Government Powers in Real Estate

Questions and Answers

What is the agent's responsibility if the seller or lessor fails to comply?

The agent is responsible along with the seller or lessor, unless the failure involves undisclosed lead-based paint information.

What pamphlet must be provided during the contract process regarding lead-based paint?

Protect Your Family From Lead In Your Home.

A 'Lead Warning Statement' must be attached to the ______.

contract

What period is provided for conducting a paint inspection or risk assessment for lead-based paint?

10 days Signup and view all the answers

What is Radon?

An odorless, colorless, radioactive gas that enters through the basement. Signup and view all the answers

Radon gas can be easily ______.

mitigated Signup and view all the answers

What should an agent tell a buyer if they would like to have a radon test done?

Hire a professional. Signup and view all the answers

What year was asbestos banned?

1978 Signup and view all the answers

What are some health risks associated with inhaling asbestos fibers?

All of the above Signup and view all the answers

Where might asbestos be found? Match the locations with the descriptions.

Attic and wall insulation = Produced containing vermiculite Vinyl floor tiles = Backing on vinyl sheet flooring and adhesives Roofing shingles = Used for roofing and siding Textured paint = Used on walls and ceilings Wood-burning stoves = Protected with asbestos paper or cement sheets Hot water pipes = Coated with asbestos material Furnaces = With asbestos insulation Automobile parts = Clutches and brakes Signup and view all the answers

Which of the following is not one of the four government powers? (P for Police Power, E for Eminent Domain, T for Taxation, E for Escheat)

Land Rights Signup and view all the answers

What is Police Power?

Police power is how the government regulates real estate, including zoning laws and building codes. Signup and view all the answers

Police power is designed to take property away from you.

False Signup and view all the answers

What does 'ad valorem' mean?

According to value, referring to property taxes based on fair market value. Signup and view all the answers

What is an Assessor?

An official who determines the assessed valuation of real property. Signup and view all the answers

What is a special assessment?

A charge for specific public projects Signup and view all the answers

What must a homeowner prove to receive a variance?

Substantial financial hardship. Signup and view all the answers

Only the government can exercise eminent domain.

True Signup and view all the answers

What is a Grandfather Clause in zoning?

Permission to continue an activity that was once permissible but is no longer allowed. Signup and view all the answers

What is 'inverse condemnation'?

A situation where the government takes property but fails to pay required compensation. Signup and view all the answers

A homestead exemption helps shield a home from some creditors following the death of a homeowner spouse or the declaration of _____ .

bankruptcy Signup and view all the answers

What is the purpose of a zoning variance?

To allow deviations due to hardship Signup and view all the answers

What are taxing inequalities and how are they corrected?

Taxing inequalities refer to disparities in property tax assessments, corrected through an equalizer factor. Signup and view all the answers

What are setback limits?

The difference between the lot line and the improvements. Signup and view all the answers

What is bulk zoning?

A method used to control density and overcrowding by restricting setbacks, building height, or open area ratio. Signup and view all the answers

What does aesthetic zoning require?

New structures must match an existing architectural style. Signup and view all the answers

What is incentive zoning?

Provides an incentive to a developer to offer a specific unplanned feature in exchange for allowances not usually permitted. Signup and view all the answers

What is cluster zoning?

An area where residential density is described overall, allowing flexibility in placing residences in groups with open space. Signup and view all the answers

What does conservation zoning aim to do?

Keep the parcel in its natural or agricultural state. Signup and view all the answers

What is a conservation easement?

An area where development is not permitted to leave the natural habitat untouched. Signup and view all the answers

What does noncumulative zoning permit?

Only one use with no exceptions. Signup and view all the answers

What are holding zones?

Temporarily zoned for low-intensity uses to restrict development before proper zoning occurs. Signup and view all the answers

What does inclusionary zoning specify?

Inclusions within a development, such as a playground or a percentage of homes being affordable for low-income families. Signup and view all the answers

What is exclusionary zoning?

