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PSI CH 4

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1. When the county board adversely acquires land for a freeway, it is exercising the power of

1. zoning.
2. environmental protection laws.
3. escheat.
4. eminent domain.
1. (4) Eminent domain is the right of the government to take private land for public use or public benefit. The property owner has a right of appeal and must be paid just compensation. Zoning and environmental protection laws do not provide monetary compensation in the event that a property owner suffers a loss in value. Escheat is a law that provides for title to real estate to pass to the state when an owner dies intestate and leaves no heirs or abandons the property. (34)
2. One example of the use of police power by a city is

1. taxation.
2. eminent domain.
3. laches.
4. environmental protection laws.
2. (4) Taxation and eminent domain are not exercised under the police power. Laches refers to the equitable doctrine that bars a legal claim because of undue delay in asserting the claim. (34)
3. A building housing an insurance agency existed before the property was rezoned residential. The insurance agency building has now grandfathered in. This is an example of

1. a variance.
2. a nonconforming use.
3. spot zoning.
3. (2) A nonconforming use property is one that existed before the zoning classification
changed. It was there first, hence the name grandfather clause. A variance allows one to deviate from the zoning ordinance. Spot zoning allows for reclassification of land for nonconforming use. A planned unit development (PUD) creates a special zoning district for a developer. (35)
4. An investor purchased a large parcel of land zoned for commercial development, but right after the purchase he learned that the land was rezoned by the city for recreational use. This is an example of

1. eminent domain.
2. downzoning.<
4. (2) Downzoning involves an economic taking, whereas eminent domain results in a complete taking. A planned unit development is an example of contract zoning in that a developer has his or her plan approved by the municipality, thereby establishing a special planning district based on the developer's own plans. A nonconforming use is allowed to continue after a zoning ordinance prohibiting it has been established for the area. (35)
5. Zoning laws that include tree-cutting rules, dredging regulations, and waste disposal exemplify

1. subdivision regulations.
2. city plan specifications.
3. shoreline regulations.
4. deed restrictions.
5. (3) Shoreline regulations are zoning laws that reflect environmental and safety concerns within a given distance of all navigable waters. Subdivision regulations deal with location of streets, etc., while city plan specifications or master plans guide the growth development of a community. Deed restrictions are private land-use controls. (36)
6. Radon generally enters a house through the

1. roof.
2. basement floor.
3. chimney.
4. windows.
6. (2) Radon may also enter the house through the basement walls, crawlspace, or uncovered sump pit areas. (37)
7. A mineral used for many years as insulation on heat ducts is

1. asbestos.
2. lead.
3. urea-formaldehyde foam.
4. radon.
7. (1) Lead was used in paint and plumbing systems. UFFI was used to insulate buildings. Radon was discussed above. (38)
8. Which of the following was an insulating material pumped between the walls of a house and banned from use in the 1970s?

1. Asbestos
2. Radon
3. Urea-formaldehyde foam
4. Lead
8. (3) Asbestos was used as insulation on heating pipes and ducts as well as in floor tile and roofing material. Radon is an odorless radioactive gas that generally enters through the basement of a house. Lead was used in water pipes and paint. (38)
9. A material once used extensively because of its ability to impede water flow is

1. lead.
2. asbestos.
3. urea-formaldehyde foam.
4. radon.
9. (1) Lead impedes water flow. Asbestos is still used today but is often encapsulated with latex paint to prevent it from becoming airborne (friable). UFFI has been banned and replaced today with a nontoxic material that is sprayed into a wall cavity and then expands. Radon is an odorless gas that can migrate into a house through the basement floor as it works its way up through the ground under the house. (38)
10. Which of the following statements most correctly describes a waste-disposal site?

