Real Estate National Test Ch 20

Question 1

D: Enabling Acts

Answer 1

States delegate to counties and local municipalities the authority to enact ordinances in keeping with general laws.

The degree to which governmental bodies seek to regulate land uses varies and is often a reflection of the priorities of local residents.

While there may be little objection anywhere to regulations that control noise, air, and water pollution, the topic of population density (lot and building sizes) can elicit strong reactions.

Question 2

D: Comprehensive Plan

Answer 2

AKA: Master Plan

The comprehensive plan, also known as a master plan, is not a regulatory document, but a guide that tries to anticipate changing needs.

The comprehensive plan usually is long term, perhaps 20 years or longer, and often includes

(a) a general plan that can be revised and updated more frequently,
(b) plans for specific areas, and
(c) strategic plans.

Question 3

What are the Systematic planning for orderly growth usually considers the following elements as part of the comprehensive plan. And explain.

Answer 3

1. Land use - determining how much land may be proposed for residences, industries, businesses, agriculture, traffic and transit uses, utilities, community facilities, parks and recreational facilities, floodplains, and areas of special hazards
2. Housing needs of present and anticipated residents, including rehabilitation of declining neighborhoods, as well as new residential developments.
3. Movement of people and goods, including highways and public transit, parking facilities, and pedestrian and bikeway systems
4. Community facilities and utilities such as schools, libraries, hospitals, recreational facilities, fire and police stations, water resources, sewerage, waste treatment and disposal, storm drainage, and flood management
5. Energy conservation to reduce energy consumption and promote the use of renewable energy sources

Question 4

The preparation of a comprehensive plan involves what?

Answer 4

surveys, studies, and analyses of housing, demographic, and economic characteristics and trends.

Question 5

The comprehensive plan is drafted by?

Answer 5

Planning commission

and approved by the city council or other governing body following a period for public comment at hearings held for that purpose.

Question 6

D: Zoning Ordinances

Answer 6

Implement the comprehensive plan and regulate and control the use of land and structures within designated land-use districts, in part by separating conflicting land uses.

If the comprehensive plan is the big picture, zoning provides the details that carry out the comprehensive plan.

Although no nationwide or statewide zoning ordinances exist, the federal government and the states regulate land use through coastal management, environmental laws, and scenic easements.

Question 7

Zoning affects such things as?

Answer 7

1. Permited uses of each parcel of land
2. Lot Sizes
3. Types of structures
4. Building Heights
5. Setbacks (the minimum distance from property boundaries that structures may be built)
6. Style and appearance of structures
7. Density (the ratio of land area to structure area)
8. protection of natural resources

Question 8

D: Planned Unit Development

Answer 8

AKA: PUD

Is a development where land is set aside for mixed-use purposes, such as residential, commercial, and public areas.

Zoning regulations may be modified for PUDs. PUDs tend to also be heavily regulated by private restrictions, including limitations on building design, materials, landscaping, and use.

Question 9

D: Buffer Zone

Answer 9

A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).

Question 10

Certain types of zoning that focus on special land-use objectives are used in some areas. These include

Answer 10

1. Bulk Zoning to control density and avoid overcrowding by imposing restrictions such as setbacks, building heights, and percentage of open area or by restricting new construction projects;
2. aesthetic zoning to specify certain types of architecture for new buildings;
3. incentive zoning to ensure that certain uses are incorporated into developments, such as requiring the street floor of an office building to house retail establishments.

Question 11

What makes a land-use legislation void?

Answer 11

Any land-use legislation that is destructive, unreasonable, arbitrary, or confiscatory usually is considered void. Furthermore, zoning ordinances must not violate the various provisions of the state’s constitution.

Question 12

Commonly applied tests in determining the validity of ordinances require that?

Answer 12

1. power be exercised in a reasonable manner
2. provisions be clear and specific
3. ordinances be nondiscriminatory
4. ordinances promote the public health, safety, and general welfare under the government’s police power
5. ordinances apply to all property in a similar manner

Question 13

D: Nonconforming Use

Answer 13

May be allowed to continue legally as long as it complies with the regulations governing nonconformities in the local ordinance, until the improvement is destroyed or torn down, or until the current use is abandoned.

If the nonconforming use is allowed to continue indefinitely, it is considered to be grandfathered into the new zoning.

Real estate professionals should never assume, nor allow their clients to assume, that an existing nonconforming use will be allowed to continue.

A prospective buyer should verify with the local zoning authorities the conditions under which the use is allowed to remain or whether changes are permitted.

Question 14

D: Conditional-Use Permit

Answer 14

AKA: Special-Use Permit

May be granted to a property owner to allow a special use of property that is defined as an allowable conditional use within that zone, such as a house of worship or daycare center in a residential district.

