CH 3 - Land Use Controls & Regs

Question 1

How do you calculate Assessed Value on property?

Answer 1

Appraised Value * Assessment Rate

i.e. $200,000 * 0.04 = $8,000

Question 2

How do you calculate Annual Tax on a property with a $8,000 assessment value and a 0.181 millage rate?

Answer 2

$8,000 * 0.181 = $1,448

Question 3

What type of taxes can be charged if agricultural land is used for a different purpose?

Answer 3

6% Rollback Taxes (can be charged backward 5 years)

Question 4

When the government exercises its right of Eminent Domain, it must be for whose benefit? And what must be paid for the property?

Answer 4

for public benefit; and Just Compensation must be paid

Question 5

To assure proposed land uses conform with master plan, this is the primary intent of ___________.

Answer 5

zoning ordinances

Question 6

Development/building plans must be submitted to ___________ for approval.

Answer 6

the municipality

Question 7

_____________ run with the land and apply to and bind successive owners of the property and enforced by HOA.

Answer 7

Restrictive covenants

Question 8

What does buying a discount point do to your loan?

Answer 8

It lowers your interest rate by 1/8 of a point.

Question 9

How much is a discount point on a $150,000 purchase, with a 20% down payment?

Answer 9

$1,200

i.e. $150,000 * .80 * .01 = $1,200

Question 10

What are the time limits for a 1031 exchange?

Answer 10

Designate a replacement property, in writing, 45 days from the sale of your property.

Close on the new property 180 days from the sale of your property.

Question 11

A rental property has been appraised at $92,500. Millage rate is 127 mills, what are the property taxes?

Answer 11

$92,500 * .06 * 0.127 = $704.85

Question 12

What type of relief is available under the SC Homestead Exemption for a person over age 65?

Answer 12

$50,000 reduction in fair market value of the property

Question 13

If property taxes on an owner-occupied house are $1,200 per year, what millage rate was used for a property appraised at $150,000?

Answer 13

$150,000 * 0.04 = $6,000 (assessment value)

$1,200 / $6,000 = 0.2 (200 mills)

Question 14

The purpose of ___________ is to ensure compliance with building codes.

Answer 14

building permits

Question 15

When real property passes to the state after an owner dies without a will or known heirs, this is called _____.

Answer 15

Escheat

Question 16

These characteristics would each individually qualify what exemption in SC?:

• 65 years of age
• totally disabled
• legally blind

Answer 16

SC Homestead Exemption

Question 17

True of False: Deed restrictions is a type of public control.

Answer 17

False, deed restrictions is a private control! Things like building codes and zoning laws are public controls.

Question 18

Area of a right triangle with 100’ height and 100’ base?

Answer 18

(100 * 0.5) * 100 = 5,000

Question 19

you can deduct mortgage interest paid on acquisition debt which totals to _________

Answer 19

up to $1,000,000 in acquisition debt

Question 20

you can deduct mortgage interest paid on equity debt which totals to __________

Answer 20

up to $100,000 in equity debt