasable Area
The area within a building or structure that is actually occupied by an
individual tenant. Net leasable area does not include any of the common areas
shared by other tenants, such as lobbies, restrooms, etc.
Net Lease
A lease in which the landlord (lessor) receives a stipulated rent amount and
the tenant (lessee) pays all operating expenses and taxes attributable to the
property. A net lease produces net income to the lessor.
Net Operating Income
The income expected from a property, after deduction of allowable operating
expenses. Also referred to as NOI.
New Construction
The construction of new buildings, additions to existing buildings, or
alterations which convert the property to another use or extends the economic
life of the improvement, is reassessed, establishing a new base year value for
only that portion of the property.
New Improvement Value
Is the amount added to the property's estimated market value due to additions,
remodeling and other changes to the property.
Nominal Tax Rate
A mathematical expression of the relationship between the tax levy and the
total assessment for a jurisdiction. (Levy divided by assessment = nominal tax
rate).
Notice Value/Date
This refers the assessment notice that is mailed to a property owner
concerning changes in the assessed value of the property. It contains
information such as the Market and Assessed values as well as the date it was
mailed. If property owners disagree with this change they must request an
informal hearing with the Assessor's Office within the specified time frame
regarding any change.
Number of Rooms
The total number of rooms in the residence, i.e. living room, dining room,
family room, kitchen, bedrooms, den. (This does not include bathrooms).
Obsolescence
One cause of depreciation; an impairment of desirability and usefulness caused
by new inventions, changes in design, improved processes for production, or
other external factors that make a property less desirable and valuable for a
continued use; may be either functional or external.
Operating Expenses
The periodic expenditures necessary to maintain the flow of income from a
property.
Overall Age/Life Method
Method of estimating accrued depreciation based on straight-line depreciation
in which the building is assumed to depreciate by a constant percentage each
year over its economic life.
Overimprovement
An improvement that does not represent the most profitable use for the site on
which it is placed because it is too large or costly and cannot develop the
highest possible land value; may be temporary or permanent.
Owner
The full name of the primary owner of the property parcel.(e.g. John P. Doe).
Owner of Record
The owner of title to a property as indicated by public records.
Ownership Type
A description of ownership type as provided by the Assessee, including
proprietorship, partnership, corporation or business trust.
PAAA
Property Appraisal and Assessment Administration.
Paid
This is the amount of tax posted as paid for the year in question, either in
installment payments or full payment. If you have paid funds that do not yet
show paid, contact the Treasurer's Office at 602-506-8511.
Parcel
An area of land, of any size, that is capable of being conveyed by a single
legal description in one ownership.
Parcel Number
This is a unique number assigned to each parcel. The first three digits are
usually the Assessor's book number, the second two digits are the Assessor's
map number, the next three are the Assessor's parcel number. Sometimes, when
the parcel has been split, you will see a letter after the last three numbers.
Partial Interest
Divided or undivided rights in real estate that represent less than the whole.
Partnership
A business arrangement in which two or more persons jointly own a business and
share in its profits and losses.
Patio Quantity
The number of covered patios and/or concrete slabs.
Patio Type
Covered patio, concrete slab, both, or none.
Penalty Assessment
A penalty for failure to file a Business Property Statement with the Assessor
within the prescribed time. The penalty is equal to 10% of the assessed value
of the unreported property.
Personal Property
Property that is not real is personal. Identifiable portable and tangible
objects, e.g., furnishings, artwork, antiques, gems and jewelry, collectibles,
machinery and equipment; all property that is not classified as real estate;
including airplanes, boats, and business property such as computers, supplies,
furniture, machinery and equipment. (Most business inventory, household
furnishings, personal effects, and pets are exempt from taxation.). Main
characteristic of personal property is its movability without damage to itself
or the real estate.
Physical Condition
An indicator of the overall condition of the primary structure.
Physical Deterioration
A cause of depreciation which is a loss in value due to wear and tear and the
forces of nature.
