Deck 18: Real Property And Land Use

Question 1

A variance allows a landowner to construct something ordinarily not permitted under existing zoning regulations.

Answer 1

True

Question 2

Real estate law has its roots in both English common law and Spanish civil law.

Answer 2

True

Question 3

A borrower cannot effectively agree to waive the benefits of a usury law,because such an action is considered contrary to public policy.

Answer 3

True

Question 4

As a general rule,a real estate broker may act for more than one person in a real property transaction without the knowledge of all parties to the transaction.

Question 5

Inverse condemnation by the government constitutes a taking requiring just compensation.

Question 6

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

Question 7

As part of any legislative proposal or other major governmental action that will significantly affect the quality of the environment,the government must generally include an environmental impact statement.

Question 8

The term of a ground lease cannot be specified.

Question 9

The rate at which major financial institutions offer to lend to their most creditworthy customers is called the prime rate.

Question 10

An assignment of a lease is a temporary transfer of the lease to a third party,whereas a sublease is a permanent transfer of the lease to a third party.

Question 11

A trust is a form of co-ownership of property.

Question 12

English common law created a type of co-ownership of real property between husband and wife called joint tenancy.

Question 13

Although the appraisal of property is not an exact science,it is highly regulated by state governments.

Question 14

In the simplest type of ownership,property is owned by a partnership.

Question 15

Under a race recording statute,the first person to receive a valid deed will be deemed the owner of the property.

Question 16

All tenants in common have an equal right to possession of the property.

Question 17

The person who conveys real property by deed is called the grantee.

Question 18

Nonresidents who acquire U.S.agriculture land are required to file an informational report with the U.S.Secretary of Agriculture.

Question 19

The type of deed used by the seller determines the scope of the warranties the buyer is given.

Question 20

As opposed to a general partnership,property may not be held in a limited partnership.

Question 21

A title insurance policy does not insure against:

A) defects in title.
B) undisclosed liens.
C) defects in warranties.
D) errors in the abstraction of the title.

Question 22

A majority of states impose on commercial builders of houses a(n):

A) express warranty of quality.
B) implied warranty of merchantability.
C) warranty of deed.
D) implied warranty of habitability.

Question 23

Which of the following statements best describes rights of redemption?

A) A second lender lends the owner the additional funds and agrees to take over the servicing of the first loan.
B) Some states provide the mortgagor and certain other categories of interested persons the right to reacquire the property within a statutory limited period,ranging from two months to two years after the sale.
C) In this legal process,a mortgagee puts a piece of property up for sale to the public to raise cash to pay off a debt owed by the mortgagor to the mortgagee.
D) A lender advances the funds as the development-the acquisition and improvement of a commercial property-progresses.

Question 24

Title companies often hold purchase money in __________,meaning in a special account,until the conditions for the sale have all been met.

A) open account
B) dedication
C) escrow
D) closed account

Question 25

Which of the following is NOT a type of recording statute?

A) Race statute
B) Notary statute
C) Pure notice statute
D) Race-notice statute

Question 26

The interest of __________ is assignable and inheritable without the consent of any other co-tenant.

A) tenants in common
B) joint tenants
C) tenants by the entirety
D) community property tenants

Question 27

In a __________ financing transaction,the second lender lends the owner the additional funds and agrees to take over the servicing of the first loan.

A) permanent
B) wraparound
C) mortgage
D) deed of trust

Question 28

Which of the following are situations in which ownership rights are shared by two or more individuals?

A) Tenancy in common
B) Tenancy by the entirety
C) Both tenancy in common and tenancy by the entirety
D) Neither tenancy in common nor tenancy by the entirety

Question 29

In community property states,property acquired by inheritance during the marriage is:

A) community property.
B) separate property.
C) a tenancy by the entirety.
D) a tenancy in common.

Question 30

In a(n)__________ listing,the seller grants to a single broker the right to find a ready,willing,and able purchaser for the property for a specified period of time.

A) exclusive
B) open
C) net
D) broker

Question 31

In a(n)__________ listing,the broker will receive any sales proceeds in excess of the net listing amount specified by the seller.

A) exclusive
B) open
C) net listing
D) broker

Question 32

A one-point charge will generate a fee of _____ on a loan of $10,000.

A) $1,000
B) $100
C) $10
D) $1

Question 33

The Americans with Disabilities Act places requirements on employers regarding accommodating the disabled but does not address accessibility to commercial facilities.

Question 34

__________ sell beneficial shares that are traded in the stock markets and thereby permit small investors to invest in a diversified portfolio of real estate.

A) Real estate investment trusts
B) Real estate mutual funds
C) Land diversification trusts
D) Investment land diversifications

Question 35

Which of the following references the power of government to acquire private property needed for a public use?

A) Adverse possession
B) Area plan
C) Eminent domain
D) Call

Question 36

The legal basis for land-use planning and regulation is the __________-that is,the inherent authority of a city or county to protect the health,safety,and welfare of its residents.

