Chapter 19: Planning, Zoning, and Environmental Hazards

Question 1

Government Planning

Answer 1

Real estate does not operate in a totally free market. Government planning began in the early years of our nation’s growth. Philadelphia, planned in 1682, Savannah in 1733, and Washington, D.C., in 1791 are examples of some of our older planned cities. The industrial revolution brought about a move away from formal planning as the economic philosophy of laissez-faire became popular, a concept that allowed citizens to do what they wished free of government intervention. The laissez-faire concept was based on the idea that competition and profit should prevail over the common good, regardless of the social costs.

Uncontrolled growth led to many problems. By allowing anything to be built anywhere, great concern was created, particularly among homeowners. Encroaching development of industrial plants into residential neighborhoods potentially threatened property values. Citizens developed a renewed interest in planning to control growth and protect values.

Question 2

The introduction of zoning laws also brought about concern

Answer 2

over lost property value, as communities imposed restrictions on the use of land. For instance, a parcel that might have a higher value for use as a factory might be restricted to the use for a residence. Property owners were faced with losses in value without recourse. In 1926, opposition to zoning ultimately resulted in the U.S. Supreme Court ruling that zoning was a constitutional function of government that was based on the overriding benefits that accrued to the community.

The scope of planning today has been broadened to include wide geographic areas and is not limited to the city or county jurisdictional boundaries.

Question 3

What are some of the key goals and benefits of planning

Answer 3

• Create an optimal social and economic environment.
• Allow the maximum number of properties to achieve their highest and best use.
• Ensure adequate provision of services.
• Reduce the cost of growth (tax money) by preventing reconstruction due to uncontrolled sprawl.
• Prevent losses in value by limiting the potential encroachment of incompatible uses.
• Provide for road right-of-ways and setbacks.
• Protect against costly drainage, flooding, or other environmental problems.
• Proactively reduce any political or equity issues in the site locations for landfills, prisons, and other possibly controversial, but necessary, facilities.

Question 4

Florida’s Comprehensive Plan

Answer 4

Florida has one of the most comprehensive and progressive land use planning programs in the country. From the first planning legislation in 1928, many laws, rules, regulations, and policies have been enacted affecting the planning and development activities of the state and local governments.

There are three levels of planning: local, regional, and state.

Question 5

Local Government Planning

Answer 5

In Florida, the authority for establishing and implementing the roles, processes and powers of comprehensive planning and future development rests primarily with the local governments (counties or municipalities), which have regulatory authority over the use of land. The governing body of each local government designates a local planning agency. The agency may be a local planning commission, the planning department of the local government, or other instrumentality, including a countywide planning entity. The planning agency must include a representative of the school district, appointed by the school board. The government body may designate itself as the local planning agency with the addition of a nonvoting school board representative. All meetings of the local planning agency must be public meetings, and agency records are public records.

Question 6

Regional Planning Councils (inter-jurisdiction)

Answer 6

Regional planning councils address land use planning and infrastructure issues that span multiple jurisdictions to ensure that the local plans are coordinated with plans of surrounding areas.

Question 7

State Comprehensive Planning

Answer 7

State comprehensive planning, administered under the Florida Department of Economic Opportunity, provides standards and processes to ensure that all comprehensive plans are financially feasible and that the plans provide the infrastructure needed to support development.

Question 8

Florida’s Growth Management Act of 1985

Answer 8

In 1985, Florida enacted the Local Government Comprehensive Planning and Land Development Regulation Act, Chapter 163, Part II, of the Florida Statutes. This statute, commonly referred to as Florida’s Growth Management Act, required local governments to develop a land-use plan that must be coordinated with the land-use plans of surrounding localities. The goal of this Act was to limit and control growth to acceptable levels, thereby considering the environmental, political, social, and human needs of society. Cities and counties were prevented from issuing building permits to developers or permit real estate growth ahead of or in advance of adequate infrastructure. Adequate facilities for transportation, streets, sewage and water, schools, police and fire protection, and health services were required to have approved planning and funding for their installation in advance of development.

Question 9

Bert J. Harris Private Property Rights Protection Act

Answer 9

The Bert J. Harris Private Property Rights Protection Act of 1995 was enacted to provide remedies for property owners who are burdened by inordinate government restriction on the use of land. A simplified method was put into place that allows owners to obtain compensation from the government when such restrictions reduce the ability to use their land.

Question 10

Community Planning Act of 2011

Answer 10

In 2011, The Growth Management Act specified in F.S. 163 was significantly modified and renames as the Community Planning Act. The new Act strengthened the role, processes, and powers of the local governments in the comprehensive planning. The revised statutes streamlined the planning process, expedited the state review process by reducing the levels of review at the state and regional levels, and reduced costs to the state and to property owners and developers.