Planned Unit Development
A type of residential, commercial, and/or industrial land development in which
buildings are clustered or set on lots that are smaller than usual, and large,
open park like areas (common areas) are included within the development.
Individual properties are owned in fee with the joint ownership (directly or
through a homeowner's organization) of open space areas. Also referred to PUD.
Plat
1. A plan, map, or chart of a city, town, section, or subdivision indicating
the location and boundaries of individual properties; 2. A map or sketch of an
individual property that shows property lines and may include features such as
soils, building locations, vegetation, and topography.
Plot Plan
A plan showing the layout of improvements on a property site or plot; usually
includes location, dimensions, parking areas, landscaping, and other features.
Point of Beginning
A survey reference point that is tied into adjoining surveys. In a metes and
bounds description, courses that connect monuments or points are generally
described from this point. Also referred to as POB.
Pool Area
The square footage of the water surface of pools and spas (if any).
Potential Gross Income
The total gross income at 100 percent occupancy. Also referred to as PGI.
Power of Attorney
A legal instrument in which a person authorizes another to act as his or her
attorney or agent.
Price
Private Encumbrances
Private hindrances that affect value and sale price such as: easements,
condominium controls, and deed or subdivision restrictions.
Property
Property includes an aggregate of things, or rights to things, which are
protected by law. There are two basic types of property: real and personal. The
Assessor assesses real estate (land and improvements), and taxable personal
property.
Property Address
The physical address of the parcel of property.
Property Class
A descriptive code that identifies the type of property.
Property Tax Levy
The total amount of money to be raised from the property tax as set forth in
the budget of a taxing jurisdiction.
Qualitative
Pertaining to the subjective nature of some variable of interest. For example,
view, fire protection, quality, or site/location.
Quality
An indicator of the overall quality of the primary structure.
Quantitative
Pertaining to the objective nature of some variable of interest. It can be
measured or counted with little ambiguity. For example, number of bathrooms,
year built, additions, or size.
Quantity Survey Method
Method of cost estimating which requires complete itemization of all
construction, labor, and material costs by components and subcomponents and all
indirect costs.
Quarter Section
A subdivision of a Section containing 160 acres more or less, described by
referencing the center point in the Section, i.e. the NE ¼ is north and east of
the center point.
Quitclaim Deed
A form of conveyance in which any interest the grantor possesses in the
property described in the deed is conveyed to the grantee without warranty of
title.
Range Lines
Lines in succeeding six miles increments on either side of a Meridian.
Ratio Study
A study of the relationship between appraised values and market values.
Indicators of market values may be either sales, or independent appraisals. The
common interest in ratio studies is the level and uniformity of the appraisals.
RCLND
A method used by the Assessor to value business personal property. It is the
cost to replace an existing property with a property of equivalent utility
minus normal depreciation. (Replacement Cost less Normal Depreciation.)
RCN
Replacement cost new / reproduction cost new.
Real Estate
The physical parcel of land and all improvements permanently attached. An
identified parcel or tract of land, including improvements, if any.
Real Property
The rights, interests, and benefits connected with real estate.
Recorded Document
Any written instrument or judgment affecting the title or possession of real
property submitted to the County Recorder and made of record by that office;
includes Grant Deeds, Quitclaim Deeds, leases, contracts, and court decrees.
Rectangular Coordinates
A land description system where boundaries are described as lines running from
points on a X and Y grid.
Rectangular Land Surveys
Land description system based on permanent, uniformly sized rectangular grids
which can be subdivided into smaller units of land.
Rectangular Survey System
A system for the legal description of land that refers to the parcel's
location in a township, an area approximately six miles square that is formed
by the intersection of principal meridians and base lines. Each township
contains 36, one-square-mile sections of 640 acres.
Regular Section
A one square mile subdivision of a township containing 640 acres.
Remaining Economic Life
The number of years remaining in the economic life of an improvement as of the
appraisal date, and provides a basis for estimating the recapture rate used in
the income approach.
Replacement Cost
The cost-of-constructing .a substitute structure of equal utility using
current materials, design and standards.