1. Construction is relatively unregulated by state authorities.
2. Landfills at appropriate locations have been sources of major problems.
3. Real
10. (4) Agents should be aware of landfills and make appropriate disclosures. (39)
11. All of the following may be sources of groundwater contamination EXCEPT

1. underground storage tanks.
2. waste-disposal sites.
3. pesticides used on farms.
4. cement.
11. (4) Leaking underground storage tanks are a major source of groundwater contamination. Pesticide use and waste disposal also may contaminate groundwater. (39)
12. All of the following requirements generally are covered by building codes EXCEPT

1. fire-prevention standards.
2. electrical wiring.
3. sanitary equipment.
4. minimum number of square feet of land area per apartment unit.
12. (4) The minimum number of square feet of land area per apartment unit would be regulated by the local zoning ordinance. (35)
13. Strict liability means that

1. an owner is responsible to an injured party without excuse.
2. each owner is personally responsible for damages as a whole.
3. liability extends to people who have owned the site in the past.
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13. (1) For example, an individual who knowingly buys contaminated land can also be liable for damages even though she had no involvement in the events leading up to the contamination. (40)
14. Which of the following terms refers to a dangerous health hazard that can occur when asbestos ages and starts to disintegrate and become airborne?

1. Radon
2. Friable
3. Bacteria
4. Oxidation
14. (2) Friable is the term that describes the dangerous condition that exists when asbestos begins to deteriorate and becomes airborne. Radon is a radioactive by-product of radium. Various forms of bacteria are found in water. Oxidation is another name for rust. (38)
15. Which of the following statements concerning deed restrictions is NOT true?

1. Violation of a deed condition may result in the forfeiture of title to real property.
2. Encumbrances in the form of deed conditions generally run with res
15. (3) Restrictive covenants are statements in a deed that limit the use of ownership of real estate. The breach of a covenant would result in damages. The breach of a condition may result in the loss of title. (41)
16. Which of the following best describes a buffer zone?

1. An industrial park located between a shopping center and a residential neighborhood
2. A high-rise apartment complex located between a commercial development and a townhouse subd
16. (3) A buffer zone is a land area that separates one land use from another such as residential from commercial, as when a recreational area is located between a residential area and an office park. (35)
17. Police-power controls include all of the following EXCEPT

1. city plan specifications.
2. building codes.
3. zoning.
4. deed restrictions.
17. (4) Police-power controls are public land-use controls. Only deed restrictions are private land-use controls, and therefore incorrect. (34)
18. A tire company has a manufacturing plant located in an area that recently has been zoned residential. The company is allowed to operate under the new zoning ordinance. However, if the plant is completely destroyed by fire, the company may
18. (2) If a nonconforming use is destroyed, as in the case of the tire manufacturing plant, it cannot be rebuilt without the approval of the zoning authority. (35)
19. Which of the following provides for monetary compensation to an owner in the event that the owner's property is taken to build a new freeway?

1. Taxation
2. Condemnation
3. Escheat
4. Police power
19. (2) Eminent domain is the right or the authority of the government to acquire private property for public use or public benefit. Condemnation is the process for actually acquiring the property. Escheat is a state law that provides that if a decedent dies intestate and has no heirs, the decedent's property will revert to the state. Taxation is a process by which the government raises funds necessary for it to operate. The police power is the right of the government to protect the public welfare through such measures as zoning and building codes. (34)
20. A recorded restriction is best described as

1. a limitation on use.
2. a condition.
3. alien.
4. a lien and an encumbrance.
20. (1) A restriction would be classified as an encumbrance. The violation of a restriction would not generally result in loss of tide as it would in the case of a violation of a condition. (35)
21. A property is assessed at $300,000, the taxing body uses a 52% assessment ratio (rollback percentage), and 40 mills is the tax rate. What is the monthly property tax?

1. $520
2. $1,200
3. $1,560
4. $6,240
21. (1) $300,000 x 52% = 156,000 x 4% = $6,240
$6,240 divided by 12 = $520 monthly tax (36)
22. A buyer made an offer on a building subject to an inspection. During the due diligence period disintegrating airborne asbestos fibers were discovered. This condition is called

1. encapsulating.
2. friable.
3. disintegrating.
22. (2) Friable describes deteriorating asbestos. Encapsulation remedies the problem by painting over the asbestos with a heavy latex paint. (38)
23. A potential homeowner should have a certified inspector check around toilets, showers, sinks, and basement walls to detect what kind of problem?

1. radon
2. carpenter ants
3. methane gas
4. mold
23. (4) Mold is the end result of a moisture problem. Once mold dries it can become airborne, and then it poses a health threat to those allergic to the mold spores. (40
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