Also in 2011, the community development and planning responsibilities that were previously under the DCA were moved to the Division of Community Development within the Florida Department of Economic Opportunity (DEO).

Question 11

The Comprehensive Plan Concurrency

Answer 11

F.S. 163 contains concurrency rules, which require a minimum level of public infrastructure be available to support growth and development around the development site. Every comprehensive plan is required by statute to address the following infrastructure items, referred to as concurrency elements, on a statewide basis:

• Sanitary sewer
• Solid waste
• Drainage
• Potable water

Question 12

The Community Planning Act made other previously required concurrency elements

Answer 12

The Community Planning Act made other previously required concurrency elements optional and gave the local governments the option to extend concurrency requirements to additional public facilities within their jurisdictions. If they do so, the comprehensive plan must provide the principles, guidelines, standards, strategies, and means to ensure that the adopted levels of service can be reasonably met.
The comprehensive plan must be implemented by adopting sufficient land use control ordinances and capital improvement programs for the required concurrency elements.

Question 13

Land Use

Answer 13

is the development that has occurred on the land, the development that is proposed by a developer on the land, or the use that is permitted or permissible on the land under an adopted comprehensive plan or element.

Question 14

Capital Improvement

Answer 14

refers to the physical assets constructed or purchased to provide, improve, or replace a public facility, and which are typically large scale and high in cost. The cost of a capital improvement is generally nonrecurring and may require multiyear financing. The physical assets that have been identified as existing or projected needs in the individual comprehensive plan elements are considered capital improvements.

Question 15

Comprehensive Plan Local Planning Agency

Answer 15

A comprehensive plan, or master plan, is an overall plan for the city or county. The purpose of the comprehensive plan is to ensure that area growth is consistent with an overall concept. Since change is inevitable, the plan must remain flexible. The development of the comprehensive plan is the primary function and responsibility of the local planning agency. The agency makes recommendations to the governing body regarding the adoption of the comprehensive plan and amendments.

During the preparation of plans, and prior to any recommendation to the governing body, the local planning agency must hold at least one public hearing, with public notice on the proposed plan or amendment.

The local planning agency has authority in the following three areas: review and approval of site plans, sign control, and subdivision plans.

Question 16

Site Plans

Answer 16

include a map that describes the following:
• How the land will be developed
• Location of buildings and other structures
• Parking facilities
• Traffic control
• Landscaping

Question 17

Sign Control

Answer 17

signs are an important advertising medium for businesses; however, they can be the cause of distraction and traffic accidents. Many people object to the size and placement of signs because they often lack aesthetic value. These concerns and others have led planners and government bodies to enact laws that control and restrict the size and placement of signs.

Question 18

Subdivision Plans

Answer 18

must be prepared and submitted by developers before an overall plan of construction can begin. A map called a plat, must be approved by the local planning agency, after which it is reviewed by the governing body. Once approval of the governing body has been obtained, the plat is recorded in the public records, and assigned a book and page number for reference. Building permits cannot be issued until the plat has been made a part of the public record.

Question 19

Preparing the Comprehensive Plan

Answer 19

1. Population Study
2. Thoroughfare Study
3. Physiographic Study
4. Economic Base Analysis Study
5. Existing Land Use Study

Question 20

Population Study

Answer 20

The population study examines trends in population (both permanent and seasonal) over the past 20 or 30 years. The path of development and movement of people over time may indicate how future development should be coordinated.
Demographic information developed in this study is the most important element used to develop the comprehensive plan. From an estimate of the growth in the number of households, planners can estimate the future need for roads, schools, police, fire, and medical services, and other infrastructure required to support the community’s requirements. This information can also be useful in anticipating the need for additional social services.

Question 21

Thoroughfare Study

Answer 21

A thoroughfare study examines the existing systems of streets, highways, and traffic patterns to determine the future arterial needs. A thoroughfare study generally involves several levels of government including city, county, and regional planning groups. Information gained in the population study forms the basis by which decisions are made that concern future requirements for streets, roads, and public transportation.
Federal and state laws mandate that studies be performed in urban areas that exceed certain population density. A large urban community draws traffic from surrounding areas, impacts the infrastructure, and clogs traffic arteries. By requiring a coordinated planning effort between cities, counties, and the state, better traffic systems can be developed at lesser taxpayer cost than would be possible with uncontrolled urban sprawl.

Question 22

Physiographic Study

Answer 22

a physiographic study is one in which soil types and the load-bearing capacity of the land are studied. Land with low-bearing capacity would not be suitable for high-rise offices or heavy industry. Soil types are important in planning for potential agricultural use. Area maps are prepared based on these studies that show the various soil types. By using this information, planners can help assure that the highest and best use of land can be achieved.

