Module 6 Quiz Flashcards
Which of the following limitations on ownership is not an exercise of government power?
A) special assessment lien
B) covenants
C) escheat
D) zoning ordinance
B) covenants
Unfortunately, Shelly died with no legal heirs or a will. Her home, a two-bedroom ranch, is worth over $225,000 and she had no outstanding debts. Her estate will most likely:
A) revert to the government by escheat and be liquidated at auction.
B) revert to the government to be used for low-income
housing through the process of lien.
C) be subdivided by the surrounding estates.
D) be liquidated at auction through the police power of government control.
A) revert to the government by escheat and be liquidated at auction.
Landlord Smith received a notice of a safety code violation at one of his apartment buildings. Under what category of government control does this fall? A) police power B) encumbrances C) escheat D) eminent domain
A) police power
After installing a heating and air conditioning unit in Jim and Mary’s house, Todd waited over 120 days for payment. Reluctantly, he filed a lien on the property but was dismayed to find out that he was in line with the bank, an equity company, and the county for payment of liens. Who has first priority to be paid?
A) The county for failure to pay property taxes.
B) The equity company, due to the fact that they filed several days before anyone else.
C) The bank because they are owed the most money.
D) Todd has first priority since homeowners are notified of the possibility of a mechanics lien before work is even started.
A) The county for failure to pay property taxes.
Government liens, in this case, the county government, have top priority to be paid before all other liens followed by mortgages, second mortgages, and then mechanics and other liens.
Jillian is appraising Mark and Sarahs soon to be
purchased home so that they can finance through Action Mortgage. Mr. Fergison the seller, is still occupying the home and agreed to show Jillian around on the agreed
upon inspection date. Mr. Fergison was more than eager to inform Jillian of everything he knew about the home from the oak flooring to the diameter and number of the trees in the established landscaping. He also told her about the new sidewalk which is scheduled to be constructed down the entire street a month after Mark and Sarah are to take possession of the home. He told her that the new buyers would have to pay for the cost of the concrete and the labor but that the results would
definitely add value to the final appraisal. The city is currently bidding out estimates for the labor to reduce the costs. When appraising this dwelling Jillian must:
A) estimate the cost of the sidewalk and labor herself by contacting local businesses and deduct this number from the appraised value.
B) take the quality of flooring and the mature landscaping into account when looking for comparables, but the sidewalk need not be addressed as it is not
yet in existence.
C) report the ad valorem tax on the addendum since the buyers will be paying for it themselves, and use comparables with similar sidewalks to the one that
is projected.
D) take the pending special assessment into account as it could negatively impact the appraised value.
D) take the pending special assessment into account as it could negatively impact the appraised value.
If a property sells between the time a special assessment becomes of record and the time it is actually levied, it is referred to as a pending special assessment.
A city may levy a(n) \_\_\_\_\_\_\_\_\_\_\_ for a sidewalk project. A) auxiliary assessment B) proprietary assessment C) public use assessment D) special assessment
D) special assessment
A grandfathered use is A) restricted use ownership. B) a variance. C) an example of spot zoning. D) legally nonconforming.
D) legally nonconforming.
In order to improve the value of her property, Terri recently tore down her rundown fence panels and replaced them with new vinyl ones. About a week after she completed the project, she received a notice in the mail from the city that her new fence was in violation of recent changes to the setbacks for corner lots and that she would be fined daily until she removed the fence. Terri was confused because she viewed her upgrade
as repairing an old fence since the line of it remained unchanged. Nevertheless, the city remained unmoved. The new fence was no longer grandfathered in as the old one had been. Eventually, the battle made it to
court. Terri obtained testimonies from her neighbors that they were in favor of the fence and she finally got special permission from the city to leave it in place. Terri’s new fence is an example of:
A) a zoning variance.
B) legally nonconforming to the current easement appurtenant.
C) a gross encumbrance change.
D) spot zoning.
A) a zoning variance.
Mike recently made plans to knock down his dilapidated one-car garage and build a new two-car with a large attic for storage in its place. He went to the city to get a building permit and was turned down because his garage was too close to the property line. When it was originally constructed approximately fifty years ago, there was not a setback in place. He was told he could add onto the garage, but if he knocked it down he would have to move it twenty feet into his yard. Mike’s garage is currently:
A) legally nonconforming because it conformed to the zoning at one time.
B) illegally conforming because it is grandfathered in.
C) legally conforming to the current easement in gross.
D) a zoning variance because the previous owner and builder of the garage
obtained a waiver of the rules.
A) legally nonconforming because it conformed to the zoning at one time.
A judgment has been placed against Mark after he was found at fault for an accident resulting in severe damage to another car and the hospitalization of its driver. In this case, what type of lien is placed against Mark’s property?
A) A specific lien because Mark must pay for the automobile and hospitalization awarded to the victim.
B) A specific lien because government liens must be paid before lis pendens in a judgment.
C) A general lien because all assets of the debtor are affected in a judgment.
D) A general lien because traffic accidents do not affect home values.
C) A general lien because all assets of the debtor are affected in a judgment.
Liens fall into two basic categories:
A) general and specific.
B) partial and total.
C) mechanic and property tax.
D) testate and intestate.
A) general and specific.
Which of the following is a lien?
A) deed restriction
B) encroachment
C) property tax
D) lease
C) property tax
Zoning is an example of:
A) police power.
B) eminent domain.
C) taxation.
D) escheat.
A) police power.
Comprehensive plans:
A) are for a specific property.
B) are future-oriented.
C) usually grandfather past uses.
D) are currently restrictive
B) are future-oriented.
As part of a special assessment, a new sidewalk was constructed on Cleveland Street and paid for by all the residents of the street, except the Burris family. As a result,:
A) a lis pendens will help the city take possession of enough collateral to pay for the sidewalk.
B) a government lien will be placed on the Burris property.
C) a mortgage lien will be placed on the Burris property and will have to be paid before they can make any more payments toward their home loan.
D) an equity lien will be placed on the property and the city will use the Burris equity to pay for the sidewalk.
B) a government lien will be placed on the Burris property.