For a conditional-use permit to be appropriate, the intended use must meet certain standards set by the municipality.

Question 15

D: Variance

Answer 15

Will provide relief if a zoning regulation deprives an owner of the reasonable use of the property.

To qualify for a variance, the owner must demonstrate the unique circumstances that make the variance necessary.

In addition, the owner must prove that the regulation has caused harm or created a burden.

A variance might also be sought to provide relief if an existing zoning regulation creates a physical hardship for the development of a specific property.

Question 16

True or False & Why?

Zoning is a regulatory tool that helps communities regulate and control how land is used primarily as a vehicle for private enterprise growth.

Answer 16

False

Zoning is used to implement the comprehensive plan, which takes into account land uses, present and anticipated future housing needs, community facilities, and utilities.

Question 17

D: Building Codes

Answer 17

An ordinance that specifies minimum standards of construction for buildings to protect public safety and health.

Question 18

Explain Permits

Answer 18

A property owner who wants to build a structure or alter or repair an existing building usually must obtain a building permit.

Through the permit requirement, municipal officials are made aware of new construction or alterations and can verify compliance with building codes and zoning ordinances.

An inspector will closely examine the plans and conduct periodic inspections of the work to ensure that the construction complies with relevant ordinances and codes.

Once the completed structure has been inspected and found satisfactory, the building official will issue a certificate of occupancy or occupancy permit.

If the construction of a building or an alteration violates a deed restriction, the issuance of a building permit will not cure this violation.

A building permit is merely evidence of the applicant’s compliance with municipal regulations.

Similarly, communities with historic districts, or those that are interested in maintaining a particular look or character, may have aesthetic ordinances.

These laws require that all new construction or restorations be approved by a special board.

The board ensures that the new structures will blend in with existing building styles.

Owners of existing properties will need to obtain approval to have their homes painted or remodeled.

Question 19

D: Certificate of Occupancy

Answer 19

AKA: Occupancy Permit

The certificate of occupancy indicating that the property is suitable for habitation must be issued before anyone moves in and usually before a lender will allow closing.

Most municipalities allow for the transfer of property ownership without the need to comply with the most current building codes. The exceptions are usually for safety reasons.

Federal regulations may also be applicable, such as the design and construction requirements of the Americans with Disabilities Act (ADA).

Question 20

D: Subdivision

Answer 20

A tract of land divided by the owner, known as the subdivider, into blocks, building lots, and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.

Question 21

D; Subdivider

Answer 21

Is a person who buys undeveloped acreage and divides it into smaller lots for sale to individuals or developers or for the subdivider’s own use.

A subdivision ordinance will include provisions for submitting and processing a proposed subdivision.

Question 22

D: Developer

Answer 22

who may also be a subdivider, improves the land, constructs homes or other buildings on the lots, and sells them. Developing is generally a more extensive activity than subdividing.

Question 23

Explain Land Development Plan

Answer 23

Before the actual subdividing can begin, the subdivider must go through the process of land planning.

The resulting land development plan must comply with the municipality’s comprehensive or master plan.

Although comprehensive plans and zoning ordinances are not necessarily inflexible, a plan that requires a change to either must undergo a long, expensive, and frequently complicated process that will include public hearings and action by multiple governing bodies.

Question 24

D: Impact Fees

Answer 24

Are charged to protect local taxpayers against the costs of heightened demand for public services.

are charges made in advance to cover anticipated expenses involving off-site capital improvements, such as additional water and sewer facilities, new roads, and school expansions.

Question 25

D: Plat Map

Answer 25

From the land development and subdivision plans, the subdivider draws the plat map.

Is a detailed map illustrating the geographic boundaries of individual lots.

The plat map shows the lots, blocks, sections, streets, public easements, and monuments in the prospective subdivision.

The plat map may also include engineering data and restrictive covenants.

The plat map must be approved by the municipality before it can be recorded.

Once a plat map is properly recorded, it may be used to describe the individual parcels of real property.

A metes-and-bounds or government survey system description will pinpoint the location of the subdivision plat map on the surface of the earth, which will become part of its description.

Question 26

D: Density Zoning

Answer 26

Ordinances restrict the average maximum number of houses per acre that may be built within a particular subdivision.

Question 27

Explain how Density Zoning

Answer 27

Density zoning ordinances restrict the average maximum number of houses per acre that may be built within a particular subdivision.

If the area is density zoned at an average maximum of four houses per acre, for instance, the subdivider may choose to cluster building lots to achieve an open effect.

Regardless of lot size or number of units, the subdivider will be in compliance with the ordinance as long as the average number of units in the development, called its gross density, remains at or below the maximum density allowed.

