TX 122 Real Estate Principles II-Lesson 4 Flashcards
What are public land use controls?
Local, state, and federal controls for long-term community welfare
These controls are designed to manage land use for the benefit of communities.
What is the role of a planning board or commission?
Responsible for guiding development or redevelopment for present and long-term needs
This includes overseeing the growth and development of communities.
What is a master plan?
A long-term plan that takes various factors into account for future development
Often referred to as a comprehensive plan.
What is an Environmental Impact Report (EIR)?
A report required for new developments to evaluate their environmental impact
EIRs can be costly and time-consuming, potentially leading to project abandonment.
What is zoning?
A system used by city and county governments to determine allowed land use
Zoning laws vary by locality and dictate what can be built on a property.
What is spot zoning?
Designating a small parcel for a unique use not allowed by the underlying zoning
This practice can create exceptions within zoning regulations.
What is a variance in zoning?
A permanent exception to zoning requirements for a specific property
Variances allow certain uses that differ from established zoning laws.
What is upzoning?
Changing zoning classification from a lower to a higher use
This typically allows for more intensive development.
What is downzoning?
Changing zoning classification from a higher use to a lower use
An example would be changing from commercial to agricultural use.
What is inclusionary zoning?
Requirements for a specific percentage of homes for low or moderate-income families
This aims to promote affordable housing within developments.
What is exclusionary zoning?
Zoning ordinances that result in economic or racial segregation
This can limit access for low-income families to certain areas.
What is incentive zoning?
Zoning that encourages developers to provide specific features in exchange for allowances
This can help achieve community goals while providing flexibility to developers.
What is bulk zoning?
A method to control density by restricting setbacks, building height, or open area ratios
This is used to prevent overcrowding in certain areas.
What is cluster zoning?
Zoning that allows flexibility in placing residences within a designated density area
This typically includes open space interspersed with residential units.
What is aesthetic zoning?
Zoning that requires new structures to match existing architectural styles
This aims to maintain a cohesive look within a community.
What is a nonconforming use?
Property that retains its previous use after a change in zoning
Nonconforming uses must comply with new zoning laws if they change use.
What does ‘grandfathered use’ mean?
Continued use of property as it was before new zoning ordinances were adopted
Existing uses can continue despite new restrictions.
What are building codes?
Rules determining the minimum acceptable level of safety in construction
These codes protect public health, safety, and general welfare.
What is the Certificate of Occupancy (CO)?
A document stating that a property meets building code requirements
A temporary CO indicates the space is habitable but not fully complete.
What is police power in land use?
The right to enforce land use rules for public health, safety, and welfare
Zoning is an exercise of police power by local governments.
What is eminent domain?
The government’s right to take private property for public use with compensation
This often involves condemnation and fair market value payment.
What is ad valorem taxation?
A tax based on the assessed value of property, a primary revenue source for local governments
This type of taxation funds public services.
What is escheat?
The process where property reverts to the state if there are no heirs or claims after death
This ensures property does not remain in limbo.
What is a mortgage?
A loan secured by the property that imposes limitations on its use
Mortgages typically restrict selling or conveying interest without settling the loan.
What are deed restrictions?
Limitations placed on property use by a previous owner
These can restrict uses such as alcohol manufacturing or development.
What is an encumbrance?
A right or claim by a third party that affects property title
Examples include liens, easements, and restrictions.
What are restrictive covenants?
CC&Rs that dictate permissible actions in a subdivision or development
These are enforceable limitations on property use.
What is the significance of the Kelo case?
A landmark case that expanded eminent domain for private development under the guise of public benefit
This case raised concerns about property rights and government overreach.
What is the Interstate Land Sales Full Disclosure Act (ILSFDA)?
A law requiring developers to register and provide property reports for interstate land sales
It protects buyers and allows them to rescind transactions under certain conditions.
How do environmental hazards affect real estate?
They can impact property value and the health of occupants
Real estate agents must identify and warn clients about these hazards.
What can greatly affect the sale and purchase of real estate?
Environmental hazards
Environmental hazards can also affect the health of individuals involved with the property.
What is the responsibility of real estate agents regarding environmental hazards?
To identify situations involving environmental hazards and warn clients about potential damage to health and property value.
What is formaldehyde?
A colorless, toxic, water-soluble gas with a pungent smell.
Name two sources of formaldehyde emissions.
- Urea-formaldehyde foam insulation (UFFI)
- Formaldehyde-based adhesives
What health issues can exposure to elevated levels of formaldehyde cause?
