NC Real Estate Unit 6 -Land-Use Controls

The following two types of parcels are not considered subdivisions:

(1) a division of land if each parcel has more than 10 acres with no street right-of-way dedication (2) a division of land no larger than 2 acres into no more than 3 lots with no street right-of-way dedication involved, when the parcel is owned by a single entity.

factors considered when spot zoning:

(1) the size of the rezoned area—rezoning a single lot is more questionable than rezoning multiple tracts; (2) the degree of compatibility of the different zoning with the government's adopted plans for the area; (3) the impact of the rezoning on the landowner(s), neighboring landowners and the surrounding community; and (4) the degree of difference between the zoning of the surrounding area and the new zoning for the tract(s) in question.

nonconforming use

-odd building that's different from those around it but was grandfathered in (i.e. store in middle of neighborhood), can't be rebuilt if destroyed and can't be changed much -real property uses that were legally established before the adoption of the current zoning plan. This grand-fathered use is referred to as a legal nonconforming use A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area.

Zoning regulates and affects such things as

-permitted uses of each parcel of land, -lot sizes, -types of structures, -building heights, -setbacks (the minimum distance away from streets or -sidewalks that structures may be built), -style and appearance of structures, -density (the ratio of land area to structure area), and protection of natural resources.

Public land use is controlled and regulated through:

1. public restrictions—planning, zoning, building codes, subdivision plans; and 2. direct ownership of land by federal, state, and local governments.

Declaration of restrictive covenants

A declaration of limitations on the right to use land through a covenant in a deed or by reference to separate recorded declaration, established by a developer.

Certificate of Occupancy (CO)

A document issued by a building inspector that a building is ready and fit for occupancy.

Federal Emergency Management Agency (FEMA)

A federal agency responsible for disaster preparedness, response and recovery. Now under Department of Homeland Security.

conditional-use permit

A permit that allows a special use, such as a school or hospital, to operate in a neighborhood where it would otherwise be prohibited by the zoning.

cluster zoning

A type of zoning that allows a developer to provide the same number of housing units as traditional subdivision plans but with substantially increased tracts of open space. This is accomplished by slightly reducing the sizes of the individual lots and clustering the lots around varying street plans such as cul-de-sacs.

While showing a house listed as having four bedrooms and located outside of the city limits, the buyer agent notices that the newly renovated master suite was actually once just a basement. Based on her observations, the broker should do which of the following? A) Contact the county health department for a record of the property's septic permit. B) Assume the proper permits were issued for the renovations. C) Ask the listing broker if a septic permit was issued for up to four occupants. D) Recommend that her buyer clients request that the sellers have the septic tank serviced before closing if they want to make an offer.

A) Contact the county health department for a record of the property's septic permit. -The county health department maintains septic permits. Under these circumstances, it is likely this is a three-bedroom house.

FEMA has designated many areas bordering on rivers and streams as flood hazard areas, which are subject to federal regulations concerning improvements and construction in those areas. The lender will insist on appropriate flood insurance, which the buyer can purchase through most regular insurance companies that sell homeowners policies. What does FEMA stand for? A) Federal Emergency Management Agency B) Federal Emergency Mortgage Agency C) Federal Elections Management Agency D) Federal Emergency Mission Agency

A) Federal Emergency Management Agency

Which of these is a public land-use control and governmental right of the states to create and adopt regulations necessary to protect the public health, safety, and general welfare of the citizenry ? A) Police power B) Zoning C) English common law D) Escheat

A) Police power

Which of the following is NOT a governmental right in real property? A) To create deed restrictions B) To take abandoned land or any land deemed to be need for the public good C) To determine how land is used and developed D) To assess taxes

A) To create deed restrictions

The document confirming that a new building has met all the minimum building standards and that is the final regulatory step in the process of offering new construction for sale is called A) a certificate of occupancy. B) a building permit. C) a certificate of zoning. D) a building code.

A) a certificate of occupancy.** **A certificate of occupancy is the final step in showing that a new building meets minimum building standards.

The distance that a zoning ordinance requires between a property's boundaries and its improvements is A) a setback. B) a frontage. C) a range. D) a buffer zone.

A) a setback.** **The setback establishes the minimum distance between the boundaries and the improvements located on the property.