Question 23

Economic Base Analysis Study

Answer 23

An economic base analysis study reviews local business activity. It examines employment within the community to assist in projecting population, income, and other variables that affect the community. Employment is broken down and classified as being either basic or service by comparing national employment with local employment in the same business or industry.

Question 24

Basic Businesses

Answer 24

basic industries or businesses, also called export, are those whose payroll costs are met essentially by dollars generated from outside the community. Examples of such businesses include large manufacturing plants, large tourist attractions, metropolitan airports and government centers such as Tallahassee, colleges and universities, and professional sports franchises. These businesses draw purchasing power into the area, thereby adding to the economic health of the community.

Question 25

Service Businesses

Answer 25

service businesses hire and pay people locally with dollars earned from others who live in the same community, such as florist shops, ice cream parlors, beauty shops, movie theaters, and the like. These businesses provide the day-to-day services everyone wants, but essentially recirculate the same dollars within a community.

Question 26

Existing Land Use Study

Answer 26

the existing land use study identifies how the land is currently developed and used. Every parcel of land within the study area is shown on a map that indicates the current use. Color codes are often used to identify different land uses. Once completed, these maps identify growth patterns and trends, which in turn help to determine the best future use of parcels in the path of growth. Understanding the current use of land provides the basis for planning for the future. Land uses are generally categorized by user types. Each category is also divided into classifications, which may vary from one political jurisdiction to another.

Question 27

The five different categories of land use and classification

Answer 27

- Residential (singe-family, small residential, large income properties) - Commercial (retail, medical offices) - Industrial (light assembly, warehouse, heavy industry) - Agricultural - Special Purpose

Question 28

Recreation and Community Facilities Study

Answer 28

The recreation and community facilities study locates and analyzes existing recreational and community facilities to determine the community’s ability to continue to provide these services in the future. Based on information derived from the population study, planners can anticipate the number and location of similar facilities that may be required.

Question 29

Required Elements of the Comprehensive Plan

Answer 29

- Future Land Use - Transportation - Water, sanitary and storm sewers, and solid waste - Conservation of natural resources - recreation - housing - coastal zone protection - intergovernmental coordination

Question 30

Future land use

Answer 30

the future land use plan states the proposed future general distribution, location, and extent of the uses of land. The proposed plan must be shown on land use maps and must be based upon surveys, studies, and data regarding the area. The approximate acreage and the general range of density or intensity of use must be provided. This plan must also establish the long-term direction of the land use programs and activities. o Density- is a measurement of the number of people or residential units allowed per unit of land, such as residents or employees per acre. o Intensity- is a measurement of the extent to which land may be developed or used, including the consumption or use of the space above, on, or below ground; the measurement of the use of or demand on natural resources; and the measurement of the use of or demand on facilities and services.

Question 31

Transportation

Answer 31

the transportation plan must address traffic circulation, including the types, locations, and extent of existing and proposed major thoroughfares and transportation routes, including bicycle and pedestrian ways. The plan must include a map showing the general location of the existing and proposed transportation system features and must be coordinated with the future land use maps.

Question 32

Water, sanitary and storm sewers and solid waste

Answer 32

a general plan is required indicating ways to provide for sanitary sewer, solid waste, drainage, potable water, and natural groundwater aquifer recharge protection. This plan must be correlated to the future land use plan and may be a detailed engineering plan with a topographic map.

Question 33

Conservation of natural resources

Answer 33

a plan is required for the conservation, use, and protection of natural resources in the area, including air, water, water recharge areas, wetlands, water wells, estuarine marshes, soils, beaches, shores, flood plains, rivers, bays, lakes, harbors, forests, fisheries and wildlife, marine habitat, minerals, and other natural and environmental resources, including factors that affect energy conservation. Natural resources must be analyzed and existing recreational or conservation uses, known pollution problems, including hazardous wastes, and the potential for conservation, recreation, use, or protection must also be identified.

Question 34

Recreation

Answer 34

a recreation and open space plan is required that provides a comprehensive system of public and private sites for recreation, including, but not limited to, natural reservations, parks and playgrounds, parkways, beaches and public access to beaches, open spaces, waterways, and other recreational facilities.

Question 35

Housing

Answer 35

a housing plan is required consisting of principles, guidelines, standards, and strategies is required in the following situations: o the provision of housing for all current and anticipated future residents of the jurisdiction, o the elimination of substandard dwelling conditions, o the structural and aesthetic improvement of existing housing, and o the provision of adequate sites for future housing, including affordable workforce housing, housing for low-income, very low-income, and moderate-income families, mobile homes, group home, and foster care facilities, with supporting infrastructure and public facilities.

