Real Estate Pt 2

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Hbabitt91
H
Hbabitt91
Community Contributor
Quizzes Created: 3 | Total Attempts: 471
| Attempts: 109
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/90 Questions

    The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract's provisions do what

    • Act within a statutory period
    • Select a specific, limited course of action for recouping their losses
    • Arbitrate prior to taking court action
    • Wait a statutory period before they take legal action
Please wait...
About This Quiz

Explore key aspects of real estate contracts in 'Real Estate Pt 2'. This quiz covers topics such as the Statute of Limitations, contract termination, and the legal requirements of contracts, enhancing your understanding of real estate transactions and law.

Real Estate Pt 2 - Quiz

Quiz Preview

  • 2. 

    A buyer submits an offer to a seller.  Two hours later, the buyer finds a better house, calls the first seller, and withdraws the offer.  Which of the following is true?

    • The buyer may not revoke the offer in such a short period of time

    • The first seller may sue the buyer for specific performance

    • If the seller accepted the offer, the buyer must perform

    • The original offer is legally terminated

    Correct Answer
    A. The original offer is legally terminated
    Explanation
    When the buyer withdraws the offer, it means that they are no longer interested in purchasing the property. This action legally terminates the original offer, as the buyer has effectively revoked their intention to enter into a contract with the seller. Therefore, the original offer is legally terminated.

    Rate this question:

  • 3. 

    What is an important legal feature of a contract

    • Represents a "meeting of the minds"

    • It uses precise wording in a doc

    • It is not voidable

    • It can be created only by an attorney

    Correct Answer
    A. Represents a "meeting of the minds"
    Explanation
    An important legal feature of a contract is that it represents a "meeting of the minds". This means that both parties involved in the contract have a clear understanding and agreement on the terms and conditions stated in the contract. This ensures that there is mutual consent and understanding between the parties, which is essential for the contract to be legally binding and enforceable.

    Rate this question:

  • 4. 

    What is the purpose of the Statute of Frauds?

    • Invalidates certain oral contracts

    • Requires certain conveyance-related contracts to be in writing

    • Nullifies oral leases and listing agreements

    • Eliminates fraud in real estate contracts

    Correct Answer
    A. Requires certain conveyance-related contracts to be in writing
    Explanation
    The purpose of the Statute of Frauds is to require certain conveyance-related contracts to be in writing. This means that certain contracts, such as those involving the sale of land or a mortgage, must be in written form in order to be enforceable. This requirement helps to prevent fraud and ensure that parties are held accountable for their agreements in real estate transactions.

    Rate this question:

  • 5. 

    Which of the following contracts must be in writing

    • A parol contract

    • A 6 month lease

    • A 2 year lease

    • An executory contract

    Correct Answer
    A. A 2 year lease
    Explanation
    A 2 year lease must be in writing because it falls under the Statute of Frauds, which requires certain contracts, including leases for a term longer than one year, to be in writing in order to be enforceable. This is to prevent disputes and ensure that there is clear evidence of the agreement between the parties involved.

    Rate this question:

  • 6. 

    According to contract law, every valid contract is also what

    • Void

    • Enforceable

    • Enforceable or unenforceable

    • Voidable

    Correct Answer
    A. Enforceable or unenforceable
    Explanation
    According to contract law, every valid contract is enforceable or unenforceable. This means that a contract can either be legally enforced by the parties involved or it may not be enforceable due to certain legal reasons. The enforceability of a contract depends on various factors such as the presence of all essential elements, legality of the subject matter, and the capacity of the parties involved to enter into a contract. Therefore, a valid contract can fall into either category of being enforceable or unenforceable.

    Rate this question:

  • 7. 

