Deck 19: Constitutional Issues in Real Estate

Question 1

Eminent domain rights are found in the Fifth and Fourteenth Amendments.

Answer 1

True

Question 2

Whether a public purpose is involved is a narrow issue in eminent domain.

Answer 2

False

Question 3

For a taking to occur under eminent domain, there must be physical occupation of the property.

Answer 3

False

Question 4

A taking can occur through government-imposed use restrictions.

Question 5

Regulation of property can never constitute a taking.

Question 6

Just compensation is determined by the value of the property after the announced government project.

Question 7

Just compensation is compensation for the government's gain.

Question 8

Zoning regulations cannot control First Amendment rights.

Question 9

Racially discriminatory covenants are still enforceable as private land rights.

Question 10

All-adult covenants in residential housing are constitutional.

Question 11

Blockbusting is generally an activity of real estate agents and brokers.

Question 12

Temporarily withdrawing a home from the market to prevent its purchase is a method of steering.

Question 13

Appraisers can cause redlining through their appraisal methods.

Question 14

The Home Mortgage Disclosure Act applies to all financial institutions.

Question 15

The Community Reinvestment Act is the Fair Housing Act.

Question 16

The Fair Housing Act applies to appraisers.

Question 17

Certain zoning restrictions can constitute a taking.

Question 18

Age restrictions are valid when alternative housing is available.

Question 19

Redlining occurs when a lender considers the area of the property to be purchased as a factor in qualifying the buyer for the loan.

Question 20

Lending at less favorable terms in certain pre-designated geographic areas is a form of redlining.

Question 21

Steering is the same as blockbusting.

Question 22

The Fair Housing Act does not apply to landlords.

Question 23

Prohibiting construction in wetlands is constitutionally exempt.

Question 24

Regulation of land use is never a taking.

Question 25

The Fair Housing Act applies to insurers.

Question 26

There can be vicarious liability for brokers under the Fair Housing Act.

Question 27

The Kelo case limited local development through condemnation of private property.

Question 28

The size of the taking controls whether there has been eminent domain.

Question 29

All-adult covenants are a violation of the Fair Housing Act.

Question 30

The Fair Housing Act applies to ads for the sale or lease of property.

Question 31

Economic development is a recognized public purpose for purposes of a taking of private property.

Question 32

All-adult covenants in residential developments have been determined to meet constitutional standards regardless of community housing issues.

Question 33

Requiring a landowner to place a small cable box on his or her property is a taking.

Question 34

Fair market value is the measure of adequate compensation in eminent domain.

Question 35

Fair market value is defined as what a willing buyer would pay a willing seller.

Question 36

Group homes can be prohibited by a local zoning plan.

Question 37

"Christians only" in an ad for an apartment would violate the Fair Housing Act.

Question 38

Landlords can refuse to accept Section 8 tenants.

Question 39

Only individuals can file suit to enforce the Fair Housing Act.

Question 40

States cannot pass laws that supersede the Kelo case.

Question 41

The Fair Housing Act requires proof of intentional discrimination or disparate treatment for a violation to be found.

Question 42

In the Kelo case, Pfizer built its facility and the area became well developed and economically renewed.

Question 43

Economic revitalization is considered a public purpose for eminent domain cases.

Question 44

Low-income housing tax credits are given to developers who construct Section 8 housing.

Question 45

The Affirmatively Furthering Fair Housing Rule has been promulgated by HUD and is in effect.

Question 46

The U.S. Treasury Department is required to oversee how low-income housing credits are awarded.

Question 47

Which of the following is not an element for the exercise of eminent domain?

A) Public purpose
B) Judicial review
C) Just compensation
D) Landowner approval

Question 48

Which of the following is true regarding the establishment of a public purpose?

A) A narrow interpretation is given to the term
B) There must be a public road, park, school or other facility involved
C) Private property cannot be affected
D) State legislatures have limited the definition of public purpose

Question 49

A government regulation that deprives a landowner of use of her property:

A) Is a taking that requires compensation.
B) Is not a taking since the landowner still has title.
C) Is a taking but no compensation is required.
D) Cannot be done under the constitution.

Question 50

A definition of just compensation would be:

A) Value of the government's gain.
B) Fair market value.
C) Auction price.
D) Enough money to move elsewhere.

