Unit 6 Test
Which of the following BEST describes the purpose of a building permit? A)To provide evidence of compliance with municipal regulations B)To serve as a means of regulating the area and size of buildings C)To control the volume of construction D)To override or substantiate deed restrictions
A 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.
Which of the following statements is/are TRUE about subdivision regulations? A subdivision consists of at least five parcels of land for the purpose of sale or development now or in the future. A broker can negotiate a sales contract on lots in a new subdivision only after the final subdivision plat has been recorded. A)Neither I nor II B)Both I and II C)II only D)I only
A In North Carolina, state law defines the term subdivision as "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." Real estate brokers should be well aware of the needed verification of approved subdivisions, especially in regards to selling recently subdivided lots. Before selling or listing lots in newly subdivided land, a broker should check with the register of deeds office in the county where the lot is located to ensure that the plat has been properly recorded. Approval must be granted.
Straight-piping A)refers to wastewater discharged directly into the yard or into a nearby creek or stream rather than into any approved treatment system. B)does not have to be disclosed to consumers. C)refers to the process of getting a soil suitability test quickly. D)refers to a legal alternative to an underground onsite septic sewage system.
A Rather than incurring the expense of property sewage disposal, individuals might attempt to use illegal straight-piping. Straight-piping is where wastewater is discharged directly into the yard or into a nearby creek or stream, rather than into any approved treatment system.
There are no nationwide or statewide zoning ordinances because zoning is viewed as __________in nature. A)local B)rural C)toxic D)urban
A State and federal governments may regulate land use through special legislation, such as scenic easement or coastal management laws. Overall, there is no conformity of zoning codes or definitions, and it is critical for brokers to check with local municipalities before answering any questions about zoning.
Deed restrictions may be enforced by A)court injunction. B)city building commission. C)state legislature. D)zoning board of adjustment.
A 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 any restrictive covenant or condition is considered ineffective by a court, the property is freed from the invalid covenant or condition.
Which of the following is NOT a governmental right in real property? A)To determine how land is used and developed B)To take abandoned land or any land deemed to be need for the public good C)To create deed restrictions D)To assess taxes
A The governmental rights are PETE—police power, eminent domain, taxation, and escheat. Deed restrictions are private controls on land.
A list of deed restrictions probably would NOT include A)allowable ethnic origins of purchasers. B)minimum size of buildings to be constructed. C)types of buildings that may be constructed. D)activities that are not to be conducted at the site.
A Use restrictions usually are considered valid if they are reasonable and are for the benefit of all property owners in the subdivision. However, if such restrictions are so broad in their terms that they prevent the free transfer of property, they may not be enforceable.
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)is usually supported by all the residents of a given area so that the majority rules. C)is generally supported by special interest groups whose power might be greater than that of the courts. D)has been determined by the courts to be an excessive use of police power and was therefore ruled as unconstitutional.
A When downzoning occurs in an area—for instance, when land zoned for residential construction is rezoned for conservation or recreational purposes only—the state is ordinarily not responsible for compensating property owners for any resulting loss of value. However, if the courts find that a taking has occurred, the downzoning will be held to be an unconstitutional attempt to use the power of eminent domain without providing fair compensation to the property owner.
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)an attorney. B)a surveyor. C)a council member. D)a current resident.
A 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.
Any developer who fails to comply with the requirements of the Interstate Land Sales Full Disclosure Act may be A)ordered to cease work on the project. B)sanctioned by leaders in the area. C)required to obtain a variance from the local zoning board. D)subject to criminal penalties of fines and imprisonment.
D This federal law enacted in 1968 requires disclosure of full and accurate information on property to prospective buyers before they decide to buy. Violations of the Act may result in criminal fines and imprisonment for a developer who fails to comply with the provisions of the Act.
If a property being shown is near a creek or a river, a broker is expected to recognize patterns of A)erosion. B)mold. C)flooding. D)water fowl migration.
C A broker should assist the parties with locating and reviewing the FEMA maps or checking with the local planning office to determine if there is any potential flooding problem.
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 building code. B)a certificate of occupancy. C)a building permit. D)a certificate of zoning.
B A certificate of occupancy is the final step in showing that a new building meets minimum building standards.
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 Although a prudent broker should always volunteer general knowledge of the possible existence of land-use restrictions, there are some situations that would require a broker to actively disclose and notify the buyer of possible problems.
An oral contract to convey title to real property is A)valid. B)unenforceable. C)void. D)voidable.