A master plan or zoning ordinance, once enacted, is bound to displease some property owners. Should they want to continue usage of their land in a different manner than is being enacted by the master plan, they could apply for a conditional-use permit or A) a variance. B) a best use permit. C) a waiver of real property. D) a variable use.

A) a variance.** **Generally, owners can appeal for either a conditional-use permit or a variance to allow a use that does not meet current zoning requirements.

Legislation designed to convert residential zoning into conservation or recreational purposes A) may be found by the courts to be a taking without the payment of just compensation to the property owner. B) has been determined by the courts to be an excessive use of police power and was therefore ruled as unconstitutional. C) is generally supported by special interest groups whose power might be greater than that of the courts. D) is usually supported by all the residents of a given area so that the majority rules.

A) may be found by the courts to be a taking without the payment of just compensation to the property owner.

Which of the following statements is FALSE about a broker's responsibility regarding land use? A broker: A) must know all of the protective covenants affecting a community. B) is expected to be able to recognize "red flag" situations regarding land use issues and to advise the parties involved of the potential problem. C) must avoid any representation about a property's zoning without verifying the property's zoning and, if appropriate, flood hazard area maps and any restrictive covenants affecting the property. D) is expected to be able to recognize patent signs of flooding on a property or when a property's location may make it susceptible to flooding.

A) must know all of the protective covenants affecting a community. -Under the North Carolina Real Estate License Law, a licensee has a duty to avoid any misrepresentation regarding permitted land use, to recognize potential land use problems, and an affirmative duty to discover and disclose any such problems. A broker is expected to avoid any representation about a property's zoning without verifying the property's zoning; be able to recognize "red flag" situations regarding land use issues; be able to recognize patent signs of flooding on a property; be aware of planned major highway or public transportation changes in the area.

It's not unusual to find real property uses that were legally established before the adoption of the current zoning plan. This use can apply to the way the land is used, the type of structure that is on the property, the way the structure is used, or even the lot size itself. This grandfathered use is called A) nonconforming. B) nullified. C) early opportunity. D) first father.

A) nonconforming.

A provision in a subdivision declaration used as a means of forcing the grantee to live up to the terms under which the grantee holds title to the land is a A) protective covenant. B) loss through laches. C) conditional-use permit. D) reversion clause.

A) protective covenant.** **A developer may establish limitations on the right to use land through a covenant in a deed or by reference to a separate recorded declaration, called a declaration of restrictive covenants. The term restrictive covenant is being replaced by the term protective covenant. Both have essentially the same meaning.

A broker is expected to be able to recognize situations regarding land-use issues, advise the parties involved of the potential problem, and recommend that the interested parties verify the permitted land uses. Recognizing and taking appropriate action with regard to potential problems with restrictive covenants is particularly important. These types of situations are called A) red flag situations. B) red light situations. C) red/white situations. D) red alert situations.

A) red flag situations.

Public land-use controls include all of the following EXCEPT A) restrictive covenants. B) environmental protection laws. C) subdivision regulations. D) master plan specifications.

A) restrictive covenants.** **Public land-use controls include planning, zoning, subdivision regulations, building codes, and environmental protection legislation.

An oral contract to convey title to real property is A) unenforceable. B) void. C) voidable. D) valid.

A) unenforceable.** **An oral contract for real property is unenforceable because of the language in the statute of frauds.

Which of the following statements is TRUE of zoning? Complete the following multiple-choice question. Keep in mind there may be more than one correct response. A.There are no nationwide or statewide zoning ordinances. B.Zoning ordinances must be free from discrimination. C.An illegal nonconforming use (or illegal use) is one that violates the zoning laws at the time it is put into place. D.The provisions of the master plan are implemented by zoning ordinances. E.Zoning ordinances must be static and unchanged. F.A zoning ordinance is a law imposed by local government authorities (such as cities and counties) that regulate and control the use of land and structures. G.Zoning ordinances generally divide land use into general use classifications such as residential, commercial, industrial, and agricultural. H.Most zoning ordinances violate the rights of property owners.

A.There are no nationwide or statewide zoning ordinances. B.Zoning ordinances must be free from discrimination. C.An illegal nonconforming use (or illegal use) is one that violates the zoning laws at the time it is put into place. D.The provisions of the master plan are implemented by zoning ordinances. F.A zoning ordinance is a law imposed by local government authorities (such as cities and counties) that regulate and control the use of land and structures. G.Zoning ordinances generally divide land use into general use classifications such as residential, commercial, industrial, and agricultural.