Reproduction Cost
The cost of constructing a replica, or identical structure, using the same
materials, construction standards, design and quality of workmanship.
Right of Survivorship
Right of the surviving joint tenant to acquire the interest of the deceased
joint tenant in joint tenancies and tenancies by the entirety without any
probate proceedings.
Roll
A listing of all assessed property within the county. It identifies property,
the owner, and the assessed value of the property.
Roof Type
The predominate roof covering.
Sale Date
The date a parcel of property was sold for tax collection purposes.
Sale Price
The price for which a property was sold. See also adjusted sale price.
Sale Ratio/Assessment Ratio
The ratio of an appraised (or assessed value) to the sale price, or adjusted
sale price of a property.
Sales Comparison Approach
The method of estimating the value of a property based on an analysis of sales
of similar properties. The sales comparison approach may be used to value
improved properties, vacant land, or land being considered as though vacant; it
is the most common and preferred method of land valuation when comparable sales
data are available.
Sales Price
The most recent price paid for the property. Only sales for the last three
years are maintained.
Sales Ratio Study
A ratio study which uses sales prices as proxies for market values.
Sales/Assessment Ratio
The ratio of listed full cash value to selling price.
Sales-Ratio Analysis
A study of the relationship between assessed values and sale prices and the
deviations that result from differences between the two; used to determine the
efficiency and fairness of the assessment process in a particular jurisdiction.
Secondary Value
The value of property determined by the assessor each year. The secondary full
cash value is the same as full cash value. Used for taxation to pay bonds,
overrides and special districts.
Section
In the government survey system of land description, one of the 36 sections,
each one mile square, into which each township is divided.
Seller
A person who makes a transfer of title to real estate.
Senior Valuation Freeze
Provides for those who apply and qualify, the taxable market value will not
increase on a homestead property owned by a person 65 years of age or older
before January 1. All sources of income, including taxable and nontaxable
monies, cannot exceed $32,352 for a single owner or $40,440 for two or more
owners, in an average of income for the previous year unless the individual
ceases to own or occupy the property, the income exceeds the limit, or if
improvements have been made to the property. (S.Q. 677)
Separated Rights
Rights to property that have been separated by deed such as: air, mineral,
water, and leaseholds.
Short-Lived Items
Items of a structure which have a shorter life than the basic structure. For
example: roofing, water heaters, floor covering and interior finish.
Single Property Appraisal
Systematic appraisal of properties one at a time.
Site Address
The physical location of a property.
Site Amenities
The specific location-related attributes of a property; such as topography,
utilities, street traffic, view, etc.
Situs
The physical location of property.
Special Districts
Special service governments created to provide a particular service, e.g.,
economic development districts, water resource management districts.
Square
The cost of one square foot of an improvement; obtained by dividing the
actual, or estimated, cost of a building by its gross floor area or by dividing
the actual, or estimated, cost of a land improvement by its square foot area;
can be multiplied by the number of square feet in a building or land
improvement to produce the actual or estimated cost.
Stories
The number of stories in the primary structure.
Subdivision
A tract of land divided by means of a map, into lots or lots and blocks, for
the purpose of sale or lease, generally for residential or commercial purposes.
Substitution
A principle stating that a property's value tends to be set by the cost of
acquiring an equally desirable substitute.
Supplies
Assessable property used up in the normal operation of a business, but which
are not intended for sale or lease.
Supply
A schedule showing the amount of a good or service that would be offered for
sale at various prices during a given period.
Surplus Productivity
The income remaining after the costs of labor, capital, and management have
been paid.
Tax
A compulsory contribution legally exacted from persons, corporations, and
other organizations by a government, for the support of government and the
maintenance of public services.
Tax District
A political subdivision of one or more assessment districts where a
governmental unit has the authority to levy taxes.
Tax Exempt Amount
The total amount of tax exemption (tax savings) that is being applied to the
property.
Tax Levy
The total amount of money a taxing jurisdiction needs to raise through
property taxation.