A) environmental assessment
B) eminent domain
C) police power
D) control of rent

Question 37

A(n)__________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

A) substitution agreement
B) interim agreement
C) development commitment
D) take-out commitment

Question 38

A warranty of__________ is applied in a minority of jurisdictions and involves a warranty at the inception of a commercial lease that there are no latent defects in the premises that will prevent the premises from being used for its intended purpose and that the premises will remain in a suitable condition.

A) habitability
B) merchantability
C) suitability
D) fitness for a particular purpose

Question 39

Which of the following is true regarding the passing of community property upon the death of one of the owners?

A) The community-property interest of a spouse may be separately willed upon death; and in the absence of a will,community property passes to the other spouse.
B) The community-property interest of a spouse may be separately willed upon death; and in the absence of a will,passes to the surviving spouse and any surviving children in equal shares upon the death of one of the spouses.
C) The community-property interest of a spouse may not be separately willed upon death and passes to the other spouse automatically upon the death of one of the spouses.
D) The community-property interest of a spouse may not be separately willed upon death and passes to the surviving spouse and any surviving children in equal shares automatically upon the death of one of the spouses.

Question 40

In most commercial purchases of real estate,the deed conveys a(n):

A) fee absolute interest.
B) ownership unlimited.
C) joint tenancy.
D) fee simple interest.

Question 41

A __________ gives a person the right to negotiate the purchase of the property before the seller enters negotiations with another party.

A) letter of agreement
B) letter of intent
C) right of first refusal
D) right of first negotiation

Question 42

In relation to notice in connection with a property interest,courts may find __________ notice if a reasonable inquiry would have disclosed a prior interest.

A) actual
B) absolute
C) constructive
D) necessary

Question 43

What is the purpose of a conditional-use permit?

A) It promotes health and safety by separating residences from certain types of manufacturing and service industries.
B) It prevents apartments from being built near more desirable single-family dwellings in order to protect property values.
C) It imposes conditions to ensure that a nonconforming use will be appropriate for the particular situation.
D) It releases all covenants and restrictions and allows more creativity and shows greater sensitivity to environmental and aesthetic concerns.

Question 44

A __________ sets forth the general terms and conditions of a proposed purchase until a formal acquisition agreement can be signed.

A) letter of agreement
B) letter of intent
C) form of contract
D) formal delineation

Question 45

A right of first refusal is the right,conferred by a written contract,to:

A) purchase real property and lease it back to the selling company for its use.
B) abide by the general terms and conditions of a proposed purchase until a formal acquisition agreement can be signed.
C) purchase property on the same terms offered by or to a third party.
D) give the holder only the right to negotiate the purchase of the property before the seller enters negotiations with another party.

Question 46

Shea has a great farm bordering on a river and plans to build a house on a cliff overlooking the water.Shea was also considering building a couple of guest cottages to rent to vacationers.One day a land conservatory came to Shea and asked to have the land designated as a pristine area whereby no development or building could take place.Shea told them to get lost.Subsequently,the jurisdiction in which Shea lived had passed a regulation permanently prohibiting riverfront owners in the area from building any structures within one half mile of the river.There had been no such restriction in the state or county previously,and Shea suspects that the regulation is part of a plot to force landowners to agree to the request of the land conservatory.Shea tells the builder to go ahead with plans to construct the home because the government cannot take land through excessive regulation.Is Shea correct that the government cannot take land through excessive regulation?

A) Shea is incorrect,although if the government action constitutes a taking,compensation to the landowner must be provided.
B) Shea is incorrect,and no compensation to the landowner is required.
C) Shea is incorrect,although she would only be entitled to compensation for any lost profits that can be established.
D) Shea is correct,and the regulation would be overturned by a federal court.

Question 47

A change in the land-use regulations prior to vesting:

A) may preclude a development that would have been permissible under the regulations in force at the time the property was acquired.
B) does not change a developer's right to develop the property.
C) makes the project immune from any subsequent changes in the regulations.
D) is unrelated to the "last discretionary approval" required for development.

Question 48

A city can require that __________ uses be eliminated within a reasonable time or when an application for a building permit to modify the premises is submitted.

A) conditional-use
B) limited-access
C) nonconforming
D) division

Question 49

In a(n)__________,the potential buyer pays the seller for the right,but not the obligation,to purchase the property during a given time period.

A) right of first refusal
B) real estate investment trust
C) option contract
D) preliminary agreement

Question 50

Describe in detail the three basic types of deeds including any warranties or guarantees the deeds provide.

Question 51

Compare and contrast joint tenancy and tenancy by the entirety.

Question 52

Which of the following is NOT true regarding the legal requirements of a deed?

A) It must specifically describe the interest that is conveyed.
B) It must be signed by the named grantee.
C) It must be delivered to the named grantee.
D) It must be accepted by the named grantee.