Americans with Disabilities Act (ADA)

Act addresses rights of individuals with disabilities in employment and public accommodations. The purpose of this legislation is to facilitate accessibility and mobility by ramp construction, safety rails, wider doors, and other accommodations. -doesn't apply to residential housing**

extra-territorial jurisdictions (ETJs)

Areas outside incorporated limits that are subject to the zoning restrictions of a municipality -Today, almost all cities have enacted comprehensive zoning ordinances governing the use of land located within corporate limits. North Carolina General Assembly has enacted legislation that allows a municipality to regulate development in areas adjacent to, but not within, the corporate limits. These areas outside the incorporated limits, but subject to the zoning restrictions of a municipality, are called extra-territorial jurisdictions (ETJs). -Population of the municipality will determine if the regulatory power extends one mile or up to three miles from the corporate limits.

buffer zones

Areas such as landscaped parks and playgrounds used to separate and screen residential areas from nonresidential areas

The purpose of the __________________________ is to facilitate accessibility and mobility by ramp construction, safety rails, wider doors, and other accommodations. A) Partnership for the Disabled Act (PDA) B) Americans with Disabilities Act (ADA) C) Disabilities Cooperation Act (DCA) D) Equality for All Act (EAA)

B) Americans with Disabilities Act (ADA)

Covenants or restrictions such as these usually relate to building type, use to which the land may be put, type of construction, height, setbacks, and square footage, and possibly cost. What are these called? A) Developer protections B) Declaration of restrictive covenants C) Protected classes D) Imposition restrictions

B) Declaration of restrictive covenants

The grantor of a deed may place effective restrictions on the I. right to sell the land. II. use of the land. A) I only B) II only C) Both I and II D) Neither I nor II

B) II only** **Deed restrictions may include the size of structures that can be built; the cost of structures that can be built; the number of structures that can be built; or even architectural

Which statement is FALSE regarding onsite septic system permits? A) The permit is valid for a specified period and is available through county health departments. B) The permit will describe maximum occupancy as three persons per permitted bedroom. C) The permit may limit the location of the system and/or uses that might overload the system. D) Buyers should determine a property's sewage disposal system and should be encouraged to obtain a soil suitability (perc) test for unimproved land.

B) The permit will describe maximum occupancy as three persons per permitted bedroom. -TWO persons per bedroom -To request onsite septic system testing, a person files an application with the county health department. A registered sanitarian from the health department will inspect the lot/tract. If the sanitarian finds that there is sufficient soil suitable for an onsite system, and enough land for a repair area, then an improvements permit will be issued. Once issued, the permit is valid for a specified period of time, so long as the property features or its proposed uses have not changed. The period of time the permit is valid varies from county to county. The septic permit will set a capacity limit for the system.

Which of the following BEST describes the purpose of a building permit? A) To serve as a means of regulating the area and size of buildings B) To provide evidence of compliance with municipal regulations C) To override or substantiate deed restrictions D) To control the volume of construction

B) To provide evidence of compliance with municipal regulations -Developers and property owners acquire building permits prior to new construction or improvements to existing structures to provide evidence that the construction complies with municipal regulations. The proposed construction must conform to local zoning and building codes, which usually requires that the project be inspected during phases of the construction or at the end of completion.

A broker is strongly cautioned to refrain from stating whether or not a particular use of the property will be allowed or if a certain act will be in violation of the covenants. If brokers state what they consider facts regarding the property that turn out to be in error, they risk A) a loss of their driver's license. B) a liability lawsuit. C) an angry spouse. D) a real estate board snub.

B) a liability lawsuit.

Aesthetic zoning would be an example of A) conditional use. B) an overlay district. C) illegal use of police power. D) spot zoning.

B) an overlay district.** **An overlay district is a zoning district applied over previously established zoning and establishing additional or stricter standards for covered properties in addition to those of the underlying zoning district. An overlay district commonly protects special features such as historic buildings and may be used for the overall aesthetic condition of the area.

Under the North Carolina Real Estate License Law, a licensee has a duty to avoid misrepresentation regarding permitted land use, to recognize potential land-use problems, and an affirmative duty to discover and disclose any such problem. An agent who is selling an area property is expected to know of A) any propensity for natural disasters to occur. B) any planned major highway or public transportation changes in the area. C) a coffee shop that will open within 500 feet of the residence in the next year. D) changes to elected officials in the next four years.

