Unit 20 Quiz Questions

Question 1

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 13 years, but in 2021 they decided to have the shed and doghouse destroyed to improve the appearance of the neighborhood. 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, under the doctrine of laches, the neighbors lost the right to enforce the restriction due to their delay in asserting it.
d. No, covenants such as this are usually considered to be unenforceable restrictions on the free transfer of property.

Answer 1

No, under the doctrine of laches, the neighbors 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 2

A state delegates zoning powers to a municipality through

a. the Interstate Land Sales Full Disclosure Act.
b. eminent domain.
c. a comprehensive plan.
d. an enabling act.

Answer 2

An enabling act.

An enabling act is the way in which the state delegates authority to local officials to enact
rules to protect the public’s health and safety.

Question 3

A zoning ordinance could include

a. objectives for future development of the area.
b. racial composition of the neighborhood.
c. qualifications of architects used to design a project.
d. the maximum allowable ratio of land area to structural area.

Answer 3

The maximum allowable ratio of land area to structural area.

A zoning ordinance might include 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 4

A plat map is BEST described as

a. a detailed map that illustrates aesthetic preferences.
b. a detailed map that illustrates the geographic boundaries of individual lots.
c. a detailed map that illustrates where a variance might be allowed.
d. a map that encompasses an entire section

Answer 4

A detailed map that illustrates the geographic boundaries of individual lots.

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

Question 5

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

a. nonconforming use permit.
b. zoning permit.
c. conditional-use permit.
d. variance or zoning change.

Answer 5

Variance or zoning change.

Because the proposed building does not yet exist, it does not qualify for nonconforming use; a conditional-use permit is issued for a special use that meets certain standards. A variance, if granted, will permit the developer to use the property in a manner that is otherwise prohibited by the existing zoning

Question 6

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

a. Request that the zoning board declare the home to be a nonconforming use
b. Ask a court to grant an injunction against the zoning board
c. Seek a conditional-use permit from the zoning board
d. Apply to the zoning board for a variance

Answer 6

Seek a conditional-use permit from the zoning board.

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 7

The members of a partnership buy large tracts of vacant land, split them into smaller parcels, and build identical communities of single-family ranch-style homes surrounding a central shopping center. The partnership sells the homes to residents and leases space in the shopping center to merchants. The partnership is acting as

a. a developer only.
b. a subdivider only.
c. both a developer and a subdivider.
d. an assembler.

Answer 7

Both a developer and a subdivider

Subdividers buy undeveloped acreage and divide it into smaller lots. A developer improves the land, constructs homes or other buildings, and sells them. Developing is usually more complex than subdividing.

Question 8

Which of these BEST defines density zoning?

a. The mandatory use of clustering
b. The average number of units in a development
c. A restriction on the average number of houses per acre
d. A restriction on the average number of acres per parcel

Answer 8

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 subdivision

Question 9

Before granting a zoning variance, a zoning board of appeals must

a. hold a public hearing at which neighbors may voice their opinions.
b. conduct a door-to-door opinion survey of property owners adjacent to the proposed use.
c. check whether the landowner has been granted previous variances.
d. determine whether the proposed use will result in higher property taxes.

Answer 9

hold a public hearing at which neighbors may voice their opinions.

Both variances and conditional-use permits can only be issued after a public hearing.

Question 10

Common tests of a valid zoning ordinance include

a. vague provisions to allow for flexibility in future.
b. anticipation of future housing needs.
c. a discriminatory effect, but only to benefit members of one of the protected classes under
federal fair housing law.
d. likelihood that anyone would lodge a complaint about it.

Answer 10

Anticipation of future housing needs.

The comprehensive plan would seek to anticipate future housing needs.

Question 11

A business owns a 2,000-acre tract of undeveloped woodland surrounding a scenic lake. The tract is divided into 106 individual lots, ranging in size from 15 acres to 100 acres. The business hires telemarketers 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. The business must file a disclosure statement with HUD.
b. Because the business’s project is not fraudulent, it is exempt from the requirements of the
law.
c. This development project is exempt from the law because of the lot size exemption.
d. The project is exempt from the law because it is not being marketed outside a contiguous multistate region.

Answer 11

The business must file a disclosure statement with HUD.

The business 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.

Question 12

Zoning ordinances affect

a. unemployment numbers.
b. building occupancy rates.
c. style and appearance of buildings.
d. racial composition of neighborhood.

