Chapter 4 - Public Regulation and Private Encumbrances

Question 1

Encumbrance

Answer 1

A claim, charge, or liability on property, such as a lien or mortgage that lowers its value.

Question 2

Zoning

Answer 2

Legitimate police power of government to regulate the use of real property.

Question 3

Building Codes

Answer 3

Public laws that regulate methods and materials to be used in the construction of improvements.

Question 4

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

Answer 4

Also known as Superfunds, this federal legislation created a trust fund designed to finance the activities of the Environmental Protection Agency and gave the Environmental Protection Agency the authority to recover cleanup costs for contaminated properties from the responsible parties for the contamination.

Question 5

Phase I

Answer 5

An examination of real property to determine if it contains environmental contamination.

Question 6

Phase II

Answer 6

A more intensive environmental examination of property, usually including the testing of soil and water for evidence of contamination.

Question 7

Eminent Domain

Answer 7

Power of the government to take private property for public use.

Question 8

Ad Valorem Taxes

Answer 8

Taxes assessed against an owner of real property in an amount based upon the value of the property.

Question 9

Lien

Answer 9

Money debt attached to real property. The holder of the lien can sell the real property to pay the debt.

Question 10

Judgment

Answer 10

Money debt resulting from a lawsuit. Judgments are liens on real property owned by the judgment debtor.

Question 11

Mechanic’s or Materialmen’s Lien

Answer 11

Lien imposed by law on real property to secure payment for work performed or materials furnished for the construction, repair, or alteration of improvements on the real property.

Question 12

Easement

Answer 12

Right granted to a nonowner of real property to use the real property for a specific purpose.