Question 36

Coastal zone protection

Answer 36

a coastal management plan is required to set the principles, guidelines, standards, and strategies for the local government’s decisions and programs to: o Maintain, restore, and enhance the overall quality of the coastal zone environment, o Preserve the continued existence of viable populations of all wildlife and marine life, o Avoid irreversible loss and protect the orderly and balanced utilization and preservation of all living and nonliving coastal zone resources, o Use ecological planning to determine the suitability of land development, o Protect human life against the effects of natural disasters, o Direct the orderly development, maintenance, and use of ports to facilitate deep water commercial navigation and other related activities, and o Preserve historic and archaeological resources.

Question 37

Intergovernmental coordination

Answer 37

an intergovernmental coordination plan is required that states the principles and guidelines to be used in coordinating the adopted comprehensive plan with the plans of school boards and other units of local government providing facilities and services but not having regulatory authority over the use of land. In addition, the intergovernmental coordination plan must describe joint processes for collaborative planning and decision-making on population projections and public school siting, the location and extension of public facilities subject to concurrency, and siting facilities with countywide significance, including locally unwanted land uses.

Question 38

What is zoning?

Answer 38

Zoning is the division of land into separate categories of legally permitted uses. The city or county government enacts ordinances that prescribe various zones or districts, which are then applied to specific areas or parcels of land.

Question 39

Authority of zoning

Answer 39

Zoning regulations are an application of the police power of government, which is derived from the U.S. Constitution and conferred to the states. Subsequently, the states delegated the authority to the counties and local governments. The U.S. Constitution provides government with the power to regulate the citizens when such regulation is to promote or preserve the health, safety, morals, and general welfare of the community and its citizens.

Question 40

Purpose of zoning

Answer 40

Zoning can protect an owner from a loss in value due to the encroachment of undesirable uses of contiguous land. Zoning can also ensure that future land uses will be compatible. Development can be controlled so that adequate streets, sewer and water, utilities, schools, police and fire protection, and recreational facilities are provided as growth continues.

Question 41

Exclusionary Zoning is Illegal

Answer 41

Low-income or minority land users may not be prevented from buying real estate in certain areas. Any attempt to zone by using these criteria is referred to as exclusionary zoning and is illegal.

Question 42

Effects of zoning

Answer 42

Zoning can be used to regulate the use of land, lot sizes, types of structures that are permitted, architectural, and structural design, density, setbacks, and the height and bulk of buildings. Zoning is the primary tool that is used by planners to implement the comprehensive plan. Developers are often frustrated when confronted with restrictions on possible use and must proceed only after obtaining necessary permits. Ordinary citizens are afforded protection of their property values by restrictions on uses that would have an adverse effect on value. Speculators can sometimes profit by obtaining zoning charges that increase the value of their property.

Question 43

Property Value

Answer 43

Zoning can have an enormous effect on the value of property. A parcel zoned for residential use would have a value quite different than one zoned for industry; one zoned for apartments would have a much different value than one zoned for agriculture. Zoning and other government regulations account for a large portion of the total value of a parcel of real estate.

Question 44

Zoning classifications

Answer 44

- Residential - Industrial - Special Use - Commercial - Agricultural

Question 45

Residential

Answer 45

residential zoning is based on density and includes single- family homes, small multifamily structures, condominiums, and apartments. Density limits the number of dwelling units that are allowed per acre. Planners typically control density with lot size, setbacks, and lot coverage percentage limits. Residential development typically requires that 20 to 25% of the land area be reserved for streets, sidewalks, and common areas. Zoning subcategories allow for variations in density. Common classifications include low density, medium density, or high density.

Question 46

Industrial

Answer 46

industrial zoning is based on the degree or intensity of use. The control of pollutants, air emissions, wastewater discharges, and by-products such as noise, odor, smoke congestion, and chemicals that result from manufacturing or production processes are one function of industrial zoning. Bulk zoning is part of the industrial zoning process. The overall height and total land coverage of industrial structures is a concern when structures are being planned.

Question 47

Special Use

Answer 47

special use (public) zoning, applies to government-owned land for use as schools, courthouses, parks, and other public facilities.

Question 48

Commercial

Answer 48

commercial zoning is based on the degree or intensity of use. Parking requirements and improvement size and height are stipulated.

Question 49

Agricultural

Answer 49

agricultural zoning restricts use to agricultural production. Generally, the type of agricultural use is not specified. Raising cattle or growing crops would both be permitted.