Tax Rate
A measure of tax liability expressed as a dollar amount for each one hundred
dollars of property net assessed value (Arizona does not use 'mills,' which are
per one thousand dollars.) Arizona has both primary and secondary tax rates,
applied using primary and secondary net assessed values, respectively. The two
rates cannot be added together unless the primary and secondary values are the
same.
Taxation
The right of government to raise revenue through assessments on valuable
goods, products, and rights.
Taxpayer
One who pays or is liable for a tax.
Tenancy
1. The holding of property by any form of title; 2. The right to use and
occupy property as conveyed in a lease.
Tenancy in Common
An estate held by two or more persons, each of whom has an undivided interest.
Tenant Improvements
Improvements made by the tenant/lessee.
The Property Classification
Is mandated by State Law and is based on the use of your property. Different
classes of property are taxed at different rates established by the State
Legislature.
Time Adjusted Sales
Sales prices collected in one time period factored to approximate sales prices
in another time period for comparison or statistical purposes.
Time Value of Money
The principle that an amount of money anticipated as income in the future is
always worth less than an equal amount in hand at the present time.
Time-Adjusted Sale Price
The price at which a property sold, adjusted for the effects of price changes,
as reflected by the market between the date of sale and the date of analysis.
Title
The combination of all elements that constitute proof of ownership.
Townhouse
A single family, attached dwelling unit with common walls with common area
facilities owned either as an undivided interest by the lot owners or by a
homeowners' organization. Resembles a condominium unit but is not created under
A.R.S. Title 33.
Township
An approximately 36 square mile division of land employed in the Rectangular
Land Survey System. Townships are bounded by two successive Range Lines on the
east and west and two successive Township Lines on the north and south.
Township Lines
Lines in succeeding six mile increments on either side of a Base Line.
TR
Tract
A parcel of land; an area of real estate that is frequently subdivided into
smaller parcels.
TRS
Trust Deed
A document similar to a mortgage which conveys title to a trustee for the
benefit of some other person named in the document.
Trustee
A person who controls legal title to a property under a trust agreement.
Uniform Assessments
Equal assessment charged to all members of the homeowners' organization for
the operation and maintenance of the common area property.
Units of Comparison
A property as a whole, or some smaller measure of the size of the property
used in the sales comparison approach to estimate a price per unit.
Use Classification
Categories into which real estate can be divided according to its use
residential, commercial, industrial, agricultural, and special purpose.
Valuation
The process of estimating the market value, insurable value, investment value,
or some other properly defined value of an identified interest or interests in
a specific parcel or parcels of real estate as of a given date. Valuation is a
term used interchangeably with appraisal.
Value
The terms "full value", "full cash value", "cash
value", "actual value" and "fair market value" mean
the price at which a property, if exposed for sale in the open market with a
reasonable time for the seller to find a purchaser, would transfer for cash or
its equivalent under prevailing market conditions between parties who have
knowledge of the uses to which the property may be put, both seeking to
maximize their gains and neither being in a position to take advantage of the
exigencies of the other.
Value in Exchange
The amount an informed purchaser would offer in exchange for a property under
given market conditions.
Value in Use
The value of property for a specific use.
Variable Proportions
Also called the law of decreasing returns, this states that as quantities of
one productive service increases, the quantities of other productive services
remaining fixed, the resulting increment of product will decrease after a
certain point.
Warranty Deed
A deed that conveys to the grantee title to the property free and clear of all
encumbrances, except those specifically set forth in the document.
Web Site
A site (location) on the World Wide Web. Each site is owned and managed by an
individual, company or organization.
Year Built
The year in which a primary building on a parcel of property was constructed.
Year Constructed
The year in which the primary structure was completed.
Yield Rate
The return on investment applicable to a series of incomes which results in
the present value of each. Examples of yield rates are interest rate, discount
rate, equity yield rate, and internal rate of return.
Zoning
The public regulation of the character and extent of real estate use through
police power; accomplished by establishing districts or areas with uniform
restricts relating to improvements; structural height, area, and bulk; density
of population; and other aspects of the use and development of private
property.
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