B An oral contract for real property is unenforceable because of the language in the statute of frauds.
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 variable use. B)a variance. C)a best use permit. D)a waiver of real property.
B Generally, owners can appeal for either a conditional-use permit or a variance to allow a use that does not meet current zoning requirements.
Private land-use controls include which of the following? A)Environmental restrictions B)Restrictive covenants C)Zoning ordinances D)Building codes
B Private use restrictions are used primarily to protect property values and need not pass the test of promoting the public welfare, the test that public use restrictions must pass.
Restrictive covenants A)are no longer effective when the title is transferred. B)apply to and bind all successive owners of the property. C)are often removed by a court of competent jurisdiction. D)apply only until the developer has conveyed the title.
B Restrictive covenants attach to the property itself and "run with the land," binding all subsequent purchasers, heirs, and assigns.
If a property is subject to regulation by an owners association, it is recommended that the buyer review this completed disclosure provided by the seller before signing the offer. What is the name of this disclosure? A)Residential Owners' Association Disclosure Statement B)Residential Property and Owners' Association Disclosure Statement C)North Carolina Association Disclosure Statement D)Residential Disclosure Statement
B The North Carolina 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.
A proposed area rezoning amendment will change land use from residential to manufacturing. Several homes are already located within the area proposed for rezoning. If the current zoning is amended, the residences will probably A)be required to be torn down. B)become a preexisting nonconforming use. C)be required to be physically moved to a residential use area. D)be required to convert to commercial use.
B The change in zoning after the homes are already located within the area will result in the homes becoming a nonconforming use of property.
Which of the following is generally NOT a use classification established by municipal zoning? A)Mixed B)Architectural C)Residential D)Commercial
B The most common zoning classifications are residential, commercial, industrial/manufacturing, agricultural, and mixed use.
The use of privately owned real property may be regulated and restricted by A)local government. B)all of these. C)individuals. D)state and federal government.
B 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.
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)first father. B)early opportunity. C)nonconforming. D)nullified.
C A good example is when a small factory building is the last one left in a neighborhood that was once industrial but has since been zoned for residential use. The factory owner has a matter of right to continue this nonconforming, pre-existing use.
Which statement is FALSE regarding onsite septic system permits? A)The permit may limit the location of the system and/or uses that might overload the system. B)The permit will describe maximum occupancy as three persons per permitted bedroom. C)The permit is valid for a specified period and is available through county health departments. 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 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 statements is FALSE about a broker's responsibility regarding land use? A broker: A)is expected to be able to recognize "red flag" situations regarding land use issues and to advise the parties involved of the potential problem. B)must know all of the protective covenants affecting a community. C)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. D)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.
B 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.
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)Imposition restrictions B)Declaration of restrictive covenants C)Developer protections D)Protected classes
B When a lot in that subdivision is conveyed by an owner's deed, the deed refers to the plat and declaration of restrictions and incorporates these restrictions as limitations on the title conveyed by the deed. In this manner, the restrictive covenants are included in the deed by reference and become binding on all grantees.
A tire company has a manufacturing plant located in an area that has just been rezoned for residential use. The company is allowed to continue operating the plant under the new zoning classification. If the plant is destroyed by fire or other hazard, the tire company A)may rebuild the plant if it obtains the consent of the residents then living in the neighborhood. B)may not be allowed to rebuild the plant in the neighborhood, absent obtaining a zoning variance. C)may rebuild the plant if the homeowners association approves it. D)may not be allowed to rebuild the plant in the neighborhood unless provided for by building codes.
B Zoning ordinances will usually not permit a nonconforming use to continue when a property is destroyed. The tire company may be required to receive a variance from zoning ordinances before rebuilding the plant.
Zoning allows regulation of all of the following EXCEPT A)number of buildings. B)building ownership. C)size of buildings. D)building occupancy.
B 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.
A homeowner wishes to install a hot tub in her backyard. It will be used to treat a medical condition. In order to prevent neighborhood children from accidentally falling into the hot tub, the owner wishes to build a six-foot fence, but city regulations limit fences to four feet. To have a six-foot fence, the owner must obtain a A)nonconforming-use permit. B)license. C)variance. D)permit issued by the state.
C Each time a zoning ordinance is enacted, some owners are inconvenienced and want to change the use of their property. Petitions may be presented to the board for variances or exceptions to the zoning law. A variance may be sought to allow a deviation from an ordinance due to unique circumstances.