A zoning ordinance that achieves a form of economic or racial segregation. Signup and view all the answers

What is the purpose of the National Flood Insurance Program (NFIP)?

To enable property owners to purchase insurance against flooding and requires flood insurance for secured loans. Signup and view all the answers

What defines wetlands?

Areas where water is at, near, or above the land surface long enough to support aquatic vegetation. Signup and view all the answers

What is a flood plain?

Land adjacent to a stream or river that occasionally experiences flooding. Signup and view all the answers

What does the EPA regulate?

The production and distribution of commercial and industrial chemicals to prevent harm to health and the environment. Signup and view all the answers

What is the Toxic Substances Control Act of 1976 (TSCA)?

It provides the EPA with authority to require reporting and restrictions on chemical substances. Signup and view all the answers

What does CERCLA stand for?

Comprehensive Environmental Response, Compensation, and Liability Act. Signup and view all the answers

What do short-term removals refer to in the context of hazardous waste management?

Actions taken to address immediate releases or threats requiring prompt response. Signup and view all the answers

What are long-term remedial response actions?

Actions that permanently reduce dangers from hazardous substance releases. Signup and view all the answers

What defines a potentially responsible party (PRP)?

A person who may be liable for remediation under any state or federal law. Signup and view all the answers

What is SARA?

Superfund Amendments and Reauthorization Act of 1986, which amended CERCLA. Signup and view all the answers

What is the purpose of the Brownfields Revitalization and Environmental Restoration Act?

To rejuvenate deserted and defunct toxic industrial waste sites. Signup and view all the answers

What defines a brownfield site?

Real property potentially complicated by the presence of hazardous substances. Signup and view all the answers

What is the aim of land revitalization?

To put previously contaminated properties back into productive use. Signup and view all the answers

What is hazardous waste?

Waste that could cause or contribute to adverse effects on human health or the environment if improperly managed. Signup and view all the answers

What is environmental contamination?

The presence of hazardous substances that pose risks to the environment. Signup and view all the answers

What is the Environmental Impact Statement (EIS)?

A document required by NEPA for actions significantly affecting environmental quality. Signup and view all the answers

What is lead poisoning?

A potential cause of mental retardation in children. Signup and view all the answers

What does the Lead-Based Paint Disclosure Act require?

Gives the buyer ten days after an accepted offer to inspect a home built before 1978. Signup and view all the answers

What must sellers disclose regarding lead hazards?

Known lead-based paint and lead hazard information before selling homes built before 1978. Signup and view all the answers

What key information must real estate agents provide about lead hazards?

Important information about lead-based paint and hazards before a sale. Signup and view all the answers

Study Notes

Government Powers

Four main powers of government: Police Power, Eminent Domain, Taxation, Escheat (acronym: PETE).

Police Power

Regulates real estate through laws like zoning, building codes, and safety regulations.
Aims to set standards rather than take property, therefore no compensation is paid to owners affected.

Taxation

A financial charge on real estate supporting government services; primary revenue source for local entities.
Special assessments apply for specific improvements like water lines and road paving.

Property Taxes

Ad valorem taxes based on property value, calculated through assessed values and local real estate data.
Tax rates may be expressed in mills, dollars per hundred, or dollars per thousand.

Assessment Process

Assessors determine property values for tax purposes; assessed value is a percentage of true value.
Special assessments target properties benefitting from specific public projects.

Eminent Domain

The government can appropriate property for public use with fair compensation, often including utilities.
Inverse Condemnation allows property owners to seek compensation if not properly compensated.

Zoning Laws

Control land use through municipal powers, requiring public hearings for changes.
Master plans guide zoning ordinances and land use; zoning divides land into distinct districts.

Zoning Variances and Permits

Variances allow deviations from zoning laws due to potential financial hardship.
Conditional use permits grant exceptions for specific uses not typically allowed in a zone.

Non-Conforming Uses

Existing uses or structures before a zoning change are considered legal nonconforming uses, preserving their legality.