    What is an important legal characteristic of an option to buy agreement

    • The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed

    • The optioner must perform if the optionee takes the option but the optionee is under no obligation to do so

    • The contract can be executed at no cost to the optionee

    • It is a bilateral agreement

    Correct Answer
    A. The optioner must perform if the optionee takes the option but the optionee is under no obligation to do so
    Explanation
    The important legal characteristic of an option to buy agreement is that the optioner, the party granting the option, is obligated to perform if the optionee, the potential buyer, decides to exercise the option and purchase the property. However, the optionee is not obligated to buy the property even after taking the option. This means that the optionee has the right to choose whether or not to proceed with the purchase, while the optioner is bound to fulfill their obligations if the optionee decides to proceed. This characteristic makes it a bilateral agreement, as both parties have certain rights and obligations.

    Rate this question:

  • 8. 

    Which of the following is a good example of a unilateral contract

    • A listing agrement

    • A personal services agreement

    • A sale contract

    • An option to buy

    Correct Answer
    A. An option to buy
    Explanation
    An option to buy is a good example of a unilateral contract because it is an agreement where only one party, the option holder, is obligated to perform. The option holder has the right, but not the obligation, to purchase the specified item or property within a certain time frame. The other party, the option grantor, is not obligated to sell the item or property if the option holder chooses not to exercise their option. This unilateral contract provides the option holder with the opportunity to decide whether or not to proceed with the purchase, giving them the unilateral power to make the final decision.

    Rate this question:

  • 9. 

    A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing.  The seller disagrees, crosses out the points clause, then signs and returns the doc to the buyer.  At this point, assuming all other contract validity items are in order, what is the status of the offer?

    • It is an accepted offer; therefore valid contract

    • Invalid contract

    • It is an offer

    • It is an invalid offer

    Correct Answer
    A. It is an offer
    Explanation
    The given scenario describes a situation where the seller disagrees with the condition stated in the offer and crosses out that clause before signing and returning the document to the buyer. At this point, the offer is still considered an offer because the seller has not accepted the terms as stated by the buyer. Until both parties agree and accept the terms, it does not become a valid contract. Therefore, the correct answer is that it is an offer.

    Rate this question:

  • 10. 

    When is a contract terminated

    • After a cooling period

    • After both parties have signed it

    • After it is performed

    • After the parties agree to their respective promises

    Correct Answer
    A. After it is performed
    Explanation
    A contract is terminated after it is performed because once both parties have fulfilled their obligations and completed the terms of the contract, there is no longer a need for the contract to remain in effect. Performance of the contract signifies that both parties have fulfilled their promises and the contract has served its purpose. Therefore, it is considered terminated at this point.

    Rate this question:

  • 11. 

    Tim and Laura signed a sales contract with a mortgage contingency clause.  They do not try to get a loan, and when the deadline for a loan approval draws near, they tell their agent they couldn't get a loan.  which statement is true?

    • They can cancel the contract and get their earnest money refunded

    • The mortgage contingency clause is not valid

    • The sellers must give them an extension to secure the loan

    • Tim and Laura have no acted in good faith so they cannot get their earnest money back

    Correct Answer
    A. Tim and Laura have no acted in good faith so they cannot get their earnest money back
    Explanation
    Tim and Laura cannot get their earnest money back because they did not act in good faith by not attempting to obtain a loan and informing their agent about it only when the loan approval deadline was approaching. This behavior goes against the terms of the sales contract with a mortgage contingency clause.

    Rate this question:

  • 12. 

    Which of the following is one of the purposes of the Lawyers' Fund

    • To protect lawyers who are sued by clients

    • To compel real estate companies to use standard forms

    • To reimburse clients for money that was misused by attorney

    • To prevent licensees from preparing real estate contracts

    Correct Answer
    A. To reimburse clients for money that was misused by attorney
    Explanation
    The purpose of the Lawyers' Fund is to reimburse clients for money that was misused by an attorney. This means that if a client's money is mishandled or misused by their lawyer, the Lawyers' Fund will provide compensation to the client. This helps to protect clients and ensure that they are not financially harmed by the actions of their attorney.

    Rate this question:

  • 13. 