Public land-use controls include all of the following EXCEPT A)subdivision regulations. B)environmental protection laws. C)restrictive covenants. D)master plan specifications.
C Public land-use controls include planning, zoning, subdivision regulations, building codes, and environmental protection legislation.
The owner of an unimproved lot wants to build a home. The owner's first step would be to A)have the contractor dig the foundation. B)obtain and record a plat map. C)apply for a building permit. D)apply for a certificate of occupancy.
C 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.
The distance that a zoning ordinance requires between a property's boundaries and its improvements is A)a frontage. B)a range. C)a setback. D)a buffer zone.
C The setback establishes the minimum distance between the boundaries and the improvements located on the property.
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/white situations. B)red light situations. C)red flag situations. D)red alert situations.
C 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.
When zoning and covenants are in conflict, which takes precedence? A)Zoning always takes precedence B)Covenants always take precedence C)The more restrictive of the two D)The less restrictive of the two
C Use restrictions through covenants usually are considered valid if they are reasonable and are for the benefit of all property owners in the subdivision. However, if such restrictions are so broad in their terms that they prevent the free transfer of property, they may not be enforceable.
A municipality establishes development goals through its A)restrictive covenants. B)environmental regulations. C)subdivision regulations. D)comprehensive master plan.
D A comprehensive master plan expresses and regulates public policies on land use, transportation, recreation, and housing. The plan establishes the community's development goals.
The grantor of a deed may place effective restrictions on the right to sell the land. use of the land. A)Both I and II B)I only C)Neither I nor II D)II only
D 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 styles, fence heights, setbacks, or outbuildings that can be built on the land.
The grantor of a deed may place effective restrictions on the right to sell the land. use of the land. A)I only B)Neither I nor II C)II only D)Both I and II
D 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 styles, fence heights, setbacks, or outbuildings that can be built on the land.
Which of the following statements is TRUE regarding the Interstate Land Sales Full Disclosure Act? A)The Act has no exemptions. B)The details of the land for sale must be registered with the secretary of state where the property is located. C)The Act regulates all unimproved land sales that will be marketed across state lines. D)Buyers of property subject to the Act must receive a property report prior to creation of a sales contract.
D Developers must register a subdivision with HUD and deliver a property report to a purchaser before the creation of a sales contract.
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 Mortgage Agency B)Federal Emergency Mission Agency C)Federal Elections Management Agency D)Federal Emergency Management Agency
D FEMA produces maps that designate these flood hazard areas, and 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.
When other property owners in an established subdivision wish to remedy a violation of a restrictive covenant by a neighbor, they should A)appeal to the zoning commission. B)complain to the developer. C)write the city council. D)hire an attorney and sue the offender.
D 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.
Before making material changes to a property located within a ____________________, the owner must obtain a certificate of appropriateness from the appropriate regulatory entity. A)super zone B)protective zoning district C)aesthetic zoning area D)historic preservation zone
D The certificate confirms that the local historic preservation commission, or other appropriate entity, has approved of the changes to be made to the property.
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)Ask the listing broker if a septic permit was issued for up to four occupants. B)Assume the proper permits were issued for the renovations. C)Recommend that her buyer clients request that the sellers have the septic tank serviced before closing if they want to make an offer. D)Contact the county health department for a record of the property's septic permit.
D The county health department maintains septic permits. Under these circumstances, it is likely this is a three-bedroom house.
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)20-year plans. B)decade plans. C)holistic plans. D)master plans.
D The master plan is both a statement of policies and a presentation of how those policies can be realized. As created by the city, county, or regional planning commission, a typical master plan provides for land use, public facilities, circulation, conservation of energy and natural resources, and noise abatement.
The right of the government to establish zoning and land use laws is an exercise of which of the following? A)Eminent domain B)Escheat C)Taxation D)Police power
D The police power is the government's right to enact and enforce laws to protect the public health, safety, morals, and general welfare (including land use laws).
Last week, the city council passed a zoning ordinance that prohibits packaged food sales in the area where a family-run grocery store has operated for the last 30 years. The store is now an example of A)a violation of the zoning laws. B)an illegal enterprise. C)a variance of the zoning laws. D)a nonconforming use.
D This situation illustrates a nonconforming use, a permitted use of real property that was established and maintained at the time of its original construction, but which no longer conforms to zoning laws passed after that use was established. Nonconforming use is different from a variance of zoning laws, which is permission from governmental zoning authorities to build a new structure or conduct a use prohibited by the zoning laws.