B) any planned major highway or public transportation changes in the area.

A municipality establishes development goals through its A) subdivision regulations. B) comprehensive master plan. C) environmental regulations. D) restrictive covenants.

B) comprehensive master plan. -A comprehensive master plan expresses and regulates public policies on land use, transportation, recreation, and housing. The plan establishes the community's development goals.

If a property being shown is near a creek or a river, a broker is expected to recognize patterns of A) mold. B) flooding. C) erosion. D) water fowl migration.

B) flooding.

Before making material changes to a property located within a ____________________, the owner must obtain a certificate of appropriateness from the appropriate regulatory entity. A) aesthetic zoning area B) historic preservation zone C) protective zoning district D) super zone

B) historic preservation zone** **The certificate confirms that the local historic preservation commission, or other appropriate entity, has approved of the changes to be made to the property.

There are no nationwide or statewide zoning ordinances because zoning is viewed as __________in nature. A) toxic B) local C) rural D) urban

B) local

Cities and counties develop long-range plans, often up to 20 years. These comprehensive plans that attempt to insure social and economic needs balanced against environmental and aesthetic concerns are called A) decade plans. B) master plans. C) holistic plans. D) 20-year plans.

B) master plans.

Zoning laws are generally enforced by A) nonissuance of building permits to properties that do not conform to zoning. B) the North Carolina Secretary of State. C) homeowner associations. D) restrictive covenants.

B) the North Carolina Secretary of State. -Zoning laws are generally enforced by requiring that building permits be obtained before property owners can build on their land. A permit will not be issued unless a proposed structure conforms to the permitted zoning, among other requirements.

treets, curbs, and sidewalks in a new subdivision are usually provided by A) the state. B) the developer. C) the municipality. D) the property owners.

B) the developer. -Subdivision plans are recorded with local officials, and streets, sewers, and utilities are installed. A developer of most new subdivisions must have streets approved, based on construction standards set by the North Carolina Department of Transportation, and must declare the streets to be for public or private use.

A broker is showing a condominium unit to a prospective buyer. The broker reads a statement describing the property to the buyer: "The unit is protected year-round by insulated walls done in 2017, a new roof done in 2018 and a maintenance staff that supports all of your needs." What should the broker suggest the buyer review regarding this statement? A) Permits from the maintenance staff B) Recorded liens at city hall C) Any and all association documents D) Bank account of current owner

C) Any and all association documents** **North Carolina purchase documents suggest that the purchaser should review restrictive covenants, if any, plus any governing documents for the subdivision or any established owners association, as part of the buyer's due diligence.

The use of privately owned real property may be regulated and restricted by A) state and federal government. B) individuals. C) all of these. D) local government.

C) all of these. -The regulation of land use is accomplished through public land-use controls, private land-use controls (deed restrictions), and public ownership of land—including parks, schools, and expressways—by federal, state, and local governments.

The owner of an unimproved lot wants to build a home. The owner's first step would be to A) obtain and record a plat map. B) apply for a certificate of occupancy. C) apply for a building permit. D) have the contractor dig the foundation.

C) apply for a building permit. -The first step in building is to obtain a building permit. Most communities require the issuance of a building permit by the city clerk or another official before a person can build a new structure or alter or repair an existing building on property within the municipality. The permit requirement allows officials to verify compliance with building codes and zoning ordinances as they examine the plans and inspect the work.

If the buyer of a vacant lot builds a house that violates the restrictions in the deed, the buyer may face all of the following types of enforcement EXCEPT A) being sued and required to pay damages to the other residents in the neighborhood. B) creating a cloud on the title to the property. C) being disciplined by the North Carolina Real Estate Commission. D) being sued and required to conform with the restrictions.

C) being disciplined by the North Carolina Real Estate Commission.** **The North Carolina Real Estate Commission only disciplines persons and entities licensed by the Commission for violations of license law or the Commission's rules. The Commission has no authority over violations of restrictions or covenants.

Straight-piping A) does not have to be disclosed to consumers. B) refers to the process of getting a soil suitability test quickly. C) refers to wastewater discharged directly into the yard or into a nearby creek or stream rather than into any approved treatment system. D) refers to a legal alternative to an underground onsite septic sewage system.