    Broker Sara completes a preprinted sales contract.  The contract was not approved by the local Real Estate Board nor the bar association.  Which is true

    • Sara cannot legally fill out this contract

    • She can fill out the contract but she cannot collect the earnest money deposit

    • Sara can use a binder but not a sales contract

    • She can use this contract as long as it contains an attorney review clause

    Correct Answer
    A. She can use this contract as long as it contains an attorney review clause
    Explanation
    In this scenario, the correct answer is "She can use this contract as long as it contains an attorney review clause." This means that Sara can still fill out the contract, but it must include a clause that allows for attorney review. This clause ensures that both parties have the opportunity to have their attorney review the contract and make any necessary changes before it becomes legally binding. Without this clause, using the contract would not be legally permissible.

    Rate this question:

  • 14. 

    Which one is least like a binder?

    • Receipt

    • Contract for sale

    • Agreement

    • Purchase offer

    Correct Answer
    A. Contract for sale
    Explanation
    A contract for sale is least like a binder because it is a legally binding agreement between a buyer and a seller for the purchase of goods or services. While all the other options (receipt, agreement, purchase offer) can be considered as binders, a contract for sale is a more formal and legally enforceable document that outlines the terms and conditions of a specific transaction.

    Rate this question:

  • 15. 

    The down payment amount on a residential property in NY is around what percentage of the purchase price?

    • 10%

    • 15

    • 20

    • 25

    Correct Answer
    A. 10%
    Explanation
    In NY, the down payment amount on a residential property is typically around 10% of the purchase price. This means that if the purchase price of the property is $100,000, the down payment would be $10,000. The down payment is an upfront payment made by the buyer to secure the property and is usually a percentage of the total purchase price. A 10% down payment is a common requirement in many real estate transactions and helps to reduce the risk for the lender.

    Rate this question:

  • 16. 

    What is a lead-based paint disclosure used for

    • All residential property

    • Homes built prior to 1978

    • Only commerical property

    • Only rental property

    Correct Answer
    A. Homes built prior to 1978
    Explanation
    A lead-based paint disclosure is used for homes built prior to 1978. This is because lead-based paint was commonly used in residential properties before 1978, and it poses a health risk, especially to young children. The disclosure is meant to inform potential buyers or renters about the presence of lead-based paint in the property, allowing them to make an informed decision and take necessary precautions if they choose to proceed with the purchase or rental.

    Rate this question:

  • 17. 

    Broker Amanda prepares a sale contract, collects the earnest money and deposits it in her business account.  Which statement is true?

    • Amanda has illegally commingled the earnest money with her own money

    • Only attorneys can hold and deposit earnest money

    • Amanda must deposit the money in the Lawyers' Fund

    • Amanda has done nothing wrong

    Correct Answer
    A. Amanda has illegally commingled the earnest money with her own money
    Explanation
    Amanda has illegally commingled the earnest money with her own money. This means that she has mixed the earnest money, which belongs to someone else, with her own personal funds, which is against the law. Commingling funds is a breach of fiduciary duty and can lead to legal consequences.

    Rate this question:

  • 18. 

    If a real estate agent prepares a sales contract and an attorney makes modifications to it, which statement is true

    • The contract must be rewritten and signed again

    • All parties must initial the changes

    • The contract becomes unenforceable

    • The contract will be valid after a 5-day waiting period

    Correct Answer
    A. All parties must initial the changes
    Explanation
    When an attorney makes modifications to a sales contract prepared by a real estate agent, all parties must initial the changes. This is because the modifications made by the attorney are considered legally significant and require the acknowledgment and agreement of all parties involved. Initialing the changes ensures that all parties are aware of and agree to the modifications made to the contract.

    Rate this question:

  • 19. 

    Which of these is a common property description

    • Tax map

    • Survey

    • Street address

    • Subdivision plat map

    Correct Answer
    A. Street address
    Explanation
    A street address is a common property description as it provides a specific location for a property. It includes the name of the street, house number, and sometimes additional information such as the city or zip code. A street address is commonly used for mailing purposes, navigation, and identifying the location of a property. It is a widely recognized and understood method of describing property.