- Watery eyes
- Burning sensation in eyes and throat
- Nausea
- Difficulty breathing
- Impaired breathing
- Asthma attacks
True or False: Hazardous levels of formaldehyde gas are common in most buildings.
False
What is required from individuals who buy manufactured homes containing formaldehyde?
They must sign statements acknowledging the presence of formaldehyde-based materials.
How can property owners test for formaldehyde gas?
By hiring a professional or purchasing a testing device.
What are two methods to reduce formaldehyde gas pollution?
- Increased ventilation
- Sealing exposed surfaces with water-resistant sealants
What is radon gas?
An inert, radioactive gas that can enter a property from the ground, well water, or building materials.
What is the EPA’s stance on radon as a health risk?
Radon is the second leading cause of cancer in the U.S.
How does radon typically enter a building?
Through cracks in the foundation, openings around pipes, and from well water.
What is the primary testing method for radon gas?
An activated charcoal filter canister placed in the basement for 4-7 days.
What is asbestos?
A group of naturally occurring mineral fibers used in various products and building materials.
What serious health issues can result from inhaling airborne asbestos fibers?
- Asbestosis
- Lung cancer
- Mesothelioma
What is the most dangerous form of asbestos?
Friable asbestos
What must buyers and sellers do regarding asbestos presence?
Full disclosure is mandatory.
What are two primary economic risks associated with asbestos?
- Health-related lawsuits
- Lowered property value
What is a common remedy for asbestos issues?
Implementing an asbestos management plan or removal.
What are molds?
Microscopic fungi that grow in moisture-rich environments.
What conditions promote mold growth indoors?
- Excess moisture
- Nutrients
- Suitable surfaces
What are common health issues associated with indoor mold exposure?
- Nasal congestion
- Coughing
- Wheezing
- Eye irritation
How can mold problems typically be identified?
By visible growth or musty odors.
What should real estate licensees do when searching for mold problems?
Inspect the house, including attics, basements, and crawlspaces.
What are common signs of mold growth in buildings?
White, threadlike fibers, clusters of black spots, general musty odor, discoloration, leaching from plaster and drywall
Mold often grows in moisture-rich areas like kitchens and bathrooms.
What areas should licensees check for mold problems?
Attics, basements, crawlspaces, outside drainage systems, exhaust fans, heating and cooling systems
Proper ventilation is critical in humid areas to prevent mold growth.
What is the key to preventing mold problems?
Moisture control
Owners must maintain properties to minimize moisture.
Fill in the blank: The EPA suggests maintaining indoor humidity levels between _______.
30 percent and 60 percent
Keeping temperature above the dew point also helps reduce condensation.
What should be done to clean mold from hard surfaces?
Use a weak bleach solution
Absorbent surfaces may need replacement instead of cleaning.
What is lead?
A heavy, relatively soft, bluish-grey metal
It has been used in pipes, solder, and paint due to its durability.
What are common sources of lead exposure?
Lead pipes, lead-based paint, household dust, industrial emissions, lead-glazed pottery
Lead accumulates in the body and can cause serious health issues.
What is the primary health issue associated with lead exposure?
Lead poisoning
It can cause permanent brain damage and other serious health problems, especially in children.
What regulations were established regarding lead-based paint?
Sellers and lessors must inform buyers or tenants about lead-based paint hazards
This includes a disclosure form in leases and sales contracts.
What is the purpose of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?
To regulate hazardous waste sites and establish a trust fund for clean-up
Commonly known as the Superfund Act.
What does CERCLA define as a hazardous substance?
Materials designated as poisonous or dangerous under various environmental laws
The EPA maintains a list of over 800 hazardous substances.
What are some methods for preventing lead exposure in homes?
- Replacement of old materials
- Encapsulation
- Caustic and off-site chemical stripping
- Wet scraping
- Heat guns
Lead-based paint should only be removed by trained professionals.
What should renters do if they notice peeling or chipping paint?
Notify their landlord
Immediate actions can help reduce risks associated with lead-based paint.
What are the main goals when cleaning up a mold problem?
- Reducing moisture content in the air
- Increasing air movement
- Increasing temperature
These steps help mitigate mold growth.
True or False: It is possible to eliminate all mold spores from a building.
False
Complete elimination of mold spores is impractical in open structures.
What is the recommended action for moldy surfaces?
Clean thoroughly or replace materials if significantly infested
Simply painting over mold does not resolve the issue.
What is a significant risk factor for lead poisoning in children?
Children under seven are at the highest risk
Their bodies absorb lead more readily and are more sensitive to its effects.
What is the role of the EPA in relation to lead exposure?
Provides guidelines and regulations to minimize lead exposure
Publications such as ‘Protect Your Family from Lead in Your Home’ are part of their resources.
