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Real Estate, Chapter 5, Lesson Cumulative Quiz
Terms in this set (30)
A large property is located in an area zoned for business. A developer builds a subdivision and includes a restrictive covenant prohibiting offices. If an individual owner wants to open a real estate office, which is correct?
A. The owner can open the office if he obtains a variance from the local planning agency
B. If the owner opens the office, ownership of the property will revert to the developer
C. The owner can't open the office because of the restrictive covenant
D. The owner should apply for a rezone
C. Explanation: The owner will not be able to open the office because the restrictive covenant prohibits it. If there is a conflict between a zoning ordinance and a covenant, whichever is more restrictive will prevail.
Before adding a room to a house, the homeowner is usually required to obtain a:
B. conditional use permit
C. building permit
D. certificate of occupancy
C. Explanation: A property owner must obtain a building permit before constructing a new building, or repairing or altering an existing building.
The owners of a nonconforming use are typically prohibited from:
A. continuing the nonconforming use when a new zoning ordinance is adopted
B. changing their property to a use that complies with the new zoning ordinance
C. petitioning for a rezone
D. enlarging the nonconforming use or rebuilding it if the property is destroyed
D. Explanation: There are certain restrictions placed on nonconforming uses, i.e., the owners cannot enlarge them, rebuild them after a fire, or resume their use after abandoning them. These restrictions are designed to gradually eliminate nonconforming uses in a way that is less harmful to the property owner.
As a rule, which of the following would NOT be exempt from ad valorem (general property) taxes?
A nonprofit school
D. Explanation: Vacant land would enjoy no exemption.
For zoning purposes, the distance from a lot boundary to the front wall of a building on the lot is called:
A. perimeter footage
B. the building variance
C. the lot to building ratio
D. the setback
D. Explanation: The minimum required distance between a building and the property line is the setback requirement.
Unlike general real estate taxes, special assessments are levied:
A. to pay for a specific improvement
B. every year
C. against all taxable real property within a taxing district
D. All of the above
A. Explanation: While general real estate taxes are levied every year against all taxable property, special assessments are levied against particular properties to pay for a specific improvement. A special assessment is a one-time tax.
The Washington Land Development Act applies when certain subdivision property is advertised for sale in this state:
A. even if the property is located in another state
B. only if the property is located in Washington State
C. only if the property is located in another state
D. only if the developer has not submitted a plat for approval in Washington
A. Explanation: The Washington Land Development Act applies to anyone selling 26 or more unimproved lots to the public. This is true even when the land is located in another state, as long as it is promoted in Washington.
The central task of a planning commission is to:
A. enact zoning laws
B. implement building codes
C. design a comprehensive plan for development
D. determine the highest and best use for each property
C. Explanation: The planning commission is responsible for designing and adopting a comprehensive, long-term plan for all development within the city or county.
The real estate excise tax is:
A. calculated as a percentage of the property's selling price
B. calculated as a percentage of the property's true and fair value
C. collected when the property is first listed for sale
D. collected only if the property is sold to an out-of-state buyer
A. Explanation: The real estate excise tax is based on the property's selling price.
The basis for zoning and other land use control laws is:
A. the government's police power
B. eminent domain
C. the Civil Rights Act of 1866
D. the government's power to tax property on the basis of value
A. Explanation: The police power is the basis for land use control laws, including zoning. Eminent domain is the government's power to condemn property.
Zoning, planning, building codes, fire ordinances, and environmental regulations are examples of the government's exercise of its inherent:
A. right of taxation
B. police power
C. power of eminent domain
D. condemnation power
B. Explanation: The examples in the question relate to the state's exercise of its police power.
If the county takes private property for a public use, it is exercising its:
A. power of eminent domain
B. police power
C. power of just compensation
D. power of public domain
A. Explanation: Under the power of eminent domain, government agencies can take private property for a public use, upon payment of fair market value to the owner.
As a general rule, a zoning law will only be considered constitutional if it:
A. does not reduce the value of the regulated property
B. is related to the protection of the public health, safety, morals, or general welfare
C. controls the ratio between floor area and lot size
D. All of the above
B. Explanation: Zoning laws, as well as other exercises of the police power, must be necessary for the protection of the public health, safety, morals, or general welfare in order to be constitutional.
Which of the following statements best describes the effect of the real estate excise tax?
A. The tax must be paid by the seller, so the buyer doesn't need to worry about it
B. The seller is required to pay the tax, but the tax will result in a lien against the buyer's property if the seller doesn't pay it
C. The buyer is required to pay the tax, and the seller is not involved in the process at all
D. The buyer and the seller are each responsible for paying one half of the tax
B. Explanation: By law, the seller is liable for the payment of the excise tax, but the unpaid tax creates a lien against the property, which is now owned by the buyer.
Which of the following would not be considered a valid exercise of the state's police power?