    Rate this question:

  • 20. 

    Which of the following docs is not one that will be needed at a closing

    • Prior deed

    • Copy of property tax bill

    • Prior title insurance policy

    • Seller's credit report

    Correct Answer
    A. Seller's credit report
    Explanation
    A seller's credit report is not one of the documents that will be needed at a closing. The closing process typically involves the transfer of ownership from the seller to the buyer, and the focus is on legal and financial documentation related to the property. A seller's credit report, which provides information about the seller's creditworthiness, is not directly relevant to the closing process.

    Rate this question:

  • 21. 

    Which is true?

    • A borrower cannot qualify for a conventional load unless he or she can make a 20% down payment

    • Private mortgage insurance is available for FHA loans

    • A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price

    • A lender can continue to collect PMI payments until the homeowner's equity reaches 25%

    Correct Answer
    A. A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price
    Explanation
    The correct answer states that a borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price. This means that once the borrower has paid off 20% of the loan, they can ask the lender to stop charging them for private mortgage insurance (PMI). PMI is typically required when a borrower makes a down payment of less than 20% on a conventional loan, so once the borrower has built up enough equity, they can eliminate this additional cost.

    Rate this question:

  • 22. 

    Which loan covers the period of time between the end of one mortgage and the beginning of another?

    • Construction

    • Wraparound

    • Open-end

    • Bridge

    Correct Answer
    A. Bridge
    Explanation
    A bridge loan is a short-term loan that covers the gap between the end of one mortgage and the beginning of another. It is typically used when a homeowner is selling their current home and buying a new one, but needs funds to finance the new purchase before the sale of the old home is complete. The bridge loan allows the homeowner to access the necessary funds to make the new purchase, with the expectation that it will be repaid once the old home is sold.

    Rate this question:

  • 23. 

    In which of the following types of loans is the payment allocated only to interest?

    • Straight

    • Balloon

    • Amortized

    • Adjustable rate

    Correct Answer
    A. Straight
    Explanation
    In a straight loan, the payment is allocated only to interest. This means that the borrower is only required to make interest payments during the term of the loan, and the principal amount does not need to be repaid until the end of the loan term. This type of loan is commonly used for short-term financing or bridge loans, where the borrower expects to receive a large sum of money in the future to repay the principal amount.

    Rate this question:

  • 24. 

    Which organization insures loans made by approved lending institutions

    • SONYMA

    • FHA

    • RHS

    • VA

    Correct Answer
    A. FHA
    Explanation
    FHA stands for Federal Housing Administration. This organization insures loans made by approved lending institutions.

    Rate this question:

  • 25. 

    What is the provision of a mortgage that outlines what will happen if the borrower fails to pay the mortgage called?

    • Attachment

    • Covenant of seisin

    • Acceleration clause

    • Defeasance clause

    Correct Answer
    A. Acceleration clause
    Explanation
    The provision of a mortgage that outlines what will happen if the borrower fails to pay the mortgage is called an acceleration clause. This clause allows the lender to demand immediate payment of the remaining balance of the loan if the borrower defaults on their mortgage payments. It essentially accelerates the repayment schedule and gives the lender the right to take legal action to recover the debt.

    Rate this question:

  • 26. 

    What is the interest rate on an ARM tied to?

    • Margin

    • Index

    • Payment cap

    • Rate cap

    Correct Answer
    A. Index
    Explanation
    An adjustable rate mortgage (ARM) is tied to an index, which is a benchmark interest rate that fluctuates over time. The interest rate on an ARM is typically set as the index rate plus a margin, which is a fixed percentage determined by the lender. The index reflects changes in the broader financial market, such as the prime rate or the London Interbank Offered Rate (LIBOR). Therefore, the interest rate on an ARM will adjust periodically based on the changes in the index, allowing the lender to pass on the fluctuations in interest rates to the borrower.

    Rate this question:

  • 27. 