Answer 12

Style and appearance of buildings.

Zoning may not affect the racial composition of the neighborhood; it must apply in a nondiscriminatory way.

Question 13

A developer has included a playground and running trails between the commercial properties that border a subdivision and the houses in the subdivision. The recreational area is considered

a. aesthetic zoning.
b. a buffer zone.
c. a taking.
d. a nonconforming use.

Answer 13

A buffer zone

A buffer zone is a strip of land, such as a park, separating land dedicated to one use (commercial) from land dedicated to another use (residential).

Question 14

When an area was rezoned as residential, a store was allowed to continue business. This is an example of

a. a variance.
b. a nonconforming use.
c. a conditional-use permit.
d. an amendment.

Answer 14

A nonconforming use.

Because the store had been there legally before the zoning ordinance, it is permitted to continue operating, usually until its use changes or the building is destroyed

Question 15

Using borrowed funds to purchase investment real estate is an example of

a. depreciation.
b. leverage.
c. land-use planning.
d. active management.

Answer 15

Leverage

Leverage is the name for the technique of using a relatively low down payment and borrowed funds to purchase property.

Question 16

A subdivision declaration reads, “No property within this subdivision may be further subdivided for sale or otherwise, and no property may be used for other than single-family housing.” This is an example of

A. a restrictive covenant.
B. an illegal reverter clause.
C. R-1 zoning.
D. a conditional-use clause.

Answer 16

A restrictive covenant

The answer is a restrictive covenant. It is a restrictive covenant—in this case, a limitation placed on the entire subdivision by its developer and recorded with the plat of subdivision. It is an example of private land-use control.

Question 17

A landowner who wants to use property in a manner that is prohibited by a local zoning ordinance but which would benefit the community can apply for which of the following?

A. Conditional-use permit
B. Prescriptive easement
C. Occupancy permit
D. Property allowance

Answer 17

Conditional-use permit.

The answer is conditional-use permit. Conditional use is based on benefit to the community despite a deviation from zoning.

Question 18

Private land-use controls include

A. subdivision regulations.
B. covenants, conditions, and restrictions.
C. environmental protection laws
D. comprehensive plan specifications.

Answer 18

Covenants, conditions, and restrictions.

The answer is covenants, conditions, and restrictions. Restrictive covenants are private land-use controls.

Question 19

Under its police powers, a municipality may regulate

A. resident occupations.
B. ethnicity of owners.
C. building uses.
D.familial status.

Answer 19

Building uses.

The answer is building uses. Police powers may control the use, size, details of construction, and density of occupancy—but not who may own buildings.

Question 20

The purpose of a building permit is to

A. indicate the property is suitable for habitation.
B. maintain municipal control over the amount of building.
C. provide evidence of compliance with municipal regulations.
D.show compliance with restrictive covenants.

Answer 20

Provide evidence of compliance with municipal regulations.

The answer is 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 21

The use of borrowed money to finance an investment is called

A. leverage
B. appreciation.
C. depreciation
D. capital gain.

Answer 21

Leverage

The answer is leverage. As a rule, an investor can receive a maximum return from the initial investment by making a small down payment, paying a low interest rate, and spreading mortgage payments over as long a period as possible.

Question 22

Another name for depreciation is

A. cost recovery.
B. leverage.
C. capital gain.
D.inflation

Answer 22

Cost Recovery

The answer is cost recovery. Depreciation, or cost recovery, allows an investor to recover the cost of an income-producing asset through tax deductions over the asset’s useful life.

Question 23

To determine whether a location can be put to future use as a retail store, one would examine

A. the building code.
B. the list of permitted nonconforming uses.
C. the housing code.
D. the zoning ordinance.

Answer 23

The zoning ordinance.

The answer is the zoning ordinance. Zoning ordinances deal with the uses to which properties in various parts of the jurisdiction can be put.

Question 24

A legal deed restriction can include

A.allowable race of purchasers.
B. types of buildings that may be constructed.
C. citizen status of residents.
D.disposition of buildings to be constructed

Answer 24

Types of buildings that may be constructed

The answer is types of buildings that may be constructed. No deed restrictions may limit ownership or occupancy based on an individual’s race or national origin.

Question 25

A restriction in a seller’s deed may be enforced by which of the following?