Types of Zoning

Spot zoning, density zoning, downzoning (restrictive), and upzoning (less restrictive) affect land use.
Buffer zones separate differing zoned areas, while bulk zoning controls density through restrictions.

Special Zoning Concepts

Aesthetic zoning requires architectural conformity; incentive zoning encourages developers to fulfill specific public needs.
Cluster zoning permits density with flexibility in layout; conservation zoning preserves natural states.

Additional Zoning Regulations

Holding zones restrict development until proper planning occurs; inclusionary zoning mandates affordable housing features.
Setback regulations determine structural distances from property lines for urban planning and safety.

Governing Officials

The treasurer manages tax collection, while the Board of Equalization ensures equitable assessments.

Taxes and Liens

Properties with unpaid taxes can incur tax liens, leading to potential tax sales to cover debts.### Exclusionary Zoning
Designed to create economic or racial segregation through zoning ordinances.
Restricts land use to high-cost, low-density residential developments.
Limits access for low to moderate-income families, often excluding minority groups.

Flood Zones and National Flood Insurance Program (NFIP)

NFIP allows property owners in participating communities to buy flood insurance.
Required for loans secured by properties in flood-prone areas.
Aims to provide insurance as an alternative to disaster assistance for flood damage.

Wetlands

Defined as areas where water is present at or near the surface, supporting aquatic or hydrophytic vegetation.
Conservation areas, also referred to as swamps, marshes, or bogs.
Can host diverse forms of vegetation including trees, grasses, and moss.

Flood Plain

Refers to land next to rivers or streams that experiences periodic flooding.
Properties in Special Flood Hazard Areas (SFHA) require flood insurance.

EPA - Regulation of Environmental Hazards

Oversees the safety of commercial and industrial chemicals to protect human health and the environment.
Addresses hazardous waste through the Resource Conservation and Recovery Act (RCRA) established in 1976.

Toxic Substances Control Act (TSCA)

Grants the EPA authority to mandate reporting and testing on chemical substances.
Excludes food, drugs, cosmetics, and pesticides from its requirements.
Regulates specific hazardous substances such as PCBs, asbestos, radon, and lead.

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Known as Superfund, enacted in 1980 to handle hazardous substance releases.
Allows for a multi-faceted approach to site cleanup, identifying Potentially Responsible Parties (PRPs) for liability.
Establishes strict, joint, and retroactive liability for cleanup responsibilities.

Types of Response Actions under CERCLA

Short-term removals address immediate threats or releases.
Long-term remedial actions permanently mitigate dangers at sites on the EPA's National Priorities List (NPL).

Brownfields and their Revitalization

Brownfield sites are properties complicated by potential contamination limiting future use.
More than 450,000 brownfields exist in the U.S. and revitalization can boost local economies and tax bases.
Cleaning up these areas reduces environmental blight and development pressure on undeveloped lands.

Land Revitalization Programs

Focused on reusing previously contaminated properties through various programs like the brownfields program and Superfund redevelopment.
Aims to reintegrate cleaned-up sites into productive use to protect public health and sustain communities.

Disclosure and Handling of Lead Hazards

Lead-based paint is a significant health hazard in homes built before 1978.
Sellers must provide a lead disclosure and a pamphlet for buyers, allowing a 10-day inspection period.
Federal law requires buyers to be informed about any known lead hazards before purchasing.

Environmental Hazards: Radon and Asbestos

Radon is a colorless, odorless gas linked to lung cancer; mitigation costs range from $1,200 to $2,000.
Asbestos, utilized for insulation, poses severe health risks when fibers are airborne; banned for insulation use since 1978.
Encapsulation is the recommended approach for managing asbestos hazards.

Importance of Environmental Impact Statements (EIS)

Required by the National Environmental Policy Act (NEPA) for actions significantly affecting environmental quality.
EIS evaluates the positive and negative impacts of proposed actions and explores alternatives.

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Description

Explore the fundamental powers of government concerning real estate through this quiz. Focus on concepts like police power, eminent domain, taxation, and property assessment methods. Test your understanding of how these powers shape property laws and government revenue.