What is the importance of proper ventilation in areas prone to humidity?
Prevents mold growth
Exhaust fans in kitchens and bathrooms are critical for moisture control.
What does CERCLA maintain?
A list of over 800 hazardous substances, with additional substances classified as potentially hazardous.
Which substances are excluded from CERCLA’s definition of hazardous materials?
Petroleum and its derivatives, natural gas, natural gas liquids, synthetic natural gas usable for fuel, mining wastes, cement dust, and wastes from combustion of coal or other fossil fuels.
What is the primary purpose of CERCLA?
To allocate liability broadly among all parties involved with a waste site to discourage careless behavior.
Who are the four responsible parties under CERCLA?
- Current owner(s) and operator(s) of a vessel or facility.
- Any individual(s) who owned or operated that vessel or facility at the time of hazardous waste disposal.
- Any individual who arranged for the disposal or treatment of hazardous substances.
- Any individual who accepted hazardous substances for transport to a disposal or treatment facility.
What costs are responsible parties liable for under CERCLA?
- Costs of removal or remedial action.
- Other necessary costs for managing or remedying the hazardous waste incident.
- Damages for injury, destruction, or loss of natural resources.
- Costs of health assessments or health effects studies.
What does the term ‘owner or operator’ refer to under CERCLA?
The person or people who own, operate, or control a facility or vessel, presently or in the past.
What type of liability does CERCLA impose?
Strict liability and joint and several liability for clean-up costs.
What is the innocent landowner defense under CERCLA?
A provision that allows a defendant landowner to be found innocent of liability for toxic waste clean-up if the damages were caused by a third party and they had no knowledge of the contamination prior to property acquisition.
What did the Small Business Liability Relief and Brownfields Revitalization Act aim to clarify?
The confusion surrounding CERCLA’s ‘all appropriate inquiry’ provision.
What are brownfields?
Properties complicated by real or perceived environmental contamination or hazards.
What did the Brownfields Act require the EPA to issue?
A standard defining ‘all appropriate inquiries’ by January 2004.
What is the ASTM Standard E1527?
The standard for conducting a Phase I environmental site assessment for properties purchased after May 31, 1997.
What additional burdens does the Brownfields Act impose on landowners invoking the innocent landowner defense?
- Cooperate fully with EPA and state clean-up efforts.
- Provide access and assistance for response actions.
- Comply with land-use restrictions.
- Prevent hazardous releases.
What are polychlorinated biphenyls (PCBs)?
Mixtures of synthetic organic chemicals known for their useful properties, such as being good insulators.
What health issues are associated with PCB exposure?
- Acne-like skin conditions.
- Adverse effects on liver, reproductive, and nervous systems.
- Developmental problems in children.
- Potential carcinogenic effects.
How can families reduce the risk of PCB exposure?
- Avoid playing with old appliances.
- Stay informed about local PCB warnings.
- Discourage children from playing near hazardous sites.
What is an underground storage tank (UST)?
Any tank that has at least 10 percent of its volume below ground.
What does the Resources Conservation and Recovery Act (RCRA) aim to address?
Preventing, detecting, and correcting releases from underground storage tanks.
How many underground storage tanks (USTs) are currently in operation?
Approximately 676,000 USTs store petroleum and related products, and approximately 25,000 USTs contain hazardous substances.
What does the Resources Conservation and Recovery Act (RCRA) of 1976 require?
The RCRA requires the EPA to develop a comprehensive program of regulation and legislation aimed at preventing, detecting, and correcting releases from USTs.
What is the role of the Leaking Underground Storage Tanks (LUST) Trust Fund?
The LUST Trust Fund oversees clean-up and helps with funding when owners of defective tanks cannot be identified or cannot pay for damages.
What are electromagnetic fields (EMFs)?
EMFs are created by the flow of current in anything powered by electricity and can be emitted by devices like power lines and high-tension wires.
True or False: There is conclusive scientific evidence that EMFs cause cancer.
False
What may potential buyers ask regarding properties affected by EMFs?
Potential buyers may ask questions about EMFs and may request EMF testing as part of environmental audits.
What is the Common Enemy Doctrine?
The Common Enemy Doctrine gives property owners an absolute right to dispose of surface water as they see fit.
What does the reasonableness rule require from property owners?
The reasonableness rule requires property owners to use their property in a way that does not cause unnecessary damage to others.
Fill in the blank: Under the reasonableness rule, individuals will be held responsible for water damage if they have made an _______ change to their land.
unreasonable
What kind of damages may individuals responsible for water damage have to compensate?
