Questions - Chapter 5

Question 1

The instrument used for recording restrictive/protective covenants is a:

A. plat.
B. master deed.
C. covenant.
D. declaration of restrictions.

Answer 1

5-1 D

Question 2

Deed restrictions that run with the land are which of the following?

A. ordinances
B. variances
C. declarations
D. covenants

Answer 2

5-2 D

Question 3

All of the following statements about restrictive/protective covenants are correct EXCEPT:

A. They must be reasonable.
B. They are enforceable even though not recorded.
C. They are not enforceable if contrary to law.
D. They provide for a general plan for development.

Answer 3

5-3 B

Question 4

Which of the following statements about land use controls is NOT correct?

A. Deed restrictions are a form of private land use control.
B. Public land use controls are an exercise of police power.
C. Subdivision covenants are a form of public land use controls.
D. Localities receive their power to develop long-range plans for growth and the power to zone from the North Carolina General Assembly.

Answer 4

5-4 C

Subdivision covenants are a form of private land use controls

Question 5

Restrictive/protective covenants are terminated in all of the following ways EXCEPT:

A. expiration
B. transfer of title
C. failure to enforce on a timely basis
D. abandonment

Answer 5

5-5 B

Question 6

Restrictive/protective covenants are enforced by which of the following?

A. zoning
B. injunction
C. police power
D. condemnation

Answer 6

5-6 B

Question 7

The type of zoning that permits a higher priority use in a lower priority zone is called:

A. exclusive use
B. nonconforming use
C. amortizing use
D. cumulative use

Answer 7

5-7 D

• Zoning ordinances provide either exclusive-use or cumulative-use.
• Exclusive-use zoning only allows uses specified in the zoning.
• Cumulative-use zoning allows more protected or higher categories not designated to be used ( the order of priority, highest to lowest, is residential, commercial and industrial.)

Question 8

Which of the following is NOT a permitted deviation from the standards of a zoning ordinance?

A. variance
B. nonconforming use
C. spot zoning
D. special use

Answer 8

5-8 C

Spot zoning changes the zoning it is not a deviation of the existing zoning.

Question 9

Which of the following is an illegal rezoning of a particular property solely for the benefit of the owner?

A. variance
B. nonconforming use
C. spot zoning
D. special use

Answer 9

5-9 C

Question 10

Which of the following statements about subdivision ordinances is (are) correct?

A. the purpose is to protect taxpayers from increased taxes caused by increased demand for services to subdivisions
B. the purpose is to protect developers during the development period from excessive costs and thereby to encourage residential development
C. the purpose is to provide uniformity of structures within the subdivision
D. all of the above

Answer 10

5-10 A

Question 11

Which of the following powers gives the government the right to zone?

A. power of eminent domain
B. police power
C. power of escheat
D. power of taxation

Answer 11

5-11 B

Question 12

Building codes require which of the following?

A. property report
B. PUDs
C. Certificate of Occupancy
D. statement of record

Answer 12

5-12 C

Question 13

Which of the following statements concerning the Interstate Land Sales Full Disclosure Act is correct?

A. The Act regulates sales of large parcels of unimproved land (over 5 acres) across state lines.
B. The Act is administered by the Environmental Protection Agency.
C. The Act is administered by HUD.
D. The Act only covers land with buildings on it.

Answer 13

5-13 C

Question 14

Exemptions to the registration requirements of the Interstate Land Sales Full Disclosure Act include all of the following EXCEPT:

A. subdivisions of fewer than 25 lots
B. lots offered only to building contractors
C. lots on which there is a building
D. subdivisions in which the lots are 4 acres or more

Answer 14

5-14 D

Question 15

John starts operating a five-unit apartment building in an area that has been zoned for a duplex only. John lists the property with Larry Listing Agent who eventually sells the property to Bob Buyer. Bob continues to operate the five-unit building for the next 20 years. Which of the following statements is correct?

A. John had a legal nonconforming use.
B. Larry was responsible for discovering and disclosing the situation to Bob.
C. John had a legal nonconforming use and Bob has obtained a legal nonconforming use.
D. John had a legal nonconforming use, Larry was responsible for discovering and disclosing the situation to Bob, and Bob has obtained a legal nonconforming use.

Answer 15

5-15 B

Question 16

Twenty years ago John constructed a duplex on a lot that permitted multiple family housing to be constructed. Five years ago this was changed by zoning laws to permit only single family house construction. Which of
the following best describes John’s rights for this property?

A. This is an example of an illegal use.
B. This is an example of a legal nonconforming use.
C. This is an example of a variance.
D. This qualifies as a special use exception.