Question 50

Zoning Board of Adjustment

Answer 50

Zoning laws can and do change in response to strong community and economic pressure. Information regarding zoning or zoning changes can be obtained from the local zoning office or the planning board. Local governments create zoning boards of adjustment to provide flexibility. The zoning board of adjustment conducts public hearings that deal with individual zoning requests. In some cases, an owner may request the zoning classification of his or her property to be changed to another use. In other situations, the owner may request only a variance or special exception. Owners can appeal adverse decisions to the courts.

Question 51

Variance

Answer 51

a request for variance is not a request to change the use of a property. Instead, it is a request to vary from the specific or literal interpretation of the ordinance. A variance may be granted when the ordinance imposes an undue hardship on an owner. For example, if zoning requires a minimum of 7,500 square feet to obtain a building permit, the owner of a 7,400-square-foot lot could apply for and, likely, receive a variance that allows construction on the smaller lot.

Question 52

Special Exception

Answer 52

a request for a special exception is a request to depart from the use as provided for by the zoning ordinance. Uses other than that specified that are not deemed to be undesirable or incompatible are listed in the ordinance. As an example, a church might be considered to be a special-exception use in a residential neighborhood.

Question 53

Nonconforming Use

Answer 53

A property use that predates current zoning and does not conform to current zoning is known as a nonconforming use. The goal of zoning is to eventually phase out uses that predate and conflict with current ordinances. Other nonconforming uses may be created by a change in zoning from one classification to another.

Question 54

Legally nonconforming use

Answer 54

a property’s use is legally nonconforming if the use was established prior to implementation of the current ordinance or a zoning change caused a previously conforming use to become a nonconforming use. The owner is allowed to continue the nonconforming use, subject to certain limitations. Each zoning ordinance contains a nonconforming use section that prescribes the conditions under which these uses are allowed to continue. The legal permission to continue a nonconforming use is called grandfathering. Nonconforming use provisions vary from one area to another. It is common to prevent an owner from rebuilding if a fire, flood, or other natural disaster destroys over 50% of a structure. Property owners who allow a property to deteriorate over 50% of their value usually cannot receive permission to renovate. Legally nonconforming commercial use may be lost as the result of an abnormal closing, where the owner discontinues operation for an extended time.

Question 55

Illegal nonconforming use

Answer 55

a property’s use is an illegal nonconforming use if the owner is in violation of existing zoning ordinances. This occurs if an owner changes the use without obtaining the necessary zoning changes, variances, or special exceptions.

Question 56

Building Codes and Health Ordinances

Answer 56

While zoning laws dictate how a property may be used, building codes establish the minimum standards for design and construction of buildings or structures. Every aspect of construction is covered by code, including electrical, plumbing, insulation, fire protection, support systems, and so on. Building codes become law when enacted by the appropriate government authority.

Question 57

Building Permits

Answer 57

a building permit is the authorization required for new construction or renovation. A building permit must be granted before the construction of a new or existing building can legally occur. Approval and issuance of a building permit usually requires the submittal of plans prepared by an architect or engineer. The building department ensures that the plans comply with the local building codes before issuing the permit. The building owner pays a fee for the building permit, which helps fund the process.

Question 58

Building Inspections

Answer 58

once a building permit is issued, work can begin. At various stages throughout the construction, inspections are scheduled. Building inspections are designed to ensure that the contractor is completing construction in accordance with the approved plans, and is in compliance with the building code. One example of an area that may be inspected is the insulation factor, or R-value, within the structure. R-value is a measure of thermal resistance. The higher the number, the better insulated the building will be. The building inspector will check to ensure that the contractor has installed the proper insulation to meet the building code.

Question 59

Certificate of Occupancy

Answer 59

upon completion of construction, a final inspection is performed. If all aspects of the plans and specifications have been met, a certificate of occupancy (CO) is issued. A certificate of occupancy (CO) is a document issued by the local government when work has been completed and final inspections passed. Issuance of the CO effectively closes the building permit and authorizes occupancy of the structure.

Question 60

Health Ordinances

Answer 60

in addition to building codes, city and county governments also enact health ordinances. Health ordinances are local rules or laws that are created to protect the general welfare of the citizens in the community. General areas of coverage may include: pets, air quality issues, outside burning, childcare centers, garbage disposal, restrictions on dangerous weapons, noise, nuisances, pest control, swimming pool barriers, and many others.

Question 61

Development of Regional Impact (DRI)

Answer 61

Control and limitation on the size and type of new developments has become necessary in order to ensure adequate public services are available, and to help guarantee an acceptable quality of life. No development that exceeds the guidelines established by the state can be approved for construction until a Development of Regional Impact (DRI) review has been performed. A DRI is any development that, because of its character, magnitude, or location would have a substantial effect on the health, safety, or welfare of the citizens of more than one county. Statewide standards, defined in F.S. 380.0651, determine whether projects such as airport construction, attractions and recreation facilities, office or retail development, and schools must undergo a review before approval can be obtained and development begun. The review process includes an evaluation of schools, police and fire protection, roads, air quality, and the effect on the environment. Included is an evaluation of projects that include residential, commercial, and industrial development.