Question 28

D: Deed Restrictions

Answer 28

Clauses in a deed limiting the future uses of the property.

Deed restrictions may impose a vast variety of limitations and conditions—for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.

Question 29

D: Restrictive Covenants

Answer 29

A clause in a deed that limits the way the real estate ownership may be used.

Question 30

D: Covenants, Conditions, And Restrictions (CC&Rs)

Answer 30

Private agreements that affect land use.

They may be enforced by an owner of real estate that benefits from them and can be included in the seller’s deed to the buyer.

CC&Rs are enforced by the homeowners association (HOA) that is set up by the developer and turned over to the homeowners when a specified number of properties has been sold.

Question 31

D: Interstate Land Sales Full Disclosure (ILSA)

Answer 31

The U.S. Congress created the Interstate Land Sales Full Disclosure Act (ILSA) to prevent fraudulent marketing schemes that may arise when land is sold without being seen by the purchasers.

The Act was amended by the Dodd-Frank Act in 2011 and its administration is now under the authority of the Consumer Financial Protection Bureau.

The statement of record must contain numerous disclosures about the property.

A developer is also required to provide each purchaser or lessee of property with a printed report before the purchaser or lessee signs a purchase contract or lease.

If the purchaser or lessee does not receive a copy of the report before signing the purchase contract or lease, the consumer may have grounds to void the contract

Question 32

What information must be on the Interstate Land Sales Full Disclosure?

Answer 32

1. Type of title being transferred to the buyer
2. Number of homes currently occupied on the site.
3. Availability of recreation facilities.
4. Distance to nearby communities.
5. Utility Services and charges\
6. Soil conditions and foundations or construction problems.

Question 33

Interstate Land Sales Full Disclosure Act has what exemptions.

Answer 33

1. Does not apply to subdivisions consisting of fewer than 25 lots
2. Those in which each lot is 20 acres or more.
3. Lots offered for sale solely to developers also are exempt from the act’s requirements.
4. Lots on which buildings exist
5. Where a seller is obligated to construct a building within two years.

Question 34

True or False & Why?

Zoning ordinances create the broad, general framework for a community; the comprehensive plan defines the details and implements the ordinances.

Answer 34

False

A comprehensive plan creates the broad, general framework for a community; zoning ordinances define the details and implement the plan.

Question 35

True or False & Why?

Bulk zoning ensures that certain types of uses are incorporated into developments.

Answer 35

False

Incentive zoning ensures that certain types of uses are incorporated into developments.

Question 36

True or False Why?

No uniform planning and land development legislation affects the entire country.

Answer 36

True

Laws governing subdividing and land planning are controlled by state and local governing bodies where the land is located.

Question 37

True or False & Why?

A conditional-use permit allows a landowner to use property in a way that is not ordinarily permitted by zoning, due to unusual hardship or deprivation of reasonable use by the regulation.

Answer 37

False

A variance provides relief if zoning regulations deprive an owner of the reasonable use of the property.

Question 38

True or False & Why?

Zoning permits are usually required before building permits can be issued.

Answer 38

True

Typically, a zoning permit is required before building permits are issued; the building permit allows municipal officials to be aware of new construction or alterations and can verify compliance with building codes and zoning ordinances.

Question 39

A subdivision built in 1980 included covenants, conditions, and restrictions (CC&Rs) in the deeds for all properties. One covenant bans “all outdoor structures designed for the storage of equipment or as habitations for any animals.” In 2008, a resident built a tool shed and a doghouse. The neighbors took no action for six years, but in 2014 they decide the shed and doghouse should be destroyed. Do the neighbors have any recourse?

A) Yes, they can go to court and sue for monetary damages for violating the covenant.

B) Yes, they can go to court and be awarded injunctive relief.

C) No, covenants such as this are usually considered to be unenforceable restrictions on the free transfer of property.

D) No, under the doctrine of laches, the neighbors probably lost the right to enforce the restriction due to their delay in asserting it.

Answer 39

D. No, under the doctrine of laches, the neighbors probably lost the right to enforce the restriction due to their delay in asserting it.

no, under the doctrine of laches, the neighbors probably lost the right to enforce the restriction due to their delay in asserting it. If the neighbors were concerned, they needed to act promptly to enforce the restriction.

Question 40

All of these could be included in a zoning ordinance EXCEPT

A) the maximum allowable ratio of land area to structural area.

B) permissible height and style of new construction.

C) style and appearance of structures.

D) objectives for future development of the area.

Answer 40

D. objectives for future development of the area.

A zoning ordinance might include restrictions for permissible height and style of new construction, style, and appearance of structures, and the maximum allowable ratio of land area to structural area, while objectives for future development of the area might be found in a comprehensive plan.