    Which of the following is not true about reverse annuity mortgages?

    • The lender makes payments to the borrower

    • This mortgage type is popular among the elderly

    • The borrower pays a fixed rate of interest

    • The loan must be repaid before the borrower's death

    Correct Answer
    A. The loan must be repaid before the borrower's death
    Explanation
    Reverse annuity mortgages do not require the loan to be repaid before the borrower's death. This type of mortgage allows the borrower to receive payments from the lender, making it popular among the elderly. The borrower does not have to make any payments, as the lender is the one making payments to the borrower. Additionally, reverse annuity mortgages typically have a fixed rate of interest.

    Rate this question:

  • 28. 

    In an effort to make it possible for veterans returning from WWII to purchase a home, the Veterans Admin offered the opportunity for veterans to purchase a home with

    • A 1% down payment

    • A 3% down payment

    • A 4% down Payment

    • No money down

    Correct Answer
    A. No money down
    Explanation
    The correct answer is "no money down." The explanation for this is that the Veterans Admin offered veterans returning from WWII the opportunity to purchase a home without having to make any down payment. This was done in an effort to make it easier for veterans to afford a home after their service. By eliminating the need for a down payment, the Veterans Admin aimed to provide a more accessible option for veterans to become homeowners.

    Rate this question:

  • 29. 

    A blanket mortgage:

    • Covers more than one piece of property

    • Entails entering into 2 agreements simultaneously

    • Is subordinate to a first mortgage

    • Reduces the monthly payment for a borrower during the initial years

    Correct Answer
    A. Covers more than one piece of property
    Explanation
    A blanket mortgage is a type of mortgage that covers more than one piece of property. This means that instead of taking out separate mortgages for each individual property, the borrower can use a blanket mortgage to finance multiple properties under one loan. This can be advantageous for real estate investors or developers who own multiple properties and want to streamline their financing. By consolidating multiple properties into one loan, the borrower can potentially simplify their financial management and potentially qualify for better loan terms.

    Rate this question:

  • 30. 

    Mark gets a home loan and the lender will charge him 3 points at closing.  If the loan is for $68,000 what will Mark be assessed in points

    • $680

    • $1360

    • $2040

    • $2720

    Correct Answer
    A. $2040
    Explanation
    Mark will be assessed 3 points on his home loan. Since the loan is for $68,000, each point will be equal to $680 (68,000 * 0.01 = 680). Therefore, Mark will be assessed a total of $2040 (3 * 680 = 2040) in points at closing.

    Rate this question:

  • 31. 

    Determining a borrower's ability to repay a loan and evaluating a property are known as what?

    • Qualification

    • Underwriting

    • Credit evaluation

    • Screening

    Correct Answer
    A. Underwriting
    Explanation
    Underwriting refers to the process of assessing a borrower's ability to repay a loan and evaluating the property involved. It involves analyzing the borrower's financial situation, credit history, and the value of the property to determine whether the loan should be approved and at what terms. This process helps lenders minimize risk and make informed decisions about granting loans.

    Rate this question:

  • 32. 

    Any loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac is called what?

    • A nonconforming loan

    • Step-rate loan

    • A jumbo loan

    • A conforming loan

    Correct Answer
    A. A jumbo loan
    Explanation
    A jumbo loan is the correct answer because it refers to any loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. These loan limits are the maximum amount of money that these government-sponsored enterprises will purchase or guarantee. Therefore, a loan that exceeds these limits is considered nonconforming and is commonly referred to as a jumbo loan.

    Rate this question:

  • 33. 

    Which of the following is a low loan-to-value ratio

    • Jake is getting a VA loan with no down payment

    • Sandy and Bill are putting 30% down on their home purchase

    • Alice is getting a conventional loan and making a 15% down payment

    • Tim and Gail have qualified for an FHA loan

    Correct Answer
    A. Sandy and Bill are putting 30% down on their home purchase
    Explanation
    Sandy and Bill are putting 30% down on their home purchase, which means they are borrowing only 70% of the total value of the home. This indicates a low loan-to-value ratio.