Question 62

DRI review committees

Answer 62

are established and operate in much the same manner as city or county planning boards. Members are appointed to serve and are assisted by a professional staff of trained planners. These committees are also advisory in nature, with final approval made by the city or county government, subject to state guidelines. The federal government is not directly involved in the planning process, but has a powerful influence on development as the result of legislation that is related to the environment and transportation.

Question 63

Cluster Zoning, Planned Unit Development (PUD)

Answer 63

Planned unit development (PUD), also called cluster zoning, has become part of the zoning ordinances in most parts of the country, including Florida. The concept of planned unit development is an attempt to alleviate many of the problems that are associated with traditional zoning. Traditional zoning prescribes separate areas for different uses, thereby creating traffic congestion and an increased infrastructure requirement. Time-distance relationships between the neighborhoods where people live, work, play, go to school, shop, and find recreational facilities may be greater than necessary. Planned unit developments bring people closer to the amenities, services, and facilities they require. Under this concept, a large tract of land is designated for planned unit development rather than for a single use. The developer is required to submit a plan that combines residential single-family use with other uses, such as multifamily, condominiums, apartments, commercial, and even light industrial. A requirement for development must include a portion of land that is reserved for common area usage. To compensate developers for reserving land for common use, they are allowed a certain percentage of the development to include smaller than normal lots or zero lot line and patio homes to be built.

Question 64

Buffer Zones

Answer 64

are often built into a planned community. A buffer zone is a planned neutral space between two different types of zoning categories, buildings, or properties that is intended to minimize disturbances between potentially incompatible land uses. A buffer zone can be a tract of undeveloped land with trees or shrubbery or other areas that add enjoyment or value to the community such as parks or golf courses. Before a buyer executes a contract to purchase property that is located in a PUD where membership in a homeowners’ association is mandatory, and failure to pay membership dues may result in placement of a lien on the property, the buyer must be given a copy of the required Homeowner’s Association Disclosure form. The sales contract must contain in conspicuous type a clause containing the following language. A contract for the sale of property located in a PUD that does not comply with this disclosure requirement is voidable at the option of the purchaser.

Question 65

If the disclosure summary required by Section 720.401

Answer 65

Florida Statutes, has not been provided to the prospective purchaser before executing this contract for sale, this contract is voidable by buyer by delivering to seller or seller’s agent or representative written notice of the buyer’s intention to cancel within 3 days after receipt of the disclosure summary or prior to closing, whichever occurs first. Any purported waiver of this voidability right has no effect. Buyer’s right to void this contract shall terminate at closing.

Question 66

Environmental Impact Statement (EIS)

Answer 66

An environmental impact statement (EIS) is a report that is prepared to describe the effects that a proposed activity may have on the environment. This could include the effects on the physical environment, as well as the people in the area. Common items that are addressed include air, water, structures, environmental value, living organisms, as well as social, cultural, and economic aspects. An impact is a change. Change can be either positive or negative. An EIS may describe ways to mitigate or remove potential negative impacts.

Question 67

Flood Plain Designations

Answer 67

The Federal Emergency Management Agency (FEMA) was created by the Federal Flood Protection Disaster Act to provide directives as to where to build and not to build in coastal and floodplain areas. Flood hazard areas are identified as special flood hazard areas (SFHA), moderate flood hazard areas, or minimum flood hazard areas. There are four principal floodplain zone designations that are used to identify the potential for flooding in any given area: Zones V, A, B, and X. these areas, or zones, are dived and labeled on FEMA flood maps. Each zone has certain characteristics as to the probability or likelihood of flooding.

Question 68

Zone V

Answer 68

is a special flood hazard area that identifies the wave velocity (“V”) zone, which is the most hazardous flood zone. Zone V follows the coastline and into river mouths, bays, and estuaries. Properties located in this zone have the highest probability of flooding. As might be expected, these properties are subject to the highest flood insurance rates.

Question 69

Zone A

Answer 69

is a special flood hazard area and is the next most vulnerable zone with a high potential for flooding. Zone A constitutes the 100-year floodplain and is usually near a lake, river, stream, or other body of water. This means that there is a 1% chance that any property located in this zone will flood in any given year. The base flood elevation is the water surface level corresponding to a 100-year flood.

Question 70

Zone B

Answer 70

is a moderate flood hazard area and identifies the 500-year floodplain. This means that there is a 0.2% chance that any property located in this zone will flood in any given year. Zone B may be areas protected by levees, or shallow flooding areas with average depths of less than one foot.