Question 51

A zoning regulation that prohibits "annoying" businesses in a business district:

A) Is void for vagueness.
B) Is valid so long as all businesses are subject to regulation.
C) Is an infringement of First Amendment rights.
D) Is an example of density zoning.

Question 52

Racially restrictive fee simple defeasibles:

A) Are enforceable private property rights.
B) Are violative of the Fourteenth Amendment.
C) Are violative of the Fourteenth Amendment but holders are entitled to compensation for their non-enforcement.
D) No longer exist.

Question 53

All-adult covenants are:

A) Unenforceable.
B) Violative of the Fourteenth Amendment.
C) Invalid in apartment complexes.
D) Valid when the age restrictions are enforced.

Question 54

The Fair Housing Act:

A) Is part of the Civil Rights Act.
B) Applies only to lenders.
C) Does not apply to insurers.
D) Applies only to sales of real property.

Question 55

The Home Mortgage Disclosure Act and the Community Reinvestment Act:

A) Are anti-redlining statutes.
B) Apply only to single-family dwelling loans.
C) Are the Fair Housing Act.
D) Have been declared unconstitutional.

Question 56

Which of the following involves designation of certain geographic areas as high risk?

A) Blockbusting
B) Steering
C) Redlining
D) Section 8 housing areas

Question 57

The Fair Housing Act:

A) Does not regulate redlining.
B) Is inapplicable to loan qualifications.
C) Is inapplicable to appraisers.
D) Applies to residential sellers, buyers, and brokers.

Question 58

A zoning restriction:

A) Can constitute a taking.
B) Is never a taking if there is a legitimate public purpose.
C) Cannot be an age restriction.
D) Cannot be a use restriction.

Question 59

The city of Reston has two annexation applications before it. One application would result in the annexation of a community of Asian-Americans. The other annexation would result in the addition of a retirement community consisting of all-white adults over the age of 55. Reston has denied one application- that of the Asian-Americans and approved the other citing economic reasons. The number of individuals in each annexation is about the same. The city's decision:

A) Is probably valid.
B) Probably violates the Voting Rights Act.
C) Is not subject to any restrictions other than following proper procedures for annexation hearings.
D) Is a form of redlining.

Question 60

The following language in a deed: "To my daughter so long as she does not permit non-Caucasian tenants to reside therein."

A) Is legal so long as it is a private property
B) Is legal so long as there are other properties available for non-Caucasians
C) Violates the Rule Against Perpetuities
D) Is a void fee simple defeasible

Question 61

Jane and Greg Portabello own property along the coast. They want to build a larger home. They have been denied a permit unless they create a path through their property to the beach.

A) The county has the authority to demand the path
B) Just compensation does not apply to easements
C) The path is simply a fee for the permit
D) There is a compensable taking here.

Question 62

Which of the following is not a violation of the Fair Housing Act?

A) A real estate agent telling a buyer he will not answer questions about the neighborhood
B)A real estate agent telling a buyer property is not available in a particular area when it is
C)A real estate agent refusing to show property to a customer
D)A real estate agent lying about property to halt a buyer's interest

Question 63

A city ordinance prohibits same-gender couples from residing in designated neighborhoods.

A) The ordinance is unconstitutional
B) The ordinance is unconstitutional if there are no housing alternatives for same-gender couples
C) The ordinance is valid if passed pursuant to a master plan
D) The ordinance is a form of blockbusting

Question 64

Which of the sections of the U.S. Constitution apply in real property issues?

A) Fifth Amendment
B) Fourteenth Amendment
C) Both the Fifth and Fourteenth Amendments
D) Neither, state constitutions are applicable to real estate takings issues

Question 65

Racial covenants:

A) Are unconstitutional.
B) Are still valid in some states.
C) Are invalid unless they existed before 1964.
D) Are easily discovered.

Question 66

Which of the following does not require due process to be valid?

A) Tax sales
B) Foreclosure
C) Eminent domain
D) Restrictions on language used in ads

Question 67

If a deed restriction violates the equal protection clause:

A) It will still be honored until the restriction expires.
B) The deed is valid, but the restriction does not apply.
C) The property is taken by eminent domain.
D) It can be taken out of the original deed.

Question 68

In the Kelo case, the tension in the facts involved:

A)The right of local government to take private property used for one purpose and give it to another private party for a different use as part of an economic development plant.
B)The right of local government to clean up blighted areas through the use of eminent domain.
C)Whether eminent domain can be used for economic development.
D)Whether private landowners can use the Civil Rights Act for protection of their land.

