Chapter 7 Environmental Law and Land Use Regulation

Question 1

All of the following are provisions of a lease that a landlord can use to protect itself from environmental liability EXCEPT:

a. restrictions on use.
b. representations as to past use
c. notice provisions
d. right to inspect

Answer 1

b. representations as to past use

Question 2

What areas do zoning regulations commonly cover?

Answer 2

the height, number of stories, and size of buildings and other structures

the percentage of a lot that may be occupied

the size of yards and other open spaces

the density of population

the location and use of buildings, structures, and land for trade, industry, residence, or other purpose

Question 3

If a property’s general use predates the enactment of a zoning ordinance, the the zoning regulations generally provide a(n):

a. special fee
b. nonconforming use
c. variance
d. easement

Answer 3

b. nonconforming use

Question 4

If there are potential environmental issues in a landlord-tenant relationship, both parties have an interest in:

a. having a large security deposit requirement
b. completing a Phase I Assessment of the site
c. signing a covenant of quiet enjoyment
d. being liable for wear and tear damagaes

Answer 4

b. completing a Phase I Assessment of the site

Question 5

When a taking of property by eminent domain occurs, what must be paid?

a. taxes on taken land
b. interest on taken land
c. just compensation
d. market value and interest plus 10%

Answer 5

c. just compensation

Question 6

When is it necessary to remove asbestos-containing materials from commercial buildings?

Answer 6

It may be necessary to remove them if the asbestos containing materials are damaged or as part of a large scale renovation or remodeling project.

Question 7

Describe the scope of country’s environmental problem according to the EPA.

Answer 7

In 1980 there were 57 million tons of hazardous waste produced and 90% was disposed of in an unsafe manner.

There are 150,000 to 500,000 brownfields-underutilized commercial and industrial space

Question 8

Which of the following is TRUE about materials containing asbestos that are not likely to be disturbed?

a. they involve health risks that are great
b. those materials can be left alone under an approved plan
c. the materials must be removed by asbestos removal professionals
d. continued building-wide occupancy is a health hazard

Answer 8

b. those materials can be left alone under an approved plan

Question 9

As the property manager at the Ford Building, Judy became concerned about maintaining safe levels of exposure to radon. In doing some research, she discovered that:

a. federal authorities will shut down a building with more than 4.0 pico curies of radon per liter of air.
b. federal rules do not permit more than one trillionth of a curie of radon per liter of air in a building
c. federal regulations only focus on commercial and industrial properties
d. EPA recommends remedial steps if radon concentrations are greater than 4.0 pico curies per liter of air

Answer 9

d. EPA recommends remedial steps if radon concentrations are greater than 4.0 pico curies per liter of air

Question 10

What type of contamination may be discovered in land that once was a storage facility for electric transformers?

Answer 10

PCBs

Question 11

What is the purpose of superfine provisions enacted by many states?

Answer 11

A superlien is a lien that is granted to the government to encumber contaminated properties (or other properties of the owner) in order to provide compensation for cleanup costs. It takes priority over some or all existing and future interests in the property, including already perfected security interests.

Question 12

What will provide baseline information on the environmental condition of a site at the end of a lease?

Answer 12

A Phase I Environmental Site Assessment

Question 13

What is the primary purpose of a Phase II environmental site assessment?

Answer 13

The purpose is to focus on areas of potential contamination discovered during a Phase I Assessment.

Question 14

By 2005, the average cost of cleanup overseen by the EPA at National Priorities List site was:

a. $350,000,000
b. $3,500,000
c. $35,000,000
d. $350,000

Answer 14

c. $35,000,000

Question 15

If a tenant requests a Phase I Environmental Site Assessment after the end of its lease term, it is probably trying to protect against:

a. liability for damages in any past spill of hazardous waste
b. responsibility for not giving notice about any environmental hazards
c. future disputes about subsequently discovered environmental hazards
d. losing the option to have their lease renewed

Answer 15

c. future disputes about subsequently discovered environmental hazards

Question 16

What determines just compensation for land taken by the government?

Answer 16

Fair market value resolved through an agreement between the owner and the government or a trial

Question 17

What steps in the leasing process should a landlord take to provide protection against environmental liability?

Answer 17

Restrictions in use-limits what the tenant can use the land for.

compliance with environmental laws

notice provisions-requires the tenant to notify landlord of any releases of hazardous substances

right to inspect-landlord maintains the right to inspect the property

insurance and indemnification-tenant provides landlord with insurance to cover environmental risks posed by the tenant’s operations

restrictions on assignment and subletting

representations and warranties

Question 18

The Boyers are losing a portion of their property due to a power of the government to invoke eminent domain. this mean that:

a. a group of investors has bought 90% of the surrounding properties and can therefore force a sale.
b. the tenant can take over the property at a price it considers appropriate
c. the government is exercising its power to take over the property at a just price for public use without the owner’s consent
d. the owners are in arrears in their taxes, and the government is therefore seizing the property

Answer 18

c. the government is exercising its power to take over the property at a just price for public use without the owner’s consent

Question 19

Which of the following is NOT a way a landlord can protect itself from environmental liability?

a. complying with environmental laws
b. giving tenant notice about environmental hazards
c. requiring indemnification from a tenant
d. expanding a lease

Answer 19

d. expanding a lease

Question 20

What are the six terms that tenants should ensure are included in a lease in order to protect themselves?

Answer 20

Representations as to past use

Continuing compliance with environmental laws

Notice-tenant will want notice from landlord if there are spills or environmental hazards the landlord discovers during the term of tenant’s lease

Indemnification-protect landlord for costs associated with liability for tenant’s acts

termination provisions-tenant has the right to terminate the lease early if remediation efforts interfere with use of the property

Environmental Audit-shows the site was clean prior to and after the lease

Question 21

A company buys some property to develop and later discovers that the property was previously used for storage of electric company transformers and old batteries. this property is possible contaminated by:

a. lead and lead by-products
b. chemical fumes from cleaning materials
c. asbestos-containing materials
d. PCBs (polychlorinated biphenyls)

Answer 21

d. PCBs (polychlorinated biphenyls)

Question 22

Which of the following term describes a type of lien that takes priority over some existing and future interests in a property?

a. federal lien
b. category 3 lien
c. mandatory lien
d. superlien

Answer 22

d. superlien