Question 71

Zone X

Answer 71

is a minimal flood hazard area and is not considered to be a flood hazard zone. That does not meant the area will never flood. It merely means there is a low probability it will flood.

Question 72

Flood Maps

Answer 72

Flood maps are prepared and distributed by FEMA for every city and county in the United States. City maps must be obtained separately from county maps, as county maps do not include incorporated areas. Each city and county is required to adopt building codes that conform to FEMA specifications. Each FEMA floodplain designation has certain minimum construction requirements that must be incorporated into local building codes; no permit may be issued for construction that does not meet the FEMA minimum standards for each zone. Flood maps are limited as to the amount of detail they contain. Many streets are not shown, thereby making it difficult in many cases to isolate the exact location of a particular property. Thus, making a determination s to the flood zone in which a property is situated based on these maps is frequently impossible.

Question 73

Flood maps may be unreliable

Answer 73

Flood maps may be unreliable for other reasons. Many maps were prepared several years ago and are often based on outdated information. Experience has shown that these maps are frequently inaccurate. Consequently, real estate licensees should be aware of these limitations and not make decisions, recommendations, or statements based on flood maps. Licensees should never make definitive statements that concern the location of a property within a certain flood zone. Using them in real estate practice for anything other than general information can lead to serious legal consequences.

Question 74

Flood Insurance

Answer 74

The Federal Government underwrites flood insurance through FEMA. Seventy-five percent of all natural disasters are flood related. FEMA experience indicates that approximately 30% of all flood losses are sustained by properties that are located in Zones B and X. Homeowner insurance policies cover windstorm damage, but not flooding. Homeowners may obtain flood insurance through their local insurance carrier. Over 40% of purchasers of national flood insurance are in Florida. Flood insurance may be purchased for properties in any designated zone. Premiums are related to risk; therefore, premiums will be higher for properties located in an area designated as Zone V and lower for those located in a Zone X.

Question 75

Flood insurance for federal lending laws

Answer 75

Federal lending laws require any federally regulated lender to have a property covered by flood insurance when used as collateral for a loan if the property is located in either Zones V or A. Insurance is not required when properties are located in Zones B or X, although lenders may, in some cases, require insurance for properties that are located in Zone B or for those that may have experienced prior flooding.

Question 76

Construction Standards

Answer 76

FEMA establishes minimum construction standards for each flood hazard zone. Each city and county must adopt building codes that conform to these standards and must not permit construction that does not meet such minimums. Specifications include base-floor elevation requirements and materials that may be used in construction. Of particular importance are requirements for construction of residential properties located in Zone V, the velocity zone. Homes constructed in this zone are required to be built with the first floor above the base flood elevation by using elevated construction with an open area below the first floor. The open space below the living area can be enclosed only with breakaway materials and may not contain operating electrical equipment, electrical outlets, or plumbing fixtures. The lower level is to be used only for parking and storage. This area cannot be enclosed with permanent construction; breakaway walls are intended to give way and not impede the flow of floodwaters. Non-residential structures in Zone V must meet the residential requirements or must be made watertight below the base flood elevation.

Question 77

Properties which are constructed in flood Zone A must meet

Answer 77

established base elevation standards. These areas are identified on flood maps are “A E.” “E” means that FEMA has established a base elevation for that area. The base elevation can be met by the use of fill dirt or elevated construction. If elevated, construction requirements are different from for properties in Zone V. Properties located in floodplains designated as Zone B are considered to be at minimal risk and standards have not been adopted. Floodplains designated as Zone X are also low risk and no federal construction standards apply.

Question 78

FEMA makes periodic

Answer 78

inspections of the local permitting process in order to monitor compliance with construction and permitting standards. If a city or county is found to be in violation of FEMA standards, it may be in danger of FEMA withdrawing federal flood insurance coverage for all properties in that jurisdiction. Without this insurance, federally backed mortgage loans might be impossible to obtain, and, following a major hurricane, residents may find themselves without federal assistance in rebuilding.

Question 79

Significance to Real Estate Licensees

Answer 79

Construction standards and materials are specified for use in certain areas. Unless a licensee has the requisite training, experience, and knowledge, they should avoid making definitive statements that indicate a property conforms to applicable codes, especially with reference to residences located in what appear to be a Zone V. It has been estimated that as many as 30% of homes that were legally permitted and constructed in Zone V have subsequently had the area below the first floor illegally enclosed or had permanent construction installed by the homeowner. A licensee could incur serious liability should they represent these homes as being in compliance with code.