    Rate this question:

  • 34. 

    When a qualified borrower is approved for a mortgage loan, the loan is referred to as what?

    • "A" paper

    • "B" paper

    • "C" paper

    • "D" paper

    Correct Answer
    A. "A" paper
    Explanation
    When a qualified borrower is approved for a mortgage loan, the loan is referred to as "A" paper. This term is commonly used in the mortgage industry to describe loans that are considered to be of high quality and low risk. "A" paper loans typically have favorable terms and conditions, including low interest rates and flexible repayment options. Lenders are more likely to approve borrowers with good credit scores and stable income for "A" paper loans.

    Rate this question:

  • 35. 

    All of the following are primary mortgage market lenders except which

    • Investment groups

    • Credit unions

    • Mortgage brokers

    • Holding warehouse agencies

    Correct Answer
    A. Holding warehouse agencies
    Explanation
    Holding warehouse agencies are not primary mortgage market lenders. Primary mortgage market lenders include investment groups, credit unions, and mortgage brokers. Holding warehouse agencies typically provide short-term financing to mortgage lenders to fund the origination of mortgages, but they do not directly lend to borrowers like the other options mentioned.

    Rate this question:

  • 36. 

    When a lender is evaluating a buyer's ability to repay a loan, the lender looks at all of these items except which one?

    • Educational history

    • Past credit history

    • Present employment status

    • Liabilities

    Correct Answer
    A. Educational history
    Explanation
    When evaluating a buyer's ability to repay a loan, lenders typically consider factors such as past credit history, present employment status, and liabilities. However, educational history is not usually a significant factor in this evaluation process. Lenders are more concerned with the buyer's financial stability and ability to make timely loan payments, which are better assessed through factors such as credit history, employment status, and liabilities.

    Rate this question:

  • 37. 

    Which of the following is not prohibited by NY Anti-Predatory lending Law?

    • Balloon payments

    • Loan flipping

    • Discount points

    • Negative amortization

    Correct Answer
    A. Discount points
    Explanation
    Discount points are not prohibited by NY Anti-Predatory lending Law. This means that lenders are allowed to charge borrowers discount points, which are fees paid at closing to lower the interest rate on the loan. The law does prohibit other practices such as balloon payments, loan flipping, and negative amortization, which are considered predatory lending practices that can harm borrowers. However, discount points are not considered predatory and are allowed under the law.

    Rate this question:

  • 38. 

    Who is FNMA

    • Fannie mae

    • Ginnie mae

    • Fannie mac

    • Freddie mac

    Correct Answer
    A. Fannie mae
    Explanation
    Fannie Mae, short for the Federal National Mortgage Association, is a government-sponsored enterprise (GSE) in the United States. It was created to provide stability and liquidity to the mortgage market by purchasing and guaranteeing mortgages from lenders. Fannie Mae plays a crucial role in the housing finance system, helping to make homeownership more affordable and accessible for borrowers. It is not to be confused with Ginnie Mae or Freddie Mac, which are other GSEs with similar purposes but different roles and responsibilities.

    Rate this question:

  • 39. 

    Which statement about Ginnie Mae is false?

    • GM is a government agency

    • GM is a former gov agency that became a private corp in the 1970s

    • GM developed the first mortgage-backed security in 1970

    • GM guarantees that the monthly payments will be made every month

    Correct Answer
    A. GM is a former gov agency that became a private corp in the 1970s
    Explanation
    Ginnie Mae is not a former government agency that became a private corporation in the 1970s. It is a government agency that was established in 1968 as a subsidiary of the Department of Housing and Urban Development (HUD). Ginnie Mae's main role is to guarantee mortgage-backed securities, ensuring that investors receive timely payment of principal and interest on their investments. This helps to facilitate the flow of capital into the housing market and increase the availability of affordable housing options for Americans.

    Rate this question:

  • 40. 