A. Court injunction
B. Zoning board of appeal
C. City building commission
D. State legislature

Answer 25

Court Injunction.

The answer is court injunction. Deed restrictions are private land-use controls and can only be enforced by a suit for injunctive relief. The courts can prevent someone from violating a recorded restriction by issuing an injunction—forcing the violator to remove the violation or stop the activity.

Question 26

A property owner owns a large tract of land. After an adequate study of all the relevant facts, the owner legally divides the land into 30 lots suitable for the construction of residences. In this situation, the property owner is acting as

A. a subdivider.
B. a developer.
C. a land planner.
D. an urban planner.

Answer 26

A subdivider

The answer is a subdivider. Dividing land for later construction or sale is subdividing.

Question 27

A map illustrating the sizes and locations of streets and lots in a subdivision is called

A. a gridiron plan.
B. a survey.
C. a subdivision plat map.
D. a property report.

Answer 27

A subdivision plat map.

The answer is a subdivision plat map. A plat is a map. A subdivision plat is a map of a subdivision showing at least those details required by local subdivision regulations

Question 28

In one city, developers are limited by the zoning law to constructing no more than an average of three houses per acre in any subdivision. What does this restriction regulate?

A. Clustering
B. Gross density
C. Out-lots
D. Covenants

Answer 28

Gross Density

The answer is gross density. Public land-use controls commonly seek to control density—such as how many living units will be allowed per acre.

Question 29

Which of the following is a variance?

A. An exception to a zoning ordinance
B. A court order prohibiting certain activities
C. A reversion of ownership
D. A nullification of an easement

Answer 29

An exception to a zoning ordinance.

The answer is an exception to a zoning ordinance. A variance permits a use that does not meet current zoning requirements.

Question 30

Permitted land uses and set-asides, housing projections, transportation issues, and objectives for implementing future controlled development would all be found in a community’s

A. zoning ordinance.
B. comprehensive plan.
C. enabling act.
D. land-control law.

Answer 30

Comprehensive plan.

The answer is comprehensive plan. A community’s comprehensive plan seeks to address all these issues for the foreseeable future.

Question 31

The difference between the cost basis of property and its net selling price is

A. cost recovery.
B. appreciation.
C. leverage
D. capital gain.

Answer 31

Capital Gain.

The answer is capital gain. This is essentially the profit earned from the sale of an asset.

Question 32

A plat for a proposed subdivision is submitted to

A. the municipality.
B. the property owners.
C. the developer.
D. the state.

Answer 32

The municipality

The answer is the municipality. The plat for a proposed subdivision usually must be approved by the municipality before it can be recorded; when property does not fall within city limits, the county may have this responsibility.

Question 33

Restrictive covenants

A. are no longer effective when the title is transferred.
B. apply only until the developer has conveyed the title.
C. can be removed by a court of competent jurisdiction.
D. apply to and bind successive owners of the property.

Answer 33

Apply to and bind successive owners of the property.

The answer is apply to and bind successive owners of the property. The deed conveying a particular lot in a subdivision will refer to the plat or declaration of restrictions, thus limiting the title conveyed and binding all grantees.

Question 34

To protect the public from fraudulent interstate land sales, a developer involved in interstate land sales of 25 or more lots must

A. provide each purchaser with a printed report disclosing details of the property.
B. pay the prospective buyer’s expenses to see the property involved.
C. provide preferential financing.
D. allow a 30-day cancellation period.

Answer 34

Provide each purchase with a printed report disclosing details of the property.

The answer is provide each purchaser with a printed report disclosing details of the property. The printed report summarizes the developer’s detailed filing with HUD and reveals to the purchaser any legal and financial or physical difficulties the project is facing. Buyers who are not given this report can rescind the contract up to seven days after a copy is delivered or until settlement occurs.

Question 35

When is a certificate of occupancy issued?

A. When the owner of a multifamily residential property wishes to limit the number of individuals who may live in a single unit
B. At the time a property owner applies for a building permit
C. After building construction work has been inspected and found satisfactory by the municipal inspector
D. When an application for a variance or conditional-use permit has been granted by the zoning board

Answer 35

After building construction work has been inspected and found satisfactory by the municipal inspector.

The answer is after building construction work has been inspected and found satisfactory by the municipal inspector. The certificate of occupancy is necessary before a building can be occupied.