C) refers to wastewater discharged directly into the yard or into a nearby creek or stream rather than into any approved treatment system.

Which of the following statements regarding a purchase agreement is TRUE? A) The contract terms must be identical to the terms in the listing agreement. B) The contract conveys legal title when signed by both parties. C) The contract may be oral. D) The contract is binding on both parties.

D) The contract is binding on both parties.** **A purchase agreement is binding on both the buyer and the seller.

Whether subdivision streets are publicly or privately owned and maintained is A) information that is not critical to a buying decision. B) a required disclosure of the developer on any resale transactions. C) information that a broker must disclose only in new construction transactions. D) a material fact that must always be disclosed by a real estate broker.

D) a material fact that must always be disclosed by a real estate broker.

When selling a property that is under restrictive covenants, a broker making assumptions about allowed activities or uses based on what other property owners have done is a recipe for a liability suit. If the restriction is unclear from the covenants, and there is uncertainty about a proposed land use, the prospective buyer should consult A) a surveyor. B) a current resident. C) a council member. D) an attorney.

D) an attorney.** **When viewing the properties surrounding the potential purchase, some aberrant uses may have been legally grandfathered in (legal nonconforming use), and some may be violations of the current covenant (illegal nonconforming use). Simple things like flying a flag may be against restrictions, but some may do it anyway and accept a fine.

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

D) apply to and bind all successive owners of the property. -Restrictive covenants attach to the property itself and "run with the land," binding all subsequent purchasers, heirs, and assigns.

A buyer wants to use a residential property for a small business. Before closing, the buyer should A) apply for a special-use permit. B) apply for a sales tax license. C) call an attorney to request a variance. D) call zoning to determine whether the use is allowed.

D) call zoning to determine whether the use is allowed** **The buyer is expected to verify that the zoning of the property will meet the intended use.

The type of residential subdivision zoning that would maximize open space would be A) spot zoning. B) multiuse zoning. C) aesthetic zoning. D) cluster zoning.

D) cluster zoning.** **In cluster zoning, a developer can provide the same number of housing units as traditional subdivision plans but with substantially increased tracts of open space. This is accomplished by slightly reducing the sizes of the individual lots and clustering the lots around varying street plans, such as cul-de-sacs.

All of the following are governmental powers EXCEPT A) escheat. B) zoning. C) taxation. D) deed restrictions.

D) deed restrictions.** **Deed restrictions are private restrictions on the use or sale of a property.

When other property owners in an established subdivision wish to remedy a violation of a restrictive covenant by a neighbor, they should A) write the city council. B) appeal to the zoning commission. C) complain to the developer. D) hire an attorney and sue the offender.

D) hire an attorney and sue the offender.** **Subdivision restrictions give the owners association and each lot owner the right to apply to the court for an injunction or legal action to prevent a neighboring lot owner from violating the recorded restrictions. If granted, the court injunction directs the violator to stop or remove the violation on penalty of being in contempt of court.

The property report required by the Interstate Land Sales Full Disclosure Act, would NOT need to include A) existence of liens. B) soil conditions affecting foundations. C) number of homes currently occupied. D) original purchase price paid by developer.

D) original purchase price paid by developer. -Before signing a purchase agreement or lease, the Interstate Land Sales Full Disclosure Act requires the developer to furnish prospective buyers or lessees with a property report containing all essential information about the property, such as: -distance over paved roads to nearby communities, -number of homes currently occupied, -soil conditions affecting foundations and septic systems, -type of title a buyer receives, and -existence of liens.

Tests commonly applied in determining the validity of zoning ordinances require all of the following EXCEPT A) that the ordinance be free from discrimination. B) that the power be exercised in a reasonable manner. C) that the ordinance apply to all property in a similar manner. D) that the ordinance causes a loss of property value for the public good.

D) that the ordinance causes a loss of property value for the public good. -Tests commonly applied in determining the validity of ordinances require that the power be exercised in a reasonable manner; the provisions be clear and specific; the ordinance be free from discrimination; the ordinance promote public health, safety, and general welfare under the police power concept; and the ordinance apply to all property in a similar manner.