Question 41

A city passed a zoning ordinance that prohibits all commercial structures over 30 feet high. A company wants to build an office building that will be 45 feet high. In order to obtain permission for the building, the company may apply for?

A) a conditional-use permit.

B) a nonconforming use permit.

C) a variance or zoning change.

D) a zoning permit.

Answer 41

C. Variance or zoning change

Because the building does not yet exist, it does not qualify as a nonconforming use; a conditional- use permit is issued for a special use that meets certain standards.

A variance, if granted, will permit the company to use the property in a manner that is otherwise prohibited by the existing zoning.

Question 42

Flexibility, economy, and ingenuity in the use of land are promoted by enactment of

A) national land development legislation.

B) subdivision ordinances.

C) enabling acts.

D) restrictions on land use.

Answer 42

B. subdivision ordinances.

A subdivision ordinance will include provisions for submitting and processing a proposed subdivision, encouraging flexibility, economy, and ingenuity in the use of land.

Question 43

The purpose of a building permit is to

A) provide evidence of compliance with municipal regulations.

B) maintain municipal control over the amount of building.

C) indicate the property is suitable for habitation.

D) show compliance with restrictive covenants.

Answer 43

A. Provide evidence of compliance with municipal regulations.

A building permit is issued only after municipal regulations have been complied with.

It is, therefore, evidence of such compliance.

Question 44

Which of these BEST defines density zoning?

A) The average number of units in a development

B) The mandatory use of clustering

C) A restriction on the average number of acres per parcel

D) A restriction on the average number of houses per acre

Answer 44

D. A restriction on the average number of houses per acre

Density zoning ordinances restrict the average maximum number of houses per acre that may be built within a particular subdivision.`

Question 45

Specific information required to be disclosed in the report from a seller of property subject to the Interstate Land Sales Full Disclosure Act does NOT include

A) the population of nearby cities or communities.

B) availability of recreation facilities.

C) type of title being transferred to the buyer.

D) number of homes currently occupied on the site.

Answer 45

A. the population of nearby cities or communities.

The specific information required to be disclosed in the report from a seller of property subject to the Interstate Land Sales Full Disclosure Act does not include the population of nearby cities or communities.

Question 46

The Interstate Land Sales Full Disclosures Act is administered by

A) the Federal Trade Commission.

B) the Department of the Interior.

C) the Consumer Financial Protection Bureau.

D) the Department of Housing and Urban Development.

Answer 46

C. the Consumer Financial Protection Bureau.

With the passage of the Dodd-Frank Act in 2011, the Interstate Land Sales Full Disclosure Act is now administered by the Consumer Financial Protection Bureau.

Question 47

All of these are common tests of a valid zoning ordinance EXCEPT

A) clear and specific provisions.

B) a nondiscriminatory effect.

C) anticipation of future housing needs.

D) all property owners being affected in a similar manner.

Answer 47

C. Anticipation of future housing needs

The comprehensive plan would seek to anticipate future housing needs.

Question 48

A land use that has been grandfathered in is known as

A) an exception.

B) a special use.

C) a nonconforming use.

D) a variance.

Answer 48

C. A nonconforming use.

A nonconforming use also called grandfathering, allows the current use to continue even though it no longer complies with the current zoning.

Question 49

A homeowner would like to operate a business in the home, but is in an area zoned for residential use only. What should the homeowner do?

A) Ask a court to grant an injunction against the zoning board

B) Request that the zoning board declare the home to be a nonconforming use

C) Seek a conditional-use permit from the zoning board, if it is defined as allowable

D) Apply to the zoning board for a variance

Answer 49

C. Seek a conditional-use permit from the zoning board, if it is defined as allowable

The seek a conditional-use permit from the zoning board, if it is defined as allowable. A conditional-use permit might be granted in this situation if the intended use would not greatly impact the residential nature of the neighborhood.

Question 50

A company owns a 2,000-acre tract of undeveloped woodland surrounding a scenic lake. The tract has been divided into 106 individual lots, ranging in size from 15 acres to 100 acres. Telemarketers are hired to sell the lots to residents of the state and the three states with which it shares a common border. Based on these facts, how does the Interstate Land Sales Full Disclosure Act apply to the project?

A) This development project is exempt from the law because of the lot size exemption.

B) The project is exempt from the law because it is not being marketed outside a contiguous multistate region.

C) The company must file a disclosure statement with HUD.

D) Because the project is not fraudulent, it is exempt from the requirements of the law.

Answer 50

C. The company must file a disclosure statement with HUD.

The answer is the company must file a disclosure statement with HUD. The company must file the disclosure statement; the project is being marketed over state lines, it consists of more than 25 lots, and some lots are smaller than 25 acres.