Question 69

Which of the following ads would be a violation of the Fair Housing Act?

A)Non-smoking tenant required
B)Master bedroom
C)Christian tenant
D)Merry Christmas

Question 70

Jane Fromm is a real estate broker who has three listings in a neighborhood. When an Asian couple asks to see one of the homes, Jane explains to the couple that there is another area in which they would be happier. When a couple from Mexico asks to see one of the homes in the neighborhood, Jane explains to them that the home is already under an offer. When a white couple asks to see one of the homes, Jane shows the couple all three homes. Jane:

A) Is permitted to use her knowledge and discretion in guiding buyers to suitable homes.
B) Is engaged in steering, a violation of the Fair Housing Act.
C) Is not a Fair Housing Act violation if Jane does not refuse to sell to any of the couples.
D) Is just a suggestion, not a violation of the Fair Housing Act.

Question 71

Meridian Insurance Company does not write insurance policies in the Bedford borough area. "There have been too many claims from that area and we just cannot afford to write policies there." Meridian:

A)Is entitled to determine where it will and will not do business.
B)Is engaged in redlining.
C)Is engaged in steering.
D)Is engaged in blockbusting.

Question 72

What are the requirements for just compensation?

A)Fair market value
B)The amount the government entity gains through taking the property
C)A reasonable value
D)What a seller would pay when a buyer has no choice

Question 73

The city of Providence has begun eminent domain proceedings to allow a pipeline to be constructed across several property owners' lands. Which of the following is correct?

A)An easement for a pipeline is a taking that is proper and can be done with compensation.
B)Eminent domain is for taking title to land, not for easements.
C)Governments can take property for use, but cannot require landowners to have their property used for a pipeline.
D)An easement is not a taking and does not require eminent domain proceedings.

Question 74

The following language is part of a deed, "To A so long as no Germans are permitted to live on the property." Such a restriction:

A)Is valid because Germans are not a protected class.
B)Is valid because it is a private restriction.
C)Is valid because it is not a deed restriction but part of a grant of land.
D)Is unconstitutional.

Question 75

The Woodlands Condominium Development has the following restriction in its CCRs:"No one under the age of 55 shall be permitted to reside in any condominium unit."Chad and Jill Summerlin live in one of the Woodlands Units. Their daughter, Sarah, 29, has just been through a divorce and she and her son, Adam, age 7, need a place to live. The Summerlins purchase a condo unit for them in the Woodlands so that they can be nearby to help as Sarah needs it. The condo association has brought suit to have Sarah and her son removed from the unit. Which is correct?

A)They cannot be removed because they are owners
B)They can be removed if there is just compensation
C)They can be required to leave the unit
D)They can be required to leave the unit only if the Summerlins agree

Question 76

An apartment complex has placed an ad in the newspaper that includes the following, "No families with more than 3 children under the age of 10." Which of the following is correct with regard to the ad?

A)Since it is private property, the age restriction is fine
B)The age restriction is fine as long as there is housing in the area for families with children
C)The age restriction is a violation of the Fair Housing Act
D)The age restriction is reasonable and valid

Question 77

Bob Taft applied for a loan for the purchase of a home. The loan officer denied the loan and explained, "Look, you come from a rough area. I can't loan money for buying homes in that area." Which of the following is the correct term for what the loan officers is doing?

A)Steering
B)Blockbusting
C)Redlining
D)Not a violation of the Fair Housing Act

Question 78

Al Freeman relied on Section 8 housing vouchers for his rent. He submitted an application to rent an apartment at the Woodstream Apartments. When he submitted his application, the manager said, "Sorry, we no longer take Section 8 tenants." Which of the following is an accurate description about the manager's conduct?

A)The manager has violated the Fair Housing Act
B)The manager is permitted to deny housing to Section 8 tenants
C)The manager has violated Al's constitutional rights
D)The manager has no authority to act on behalf of the landlord

Question 79

Which of the following theories cannot be used as a basis for a discrimination suit under the Fair Housing Act?

A) Disparate treatment
B) Disparate impact
C) Refusal to sell
D) Credit checks

Question 80

Which of the following would NOT be a public purpose?

A)Taking property for construction of a freeway
B)Taking property for construction of a baseball stadium that is a private/public joint venture
C)Taking property for expansion of an existing highway
D)All of the above are considered public purposes under the case law