    Regulation Z applies to which of these situations?

    • $35,000 farm loan

    • $50,000 restaurant loan

    • $75,000 condo loan

    • $85,000 warehouse loan

    Correct Answer
    A. $75,000 condo loan
    Explanation
    Regulation Z applies to consumer credit transactions, including loans for personal, family, or household purposes. It requires lenders to provide certain disclosures and protections to borrowers. In this case, the $75,000 condo loan falls under Regulation Z because it is a loan for personal or household purposes. The other loans mentioned, such as the farm loan, restaurant loan, and warehouse loan, may not fall under Regulation Z as they are not specifically for personal or household purposes.

    Rate this question:

  • 41. 

    What is the best definition of a master plan?

    • An annual review of all land use permits and zones

    • A comprehensive analysis of existing land use patterns in a market

    • A state or regional land use law requiring compliance on a county-by-county basis

    • A fusion of land use laws and local land use objective and strategies

    Correct Answer
    A. A fusion of land use laws and local land use objective and strategies
    Explanation
    A master plan is a comprehensive approach that combines land use laws with local land use objectives and strategies. It involves integrating various regulations and guidelines to create a cohesive plan for the use and development of land in a specific area. This approach ensures that land use decisions are based on a combination of legal requirements and the specific goals and objectives of the local community.

    Rate this question:

  • 42. 

    What do we call programs that encourage a shift in development away from environmentally sensitive areas to more appropriate areas

    • Moratoriums

    • Planned development units

    • Transfer of development rights

    • Rezoning

    Correct Answer
    A. Transfer of development rights
    Explanation
    Transfer of development rights refers to programs that encourage a shift in development away from environmentally sensitive areas to more appropriate areas. This involves the transfer of development rights from one property to another, allowing for development in areas that are better suited for it while preserving environmentally sensitive areas. This approach helps to balance the need for development with the protection of natural resources and sensitive ecosystems.

    Rate this question:

  • 43. 

    If a municipality exerts its power of eminent domain against a certain property owner, what happens?

    • The owner must pay higher property taxes or give up the property

    • The owner must cede an easement without receiving any compensation

    • The municipality annexes the property

    • The owner must sell the property or grant an easement to the municipality for just compensation

    Correct Answer
    A. The owner must sell the property or grant an easement to the municipality for just compensation
    Explanation
    When a municipality exerts its power of eminent domain against a certain property owner, the owner is required to either sell the property to the municipality or grant an easement to the municipality. In either case, the owner is entitled to receive just compensation for their property or the easement. This means that the owner will be compensated fairly for the value of their property or the rights they are granting to the municipality.

    Rate this question:

  • 44. 

    A non-profit organization wants to erect a much needed daycare in a residential zone.  The local authorities grant permission by allowing what?

    • An illegal nonconforming use

    • A special exception

    • A variance

    • A license

    Correct Answer
    A. A special exception
    Explanation
    A special exception is granted by the local authorities to allow the non-profit organization to erect a daycare in a residential zone. This means that although the daycare is not conforming to the current zoning regulations, it is allowed due to the special circumstances and benefits it brings to the community.

    Rate this question:

  • 45. 

    In most jurisdictions, who manages the master plan

    • The mayor

    • Board of equalization

    • Planning board

    • Zoning board of adjustment

    Correct Answer
    A. Planning board
    Explanation
    In most jurisdictions, the planning board is responsible for managing the master plan. The planning board is a governmental body that is typically tasked with making decisions and recommendations regarding land use, zoning regulations, and urban development. They work to create and implement a comprehensive master plan that outlines the long-term goals and vision for the community's growth and development. This involves considering various factors such as infrastructure, transportation, housing, and environmental concerns. The planning board plays a crucial role in shaping the physical and social aspects of a city or town.

    Rate this question:

  • 46. 