Answer 16

5-16 B

Because the duplex was constructed legally it would be “grandfathered” into the new zoning rules and be considered a legal nonconforming use

Question 17

Which of the following statements concerning flood hazard areas is correct?

A. Real estate designated as being in a flood hazard area cannot be financed through any federally related loan program.
B. The Department of Housing and Urban Development issues maps that designate flood hazard areas.
C. There are currently no federal laws or regulations concerning flood hazard areas.
D. Flood insurance is available under the National Flood Insurance Program.

Answer 17

5-17 D

A. Any real estate financed through a federally related loan program MUST be covered by flood insurance provided through the The National Flood Insurance Program.
B. The Federal Emergency Management Agency (FEMA) issues maps designating flood hazard areas. The flood maps are maintained by the U.S. Army Corps of Engineers.
C. There ARE laws and regulations concerning flood hazard areas.

Question 18

A property owner is reimbursed for loss when:

A. a loss of property value is caused by a zoning change.
B. a property is taken under the power of eminent domain.
C. aesthetic zoning causes an undue hardship.
D. all of the above.

Answer 18

5-18 B

Question 19

A “public” street means that:

A. the NCDOT has approved the street plans prior to the subdivision plat being recorded.
B. it is publicly maintained but can be privately access such as a gated community.
C. it is publicly maintained and is publicly accessed.
D. it is not privately maintained.

Answer 19

5-19 A

Question 20

Which of the following statements concerning zoning ordinances is/are true?

A. Zoning ordinances must adhere to federal and state due process provisions.
B. Zoning ordinances must be reasonable and nondiscriminatory.
C. Zoning ordinances must provide for the health and safety of the general public.
D. All of the above.

Answer 20

5-20 D

Question 21

Clark has operated a small convenience store in a rural area for 20 years. Recent development has changed the rural area into a thriving residential area. The property the convenience store is located on is now zoned for residential only. Which of the following statements is true?

A. This is an illegal use and must be stopped.
B. Clark can expand the convenience store to sell gasoline.
C. Clark can continue operating the store but may be prohibited from rebuilding in the event the building is destroyed.
D. Clark must petition for a variance to continue doing business as a convenience store.

Answer 21

5-21 C

Question 22

Private land controls are enforced by:

A. deed restrictions.
B. the Interstate Land Sales Full Disclosure Act.
C. the Conner Act.
D. court injunction.

Answer 22

5-22 D

Question 23

A variance can be obtained in which of the following scenarios?

A. placing a factory in an area zoned for residential only
B. placing a daycare in an area zoned for residential only
C. changing the setback lines for an entire subdivision
D. none of the above

Answer 23

5-23 D

Question 24

The government regulates all of the following EXCEPT:

A. creation of subdivisions.
B. building codes.
C. subdivision regulations.
D. protective covenants.

Answer 24

5-24 D

Question 25

Which of the following requires a property owner to go before the planning commission?

A. a variance
B. a special use permit
C. a nonconforming use
D. all of the above

Answer 25

5-25 D

Question 26

All of the following are public land use restrictions EXCEPT:

A. building codes.
B. protective covenants.
C. zoning.
D. regional planning.

Answer 26

5-26 B

Question 27

Deed restrictions can be created by all of the following, EXCEPT:

A. deeds
B. statutes
C. written agreements
D. general plans of a subdivision

Answer 27

T5-1 B

Deed restrictions can come from individual deeds (such as a defeasible fee) from written agreements (such as homeowner’s covenants, conditions and restrictions) or from the general plans of a subdivision such as the HOA protective covenants. They are not created by statute and are not regulated or enforced by government bodies.

Question 28

The primary intent of a zoning ordinance is to:

A. ensure the health, safety and welfare of the community
B. generate revenue for the issuance of building pemits
C. limit the amount and types of businesses in a given area
D. limit encroachments created on adjacent properties

Answer 28

T5-2 A

Zoning and public use restrictions are part of the police power. The police power is the government’s ability to regulate for the health, safety and welfare of the public.

Question 29

Julie and Janelle Enterprises just purchased a vacant lot next to their dress shop. The new owners want to expand their business and hired an architect to draw up plans for the expansion. The plans extend the addition two feet beyond the setback requirements for that location. To construct the building legally, the owners must obtain a:

A. nonconforming use permit
B. license
C. variance
D. permit issued by state

Answer 29

T5-3 C

A variance usually issued by a Board of Adjustment provides a property owner relief from government restrictions such as zoning which can include setback requirements.