Straight-piping is a legal method of wastewater disposal. True False

False

The purpose of the Americans with Disabilities Act (ADA) is to make sure that residential properties are accessible. True False

False

A broker can assume that a use is lawful based on what the current property owner is doing. True False

False A broker should not assume that a use has been legally grandfathered in. Brokers and consumers should consult with the appropriate resources if there is any uncertainty about land use. -NEVER MAKE ASSUMPTIONS ABOUT LAND USE

Restrictive covenants are laws imposed by local government authorities. True False

False Restrictive covenants are requirements imposed by neighborhoods in order to maintain resale value. Zoning ordinances are government-authorized laws.

Master plans often have the impact of destabilizing property value. True False

False** Master plans often have the impact of stabilizing property value because the plan includes coordination of civic plans and developments to ensure orderly city growth.

Once a completed structure has been inspected and found satisfactory, a building inspector will issue a certificate of reasonable value. True False

False** Once a completed structure has been inspected and found satisfactory, a building inspector will issue a certificate of occupancy.

Nonconforming use refers to properties that are rezoned to permit use different from neighboring properties. True False

False** Spot zoning refers to properties that are rezoned to permit use different from neighboring properties. Nonconforming use, by contrast, refers to the way that land and/or a structure is used that is no longer consistent with the current zoning plan but was legally established before the plan's adoption.

The primary method by which local governments recognize development goals is zoning. True False

False** The primary method by which local governments recognize development goals is through the formulation of a master plan. Zoning is a part of the process of implementing the master plan.

property report

Government-required information (all the essential info about the property) that must be given to purchasers in subdivisions. Info such as: -distance over paved roads to nearby communities, -number of homes currently occupied, -soil conditions affecting foundations and septic systems, -type of title a buyer receives, and -existence of liens.

flood hazard areas

Locations specified on Federal Emergency Management Agency (FEMA) maps indicating areas that are subject to flooding. The seller's agent is required to inform potential buyers if the agent has knowledge that a property is located in such an area. -flood insurance is required under the National Flood Insurance Program (NFIP) if a federally related mortgage loan is to be used for properties within those areas. -Flood insurance is a separate policy from the federally operated NFIP but is brokered through local insurance companies.

building permit

Most communities require the issuance of a building permit by the city clerk or another official before a person can build a new structure or alter or repair an existing building on property within the municipality. -The permit requirement allows officials to verify compliance with building codes and zoning ordinances as they examine the plans and inspect the work.

Onsite Septic Systems

North Carolina state law requires that every residence and place of public assembly have an approved system for sewage disposal. -no septic system = property has way lower value, so something brokers should research -Under state law, county health departments are responsible for approving underground systems, whether a conventional subsurface system with a tank and drainage field, or the more complicated low-pressure pump system. -Systems that discharge above the ground, such as spray-irrigation systems, or systems that discharge into streams or waterways are regulated by the North Carolina Department of Environmental Quality. Off-site and community systems that serve more than one lot also are regulated at the state level.

Highway Access Restrictions

Realtor should make sure that public roads access is available. If any streets are being added to the neighborhood, realtor is to notify the client If any government entity takes away road access, the owner must be compensated under eminent domain. If there is any planned construction of new highways, freeways, loop roads, etc., real estate brokers are expected to be aware of this and make full disclosure to any potential customer or client.

building codes

Standards for construction and safety of buildings -enforced by local building inspectors certified through NCDI -These building codes set the requirements for kinds of materials, sanitary equipment, electrical wiring, fire prevention standards, and the like.

master plan

The primary method by which local governments recognize development goals is through the formulation of a comprehensive master plan, also commonly referred to as a general plan.

Private land-use controls

The regulations of land use by individuals or non government organizations in the form of deed restrictions, and restrictive covenants. -put in place by individual developers or property owners, usually when they transfer property. -EX: property may be conveyed on the condition that it is used only as a bird sanctuary.

Interstate Land Sales Full Disclosure Act

To protect consumers from fraudulent and "overenthusiastic" sales promotions in interstate land sales, Congress passed this act The law requires those engaged in the interstate sale or leasing of subdivision lots (including condominiums, cooperative units, and campsites) to file a statement of record and register the details of the land with HUD. (The Act exempts the sale of lots in a subdivision containing fewer than 25 lots. Interstate sales or leasing activities include out-of-state mailers, newspaper ads, television advertising directed to out-of-state buyers, and out-of-state telephone solicitation. Brokers involved in interstate selling of lots across state lines that come under this Act should seek legal advice to ensure full compliance.)