    The approval process for development of multiple properties in an area includes submission of which of these

    • A covenant of restrictions

    • A plat of subdivision

    • A court order

    • A developer's pro forma

    Correct Answer
    A. A plat of subdivision
    Explanation
    The approval process for development of multiple properties in an area requires the submission of a plat of subdivision. A plat of subdivision is a detailed map or plan that shows the division of a piece of land into multiple lots or parcels. It includes information such as lot boundaries, dimensions, streets, and easements. This document is essential for ensuring that the development is in compliance with zoning regulations and can help prevent potential issues or disputes in the future.

    Rate this question:

  • 47. 

    What is the principal mechanism for implementing a master plan

    • Zoning

    • Referendum

    • Public election

    • Property management

    Correct Answer
    A. Zoning
    Explanation
    Zoning is the principal mechanism for implementing a master plan. Zoning involves dividing land into different zones or areas with specific regulations and restrictions on how the land can be used. It allows local governments to control and regulate the development and use of land in accordance with the goals and objectives of the master plan. Zoning helps ensure that land is used in a way that is consistent with the overall vision and objectives of the community.

    Rate this question:

  • 48. 

    In addition to government entities, which of these organizations may be able to condemn property under the power of eminent domain

    • Financial institutions

    • Major employers

    • Public utilities

    • Neighborhood associations

    Correct Answer
    A. Public utilities
    Explanation
    Public utilities may be able to condemn property under the power of eminent domain. Public utilities are organizations that provide essential services to the public, such as electricity, water, and gas. They often require access to land for infrastructure development and expansion. Eminent domain allows the government and certain authorized entities to take private property for public use, with fair compensation to the property owner. Public utilities, being entities that provide essential services, may have the authority to exercise eminent domain to acquire the necessary land for their operations.

    Rate this question:

  • 49. 

    What is the fundamental purpose of a building permit?

    • To restrict the number of new development projects

    • To ensure that improvements comply with codes

    • To establish the basis for inspection

    • To promote certificates of occupancy

    Correct Answer
    A. To ensure that improvements comply with codes
    Explanation
    The fundamental purpose of a building permit is to ensure that improvements comply with codes. Building permits are required by local governments to ensure that construction projects meet safety standards and adhere to building codes. They help to ensure that buildings are constructed in a way that is safe for occupants and the surrounding community. By obtaining a building permit, individuals or organizations must adhere to specific regulations and guidelines, promoting compliance with codes and regulations to ensure the safety and integrity of the structure.

    Rate this question:

Quiz Review Timeline (Updated): Jul 9, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jul 09, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 18, 2011
    Quiz Created by
    Hbabitt91

Related Topics

Recent Quizzes

Quiz: Test Your Property-Buying Knowledge! Quiz: Test Your Property-Buying Knowledge!
Finding An Apartment Math Quiz Finding An Apartment Math Quiz
Key Benefits (6/13 Test for Associate Members) Key Benefits (6/13 Test for Associate Members)
Leasing Agent Quiz: Trivia Exam! Leasing Agent Quiz: Trivia Exam!
Test your Real Estate Knowledge! Trivia Questions Quiz Test your Real Estate Knowledge! Trivia Questions Quiz
Deed of trust: How well do you know about Real Estate? Trivia Quiz Deed of trust: How well do you know about Real Estate? Trivia Quiz
Texas Real Estate Exam Prep Texas Real Estate Exam Prep
Florida Real Estate Exam Florida Real Estate Exam
Real Estate Agent / Broker / Salesperson Exam Prep Real Estate Agent / Broker / Salesperson Exam Prep

Featured Quizzes

Basketball Quiz Questions And Answers Basketball Quiz Questions And Answers
What Is My Ethnicity? Let's Take Ethnicity Quiz What Is My Ethnicity? Let's Take Ethnicity Quiz
Harry Potter House Quiz: Which Hogwarts House Do You Belong To? Harry Potter House Quiz: Which Hogwarts House Do You Belong To?
Articles Quiz With Answers Articles Quiz With Answers
Which Sonic Character Are You? Which Sonic Character Are You?
What Is My Talent? What Is My Talent?
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.