- Expenses generated by the water damage
- Medical bills and mental anguish
- Repairs to damaged property
What may happen if a person intentionally diverts water onto a neighbor’s property?
They may be ordered to pay punitive damages in addition to compensatory damages.
What type of insurance may compensate for exterior water damage caused by a landowner’s actions?
Homeowners’ insurance may compensate for exterior water damage.
True or False: Homeowners’ insurance generally covers damage caused by naturally occurring floods.
False
What has been the impact of environmental protection legislation on human activity?
Virtually all human activity has some sort of environmental impact and is subject to environmental legislation.
Name one federal environmental law.
National Environmental Policy Act (NEPA)
What is the primary federal air quality law in the United States?
Clean Air Act
Intended to reduce and control air pollution nationwide, initially enacted in 1963.
What is the Clean Water Act’s main objective?
To restore and maintain the chemical, physical, and biological integrity of the nation’s waters
It includes funding for wastewater treatment and maintaining wetlands.
Define asbestos.
Naturally occurring mineral fibers used in building materials that pose serious health risks when inhaled
Linked to lung cancer, stomach cancer, and asbestosis.
What health issues are associated with black mold (Stachybotrys)?
Rashes, headaches, nausea, muscle aches, and fatigue
Mold growth is facilitated by poor indoor air circulation and the presence of water.
What is a brownfield?
A property with environmental contamination or hazards that may complicate its reuse or redevelopment
The Brownfields Revitalization Act provides incentives for revitalization.
What does CERCLA stand for?
Comprehensive Environmental Response, Compensation, and Liability Act
Also known as Superfund, it addresses hazardous waste management and cleanup.
What does the Endangered Species Act (ESA) aim to protect?
Endangered species and their habitats
It has led to illegal activities by some landowners trying to evade strict requirements.
What is an Environmental Impact Statement (EIS)?
A report predicting a project’s anticipated environmental effects
Required for federally-funded projects under the National Environmental Policy Act.
What is the role of the Environmental Protection Agency (EPA)?
To protect human and environmental health by regulating pollutants
Enforces laws like the Clean Air Act and Clean Water Act.
What is an Environmental Site Assessment (ESA)?
An investigation to identify environmental hazards affecting property use
Classified into Phase I, II, or III based on the likelihood of environmental damage.
What is a floodplain?
The area adjacent to a waterway that is subject to flooding
Homeowners may need flood insurance, as flooding is not covered by standard homeowners’ policies.
What is friable asbestos?
The soft or crumbling form of asbestos, more dangerous due to easier fiber dispersion
It poses a higher risk of inhalation compared to hard asbestos.
Define groundwater.
Water that exists underground in saturated zones beneath the land surface
Aquifers are rock materials that can supply usable amounts of groundwater.
What is lead poisoning?
A condition caused by high levels of lead in the body, potentially resulting in serious health issues
Particularly concerning in properties built before 1978 due to lead paint.
What is radon?
An inert, radioactive gas that is colorless and odorless, known to be a carcinogen
Can enter homes through cracks in foundations and building materials.
What are Underground Storage Tanks (USTs)?
Tanks buried underground that contain hazardous chemicals, regulated by federal law
Leaking tanks can contaminate groundwater supplies.
What is a waste disposal site?
Land or structures where waste is deposited, handled, or processed
Can pose health hazards if not properly monitored.
Define wetlands.
Areas inundated or saturated by surface or groundwater, supporting vegetation adapted for saturated soil
Include swamps, marshes, and bogs; protected under various environmental laws.
What is the significance of the TREC environmental addendum?
It allows buyers to obtain environmental assessments and reports on endangered species and wetlands
Provides a mechanism for buyers to terminate contracts based on adverse findings.
What does the National Environmental Policy Act of 1969 require?
Federally-funded projects must submit environmental impact statements outlining anticipated effects
Addresses various factors such as noise, air quality, and public health.
How does an Environmental Site Assessment differ from an Environmental Impact Statement?
ESA identifies environmental hazards on a property, while EIS evaluates environmental effects of a project
ESA is part of due diligence; EIS is mandatory for federal projects.
What is the primary purpose of an Environmental Site Assessment (ESA)?
To assess potential environmental hazards and liabilities associated with a property
An ESA is crucial for the innocent landowner defense under CERCLA.
How does an Environmental Site Assessment differ from an Environmental Impact Statement?
An ESA assesses environmental hazards, while an Environmental Impact Statement evaluates the potential effects of a project on the environment.
What are the three phases of site assessment?
- Phase I Assessment
- Phase II Assessment
- Phase III Program
What is involved in a Phase I Assessment?