A. A building code regulation that requires minimum amounts of reinforcing steel in building foundations
B. A zoning law that limits the maximum height of structures
C. A law that requires all private property owners in a neighborhood to dedicate easements across their properties for a new public utility line
D. A law that limits the use of certain properties to residential use only
C. Explanation: Exercises of the police power must be related to the protection of the public health, safety, morals, or general welfare. Requiring property owners to dedicate an easement for a public utility line would be an example of condemnation
A religious congregation wishes to build a house of worship in an area that is zoned for residential use. The congregation should apply for a:
B. nonconforming use permit
C. conditional use permit
C. Explanation: Conditional use permits allow a limited number of special uses, such as hospitals, schools, and churches, in zones that would normally not allow these uses.
In Washington, a property owner is expected to pay at least the first half of the general real estate taxes by:
A. February 15
B. April 30
C. July 15
D. October 31
B. Explanation: The first half of the general property taxes are due on April 30; the second half is due on October 31.
The government is required to pay compensation to a property owner:
A. if the value of the property is reduced by an exercise of the police power
B. if the property is taken away by an exercise of the power of eminent domain
C. only if the property is condemned for a private purpose rather than a public purpose
D. only if the owner had a reasonable expectation of short-term profit from the property
B. Explanation: The power of eminent domain is the government's power to take private property for a public purpose upon payment of the property's fair market value. Note that property cannot be condemned for a private purpose.
A conditional use permit would be most likely to allow:
A. a hospital to be located in a residential neighborhood
B. a factory to emit limited quantities of air pollutants
C. a house to be built two feet closer to the property line than the setback rules allow
D. development of a subdivision with more than 25 lots
A. Explanation: Conditional use permits allow a limited number of special uses, such as hospitals, schools, and churches, in zones that would normally not allow these uses.
General real estate taxes are sometimes called ad valorem taxes because they are:
A. used only to pay for environmental cleanup
B. levied annually
C. based on the value of the property taxed
D. based on the benefit the taxpayer receives from government services
C. Explanation: Ad valorem taxes are taxes that are based on the value of the property being taxed
In Washington, general real estate taxes are levied against:
A. residential property only
B. residential and commercial property only
C. commercial and industrial property only
D. all real property, unless the property is specifically exempt
D. Explanation: All property in Washington is subject to general real estate taxes unless it is specifically exempt. For instance, property owned by the government is exempt from property taxes.
A zoning ordinance may:
A. regulate the height of buildings
B. have setback requirements
C. limit a property to certain uses
D. All of the above
D. Explanation: Zoning ordinances divide a community into areas that are set aside for certain uses, regulate the height and size of buildings, and determine setback requirements.
Which of the following is a federal law that requires an environmental impact statement to be prepared under certain circumstances?
A. Explanation: NEPA, the National Environmental Policy Act, requires an EIS for any government action that would have a significant impact on the environment.
A rezone is the same thing as a/an:
B. zoning amendment
C. nonconforming use
B. Explanation: A rezone is a zoning amendment.
Which of the following is the best description of a zoning variance?
A. A legal nonconforming use
B. Permission from zoning authorities to use or build on property in a way that is not authorized by current zoning laws
C. Permitted use of a property that was lawfully established but which no longer conforms to existing ordinances because of a change in zoning
D. An unauthorized use of the property
B. Explanation: A zoning variance is also called a zoning exception. A variance usually permits a minor departure from the existing ordinance
The Morrises want to build a garage on their property, but their plans don't meet the local zoning law's setback requirements. In order to build the garage, they must apply for a:
A. nonconforming use
B. conditional use
C. Explanation: A variance will enable the Morrises to make a minor deviation from zoning requirements. It will be allowed only if the Morrises face an undue hardship because of the zoning law and if the variance will not change the neighborhood's essential character.
A variance usually will not be granted unless the property owner:
A. faces severe practical difficulties or undue hardship as a result of the zoning
B. is prevented from making the most profitable use of the land because of the zoning
C. is eligible for a conditional use permit under the current ordinance
D. has applied for a rezone, and that request has been denied
A. Explanation: A variance is authorization to build or maintain a structure or use that is prohibited by the zoning ordinance. A variance will be granted only if the property owner faces severe practical difficulties or undue hardship as a result of the zoning.
After construction is complete, but before a tenant can move into a new facility:
A. the contractor must obtain title insurance
B. the escrow must close
C. the loan must be funded
D. a certificate of occupancy must be issued
D. Explanation: A certificate of occupancy is a statement issued by a local government agency verifying that a newly constructed building is in compliance with all codes and may be occupied.
Which of the following laws assigns responsibility for environmental cleanup costs?
A. Shoreline Management Act
D. Explanation: CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act) is a federal law regarding liability for environmental cleanup costs
Special assessments levied against a property for local improvements, such as streetlights and sidewalks, are computed on the basis of:
A. the market value of the property
B. the benefit the property receives from the improvements
C. a recent appraisal of the property
D. the square footage of the land
B. Explanation: As a rule, special assessments are allocated according to the benefits each property receives, instead of the market value of the property. Thus a special assessment is not an ad valorem tax. Sometimes the allocation is based on the front footage of the lot, if the assessment is levied to pay for storm drains, curbs, and gutters.
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