Question 80

Environmental Hazards

Answer 80

Environmental hazards are events or occurrences that have the potential to threaten the surrounding natural environment and adversely affect people’s health. Some hazards, such as asbestos, mold, lead paint, and radon gas are indoor hazards that typically affect the occupants of one structure. Other outdoor hazards, such as improper septic tanks, toxic waste in the soil, chemical contamination, and leaky underground storage tanks may have more far-reaching impact including contaminating water supplies. Additional hazards, such as termites or other wood destroying organisms (WDO) may cause structural damage or decay to a building over time. Purchasers of property may be required to obtain a WDO inspection prior to obtaining financing.

Question 81

By Florida Statute, a WDO

Answer 81

report is provided when a home or other structure is being sold and the mortgage lender or buyer requires the inspection as part of the transaction. If an inspection is performed for these purposes, the inspection must be reported on a particular state form. The WDO report generally includes subterranean termites or dry wood termites, and may include wood destroying beetles and wood decaying fungi. Carpenter ants and carpenter bees are not reportable on the state form.

Question 82

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Answer 82

The Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), known as “Superfund,” was enacted to address abandoned hazardous waste sites. The law was enacted in the wake of discovery of toxic waste dumps such as Love Canal and Times Beach in the 1970’s, giving the Environmental Protection Agency (EPA) the power to seek out those parties responsible for any release of toxic materials, and assure their cooperation in the cleanup. Potential buyers of property need to be aware that they may be liable for any contamination on the property, even though they were not involved in the actual polluting.

Question 83

The Superfund Cleanup Acceleration Act of 1998

Answer 83

requires purchasers of commercial property to perform a Phase I Environmental Site Assessment (ESA) to identify the existence of potential environmental issues. If potential issues are discovered, a Phase II ESA may be required. A phase II ESA requires collection of samples of soil, ground water, or possibly building materials for analysis of potential contaminants such as petroleum hydrocarbons, heavy metals, pesticides, solvents, etc. If contaminants are found, a Phase III ESA will be required to plan the remediation of the site.

Question 84

What action might the Secretary of the Department of Business and Professional Regulation take against a broker whose actions pose an immediate serious danger to the safety and welfare of the public?

Answer 84

Issue a summary suspension

Question 85

What can a broker be charged with who fails to pay a sales associate the share of a commission owed?

Answer 85

Conversion Conversion is transferring someone's property to someone else's use.

Question 86

A buyer who negotiates a contract to purchase property, takes possession and pays the property purchase price in installments, but does not receive the legal title until the full purchase price has been paid. What is this agreement called?

Answer 86

An installment contract, contract for deed, or land contract

Question 87

In Florida, the borrower will receive which of the following after paying off the full loan?

Answer 87

A letter of satisfaction

Question 88

Savings associations are regulated by which federal agency?

Answer 88

Office of the Comptroller of the Currency

Question 89

The purpose of the secondary market is to

Answer 89

buy and sell loan portfolios. The purpose of the secondary market is to circulate money throughout our economy by buying and selling loan portfolios. Secondary lenders neither make loans nor insure them

Question 90

The right of survivorship can be described as the right of

Answer 90

co-owners to automatically receive the interest of the deceased co-owner. The right of survivorship refers to surviving co-owners automatically receiving the interest of the deceased co-owner upon his or her death. The right of heirs to receive the co-owner's share of real estate as provided in the last will and testament is the right of inheritance. Tenancy in common is a term for an estate characterized by two or more people holding title to a property at the same time. Although an estate by the entireties is characterized by automatic rights of survivorship, this answer is too narrow.

Question 91

A buyer makes an offer without a deposit, but the offer is accepted by the seller. What interest has been created in favor of the buyer?

Answer 91

equitable title The buyer has an equitable right in the property but has not received the legal title.

Question 92

Bob has a provision in his mortgage that relieves the mortgagor from personal liability in the event of a default. This is called the:.

Answer 92

exculpatory clause. The exculpatory clause is a nonrecourse clause in a mortgage contract that prevents the lender from obtaining a deficiency judgment against the borrower when the proceeds from a foreclosure sale are insufficient to satisfy the unpaid balance on the mortgage loan.

Question 93

When the landlord dies, the estate for years:

Answer 93

is binding on the heirs

Question 94

A licensee violates a duty imposed by a listing contract. Which applies?

Answer 94

His or her license may be revoked. In the case of fraud, misrepresentation, and dishonest dealing, the usual action of the commission is to impose a penalty of revoction.

Question 95

When a mortgage loan is paid off in a title theory state, what will the lender will give the borrower?

Answer 95

A reconveyance deed In a title theory state the property is titled in the lenders name. Upon satisfaction of the mortgage, the lender will pass title to the buyer using a reconveyance deed.