A basic site assessment without taking materials or samples from the property.
What does a Phase II Assessment entail?
Examination of specific environmental problems, sampling of groundwater and soil, and evaluation of clean-up plans.
What distinguishes a Phase III Program from the other phases?
It is the most extensive assessment, requiring a detailed plan for site remediation and regulatory agency participation.
What should examiners review before inspecting a property?
Historical usage, old aerial photographs, chain-of-title searches, topographic maps, and old building plans.
What specific hazards do inspectors look for during a site inspection?
- Asbestos
- Lead-based paint
- UFFI (Urea Formaldehyde Foam Insulation)
Who should buyers and lenders hire to identify environmental hazards?
A specialist trained to find environmental hazards.
What is the role of environmental professionals in real estate transactions?
To assess environmental conditions and ensure compliance with environmental laws.
What are some obligations of licensees regarding environmental disclosures?
Disclose any known environmental conditions that could affect a buyer’s decision.
True or False: A landowner is relieved of liability for environmental problems simply due to ignorance.
False.
What should licensees do to protect themselves from nondisclosure charges?
Encourage early identification of problems and recommend professional counsel.
What is the significance of environmental assessments in commercial transactions?
They are a standard requirement to evaluate potential contamination.
What is ‘bankers’ environmental risk insurance’?
Insurance for lenders covering cleanup costs or loan balance in case of default due to contamination.
What do Fannie Mae and Freddie Mac require for multi-family loans?
A Phase I Assessment covering various hazardous contaminants.
What type of disclosure is required regarding lead-based paint?
Disclose the possible presence of lead-based paint, which is hazardous to children and pregnant women.
What must sellers of commercial property in Texas provide regarding mold damage?
A copy of each Certificate of Mold Damage Remediation issued in the past five years.
What is the purpose of zoning regulations?
To manage land use and ensure public health, safety, and welfare.
What should you do if the lot you want to build on is not properly zoned?
Obtain the proper zoning by filing an application for a zoning change.
What factors can complicate understanding environmental issues in real estate?
- Large number of environmental laws
- Overlapping laws
- Regulatory agencies involved
What should licensees disclose about natural factors affecting properties?
- Natural disasters
- Floodplains
- Wetlands
- Endangered species habitats
Fill in the blank: The innocent landowner defense requires an assessment under _______.
CERCLA.
What is a common requirement for appraisers evaluating properties for home loans?
Report any obvious contamination on or near the property.
What must you obtain if the lot you want to build on is not properly zoned for your proposed development?
Proper zoning by filing an application for a zoning change
The process takes approximately 12 weeks and includes two public hearings.
What are the primary zoning categories that counties classify land into?
- Residential
- Commercial
- Manufacturing
- Civic
- Industrial
Zoning determines how land may be used.
What is a Planned Unit Development (PUD)?
A development intended for large or complex projects under unified control, allowing single or multi-use projects with greater design flexibility
The minimum size generally considered appropriate for a PUD is ten acres.
What does a Specific Use Permit (SUP) allow?
Local zoning authority to approve uses based on site conditions and characteristics within zoning districts that do not currently allow the use ‘by right’
It is issued at the discretion of the City Council.
What is the typical process for getting a zoning change approved?
Public hearing process requiring public notification, public hearings, and final approval by the City Council
Requesting a Variance or a Permit can take much less time.
What mistake did Ms. Clover make in the transaction with Manny?
She relied solely on information from the listing broker without verifying its accuracy
This led to Manny being denied permits for his salon.
What principle must agents exercise when making representations about a property?
Reasonable care
This principle was reaffirmed in the case DeWolfe v. Hingham Centre Real Estate, Ltd.
What are the five elements a buyer must prove in a misrepresentation case involving a listing agent?
- Pecuniary interest in the transaction
- Supplied false information
- Caused a pecuniary loss
- Justifiable reliance on the information
- Failed to exercise reasonable care or competence
This is crucial for establishing liability.
What is the principle used by communities to ensure land development is financially viable?
Highest and best use
This principle maximizes the use of land and is often part of a strategic plan.
What beneficial effects do wetlands have?
- Filtering pollution out of water
- Controlling flooding
- Providing habitats for fish and other wildlife
- All of the above
This knowledge led to environmental legislation for the preservation of wetlands.
True or False: A zoning change can be requested by a single citizen without public support.
False
Depending on the community, a change in zoning may require that a number of citizens file a request or that the change be initiated by a public vote.
Fill in the blank: A request for a special use permit or a _______ is likely the easier way to change the way your property is zoned.
Variance
This option is generally cheaper and more effective.