Question 53

An alternative to acquiring real property for cash is a(n)__________,whereby the seller exchanges its property for another piece of property.

A) tax-deferred exchange
B) sale and leaseback
C) option contract
D) wraparound financing

Question 54

Which of the following is NOT one of the three basic types of deeds?

A) A grant deed
B) A specific deed
C) A quitclaim deed
D) A warranty deed

Question 55

__________ is the division of a city into districts and the application of specific land-use regulations in each district.

A) Zoning
B) Nonconforming use
C) Subdivision process
D) Constitutional taking

Question 56

What is generally meant by a reference to a triple net industrial lease?

A) The tenant pays all taxes,insurance,and operating maintenance expenses.
B) The lessor pays all taxes,insurance,and operating maintenance expenses.
C) The tenant pays insurance and operating maintenance expenses,but the lessor pays taxes.
D) The lessor pays insurance and operating maintenance expenses,but the tenant pays taxes.

Question 57

In CASE 18.2 Koontz v.St.Johns River Water Management District (2013),plaintiff Koontz purchased 14.9 acres of undeveloped land classified as "wetlands." The State of Florida found Koontz's land-use permit proposal (which included land and cash)to develop the land inadequate and imposed more "conditions" to the permit.Koontz found these conditions were excessive under the Nollan and Dolan cases,and filed suit.The U.S.Supreme Court __________ the Florida Supreme Court,holding that the government's demand for property (and cash)for land under the __________ requirements amounted to a(n)__________ of Koontz's land.

A) affirmed; Kelo; unconstitutional taking
B) reversed; Nollan and Dolan; unconstitutional taking
C) reversed; Kelo; nonconforming use
D) affirmed; Nollan and Dolan; unconstitutional taking

Question 58

CASE 18.1 Kelo v.City of New London (2005)dealt with whether a redevelopment plan designed to spur economic growth by transferring nonblighted private residential property to a private developer constitutes a public use.How did the court rule?

A) The court adopted a rule requiring that the city establish to a "reasonable certainty" that the expected public benefits would actually accrue from the development plan.
B) The court preempted multiple state laws prohibiting the taking of private property for purposes of private redevelopment.
C) The city cannot use its power of eminent domain because the taking does not advance a public purpose.
D) The city could use its power of eminent domain when the taking advances a public purpose.

Question 59

In Stevens v.Premier Cruises,Inc.(2000),the plaintiff-who was confined to a wheelchair-sued Premier Cruises under the __________ Act,claiming that the portions of the ship that were considered "__________" were not in-fact wheelchair accessible.

A) Title III of the Civil Rights; public accommodations
B) Americans With Disability; public accommodations
C) Department of Justice Disability; public accommodations
D) Americans With Disability; private accommodations

Question 60

Blair and Jimmy have been married for many years and own a home through tenancy by the entirety.Blair has grown children from a previous marriage,Andy and Casey; and Blair's will provides that Blair's interest in the home should go to them upon Blair's death.Blair dies at age 90,and a few weeks later Jimmy finds a new friend and moves that friend into the home.Andy and Casey object and tell Jimmy to get out because they have an ownership interest in the home,and they believe that Jimmy is being disrespectful to Blair's memory and wishes.Which of the following is true regarding the ownership claim of Andy and Casey?

A) Blair's children are correct; and each of them,along with Jimmy,have a 1/3 ownership interest in the home.
B) Blair's children are correct,and they each have a 25% interest in the home with Jimmy owning the other 50% interest.
C) Blair's children are correct,and they each have a 10% interest in the home with Jimmy owning the other 80%.
D) Blair's children are incorrect,and Jimmy solely owns the home.

Question 61

Vega is selling the family home.During the inspection with a broker,Vega discovered that some of the pipes in the walls had developed tiny leaks.The cost of fully repairing this condition would cost thousands of dollars and take approximately three months.Instead,Vega verbally represented to each and every buyer that the house was "in great shape" and "had no problems." Chan bought Vega's house; and six months after the deal closed,a pipe broke,causing $10,000 in damages.What remedies does Chan have against Vega regarding the sale of the house? Discuss fully.

Question 62

Explain the difference between an environmental assessment and an environmental impact statement.When is each used?

Question 63

J.C.owns a 20-acre parcel of land in Smallville.Brady is a developer who wants to build a subdivision in Smallville and offers J.C.$1,000 for a 30-day option to purchase the land for $1 million.J.C.agrees.Clara is J.C.'s sister and has a valid right of first refusal on the same land.Brady has been told by the bank that it will provide a construction loan for the development.What rights did Brady legally obtain when purchasing the option? What effect will Clara's rights have on Brady's option? Explain the three types of loans-construction,gap,and take-financing-that could be involved to complete the development.Discuss fully.

Question 64

What must a person do to acquire a parcel of land by adverse possession?