Question 30

Which of the following statements is correct regarding the Interstate Land Sales Full Disclosure Act? l. This act applies to the sale and lease of unimproved land. ll. If a development contains 25 or more lots, the developer must furnish to a prospective buyer a property report. IIl. The property report must be given to the prospective purchaser prior to signing a lease or sales contract.

A. l and ll
B. III only
C. l, II and lll
D. None of the above

Answer 30

T5-4 C

All three of these statements are true.

Question 31

A tire company has a manufacturing plant located in an area that has just been rezoned for residential use. The company is allowed to continue operating the plant under the new zoning classification. This would be an example of:

A. legal nonconforming use
B. conforming use
C. illegal use
D. application of spot zoning

Answer 31

T5-5 A

If a property previously complied with zoning requirements and the zoning is changed, the owner will generally be allowed to continue that use as a legal non-conforming use or “grandfathered” use. The owner does not have to take any action or obtain a variance in order to be able to do this.

Question 32

Aesthetic zoning would be an example of:

A. illegal use of police power
B. a greenway
C. spot zoning
D. conditional use

Answer 32

T5-6 B

Aesthetic zoning for appearance, styles, colors and design of buildings and areas is permitted.

Question 33

A city issued a building permit to a homeowner for the addition of a family room and additional bedroom with a full bath. Before the addition can be used as part of a dwelling:

A. no further permission from the city is needed
B. the adjacent neighbors must give written consent for the addition
C. the municipality must issue an occupancy permit
D. the municipality must finalize a special-use permit

Answer 33

T5-7 C

A certificate of occupancy is the last stage in any building or permit process. It verifies that the construction or improvements have been completed according to plans and permits and that the structure is habitable.

Question 34

Which of the following is true regarding “streets” in a subdivision? I. Real estate agents must disclose to buyers whether new subdivision streets will be public prior to the selling or conveying of a lot pursuant to NC disclosure laws. II. Purchasers must be informed of who has responsibility for maintaining the streets.

A. I only
B. II only
C. Both I and II
D. Neither I nor II

Answer 34

T5-8 C

In new subdivisions where streets have been created the prospective purchasers must be informed as to whether the streets are public or private and who has the responsibility for maintaining the streets.

Question 35

The enforcement of zoning requirements occurs by:

A. local homeowners’ associations
B. local municipalities through the Enabling Act
C. the NC Department of Transportation
D. local homeowners’ associations

Answer 35

T5-9 B

There is no statewide zoning requirements in North Carolina. Zoning requirements are left up to local municipalities under the NC Enabling Act.

Question 36

A comprehensive municipal master plan addresses all of the following items, EXCEPT:

A. zoning
B. public facilities
C. restrictive covenants
D. transportation and conservation

Answer 36

T5-10 C

Restrictive covenants are private agreements between groups of homeowners. They are typically created by the developer or HOA and are not drafted or created by the government so they would not appear in a city’s master plan.

Question 37

Cluster zoning that creates mixed-use areas has the primary benefit of:

A. allowing areas to expand rapidly
B. maximizing open space within developments
C. controlling the growth of neighborhoods
D. keeping all like properties in similar areas

Answer 37

T5-11 B

Cluster zoning, also referred to a mixed use zoning, allows several types of zoning in a given area. Examples would be PUD’s (Planned Use Developments) and MUD’s (Mixed Use Developments). Allowing different types of zoning creates more open space by concentrating development.

Question 38

A manufactured home park is located in an area that has been rezoned in a manner that now prohibits such use of the land. Which of the following best describes the status of the manufactured home park after the rezoning?

A. It will have to be removed since it now constitutes an illegal use.
B. It may be allowed to remain in existence as a non-conforming illegal use.
C. It may be allowed to remain in existence as a grandfathered use.
D. The municipality can now remove the park as a “nuisance”.

Answer 38

T5-12 C

The correct phrase is legal non-conforming use or grandfathered use and the park is permitted to remain.

Question 39

Devin is considering buying a property that is located near a major intercoastal waterway. The area has never been flooded, and the seller of the property has informed Devin that they have never had to obtain flood insurance on the property. The BEST course of action for Devin during the process of purchasing the property would be to:

A. Research the property’s history with the NC Department of Natural Resources.
B. Obtain a formal flood certification from FEMA based on the Army Corps of Engineers maps.
C. Get written verification from the seller regarding the property’s history.
D. Rely on the advice of his insurance professional regarding any flooding hazards.

Answer 39

T5-13 B

Flood certifications are required on property prior to the placement of a mortgage loan. The flood certification comes from FEMA and is not based on local or state maps, but FEMA maps created by the Army Corps of Engineers. Buyers should not rely on representations by the seller or others. The best course of action is to obtain a flood certification.