A subdivision developer will transfer the covenant enforcement rights to an established owners association at a predetermined time. True False

True -Generally, a subdivision developer will transfer enforcement rights once the development has been sold to new owners, but it can be at any predetermined time.

A broker is expected to recognize obvious signs of flooding on a property or when a property's location may make it susceptible to flooding. True False

True -Under North Carolina real estate license law, a licensee does have an obligation to recognize potential land-use problems., major "red flag situations" -ONLY thing you gotta know about land use is flooding

Public land-use controls include planning, zoning, subdivision regulations, and building codes. True False

True Public land-use controls do include planning, zoning, subdivision, regulation, and building codes.

Deed restrictions can be more restrictive on an owner's use than zoning ordinances. True False

True** **Deed restrictions can be more restrictive on an owner's use than zoning ordinances. When zoning ordinances and deed restricts conflict, the more restrictive of the two takes precedence.

void vs voidable

Void = illegal and unenforcible voidable = legal and enforceable

spot zoning

When a particular property or group of properties is rezoned to permit a use different from the neighboring properties' use -image: "X" is zoned single-family residential, which does not fit in with the uses made of other surrounding properties, all of which are zoned for commercial or industrial use. This chart shows that the owners of "X" should probably legally fight the classification of their property as single-family residential. The community has singled them out for treatment that is unconstitutional.

Aesthetic zoning

Zoning ordinances that regulate the appearance of real property, such as exterior color, exterior construction material, required screening and fencing. -In North Carolina, an area can be zoned strictly for aesthetic or appearance considerations. Therefore, a property's value can be increased or decreased for the public good of an aesthetically-pleasing neighborhood. Exterior surfaces of structures being restricted to a particular color palette or construction material would be an example of aesthetic zoning.

overlay district

a type of zoning that is superimposed over another type of zoning. The overlay zone can modify the use of the original zone. -A common example is when an area that is zoned single-family residential is also designated as a flood zone. This means that additional restrictions and regulations are imposed on developments and improvements in that area. Two other examples of overlay districts are historic preservation and aesthetic zoning.

subdivision

all divisions of a tract or parcel of land into two or more lots, building sites, or other divisions for the purpose of sale or building development (whether immediate or future) and includes all division of land involving the dedication of a new street or a change in existing streets.

variance

allow a deviation from an ordinance due to unique circumstances To get a variance, the property owner must prove that there is no other reasonable use for the property and the property owner will suffer a substantial hardship if the variance is not granted. The hardship also must not have been created by the property owner. EX: If an owner's lot is level next to a road but slopes steeply 30 feet away from the road, the zoning board may allow a variance so the owner can build closer to the road than the setback requirement allows. Otherwise, the lot could not be used.

plat map

detailed map illustrating the geographic boundaries of individual lots

protective covenant

enforceable conditions that restrict the manner in which an owner may use his/her property The term protective covenant is replacing restrictive covenant protective covenant is a more modern term and better implies the intended use, which is to protect owners from uses that may have an adverse effect on value or enjoyment.

government ownership of land

goverment owns certain amount of land for things like roads, highways, recreational use like parks, state legislative houses, schools, and military stations -about 1/3 of US land today, in the past it has been 80%

wastewater

includes grey water (i.e., water used for dishes, laundry and bathing) and black water which is sewage.

wetlands

land areas where groundwater is at or near the surface of the ground Wetlands are very susceptible to flooding and subject to many federal, state, and local controls.

Zoning ordinances

laws imposed by local government authorities (such as cities and counties) that regulate and control the use of land and structures within designated districts or zones.

laches

loss of a right through undue delay or failure to assert it.

restrictive covenant

provision in a deed limiting the use of property and prohibiting certain uses

historic preservation zoning

purpose is to preserve historic buildings and sites that are irreplaceable. An owner whose property falls within a historic preservation zone may have difficulty changing or upgrading the exterior of a structure on the property.

police power

state power to enact laws promoting health, safety, and morals

The NCBA/NCAR 2-T Offer to Purchase and Contract

suggests that the purchaser should review restrictive covenants, if any, plus any governing documents for the subdivision or any established owners' association, as part of the buyer's due diligence:

Straight-piping

where wastewater is discharged directly into the yard or into a nearby creek or stream, rather than into any approved treatment system. -Straight-piping is illegal because state law requires that any person owning or controlling a residence, place of business or place of public assembly must discharge all wastewater directly to an approved wastewater system for that specific use.