Real Estate Development Terms Quiz

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What is a Certificate of Occupancy?

A document that confirms a property has fully complied with all building codes

What is the purpose of Concurrency in planning?

To address foreseen negative impacts during construction itself

What does Eminent Domain allow a government entity to do?

Force the sale of private property for public use

What is a Master Plan in terms of urban planning?

An amalgamated land use plan for a municipality or region

What is the purpose of a Deed Restriction?

To limit how the deeded property may be used or improved

What does a Building Code establish?

Standards for construction of improved properties

What is a Non-conforming use in terms of zoning ordinances?

A land use that is inconsistent with the current zoning ordinance

What is the purpose of a Condemnation decree under eminent domain?

To force the sale of private property for public use

What does a Deed Restriction do to deeded property?

It prohibits specific uses or improvements

What can the grantor do if a condition is violated?

Re-possess the property and sue for legal title

What do Deed Restrictions refer to?

Limitations on the use of a property specified in its deed

What is required to obtain a certificate of occupancy?

Adhering to rigorous construction and material regulations

Which legislation regulates dumping in navigable waters and wetlands?

Clean Water Act

What does a variance refer to in zoning regulations?

A change in zones or rezoning

When is a nonconforming use considered legal?

If it existed prior to the creation of the zone

What are CCRs within a development context?

"Covenants, Conditions, and Restrictions"

What do private land use controls specify?

Limitations on the use of a property stated in its deed

'Special Exception' allows for what in a particular zone?

Specific uses not typically allowed

What is the main purpose of police power in real estate?

To regulate land use in the interest of public health and safety

What is the significance of a 'variance' in land use planning?

It permits land use that conflicts with current zoning under certain conditions

What does the term 'nonconforming use' refer to in zoning appeals?

A land use that existed before the creation of a specific zone

What is the aim of Planned Unit Development (PUD) zoning?

To achieve spatial efficiency and open space in mixed-use developments

In the context of zoning, what is the role of the Zoning Board of Adjustment?

Overseeing rule administration and appeals

Which category of zoning typically includes regulations for manufacturing facilities?

Industrial

What does 'eminent domain' allow government entities to do?

Purchase private property for public use with just compensation

What is the primary goal of land use planning?

Promote the highest and best use of land

'Declaration restriction' attached to a property serves which purpose?

Optimize and preserve property value

What does a 'special exception' authorize in land use planning?

A land use in conflict with zoning authorized based on public interest

What is the purpose of a Master Plan in urban planning?

To serve as a blueprint for subsequent zoning ordinances

In the context of real estate, what does a Certificate of Occupancy signify?

Compliance with building codes and ready for occupancy

What does a Deed Restriction impose on the use of deeded property?

Limits or places rules on property use or improvement

Under eminent domain, when can a government force the sale of private property?

For subsequent public use consistent with master plans

What does Concurrency in planning require developers to do?

Address foreseen negative impacts during construction period

When does a land use qualify as non-conforming under current zoning?

When it is not consistent with the current zoning ordinance

What does Eminent Domain allow a government entity to do regarding private property?

Force the sale for public use while regulating owners' use based on master plans

What does a Condemnation decree under eminent domain signify?

The property is no longer fit for use and must be demolished

What is the purpose of eminent domain in relation to individual property owners?

To regulate how they can use their properties while fitting into municipal master plans

In urban planning, what role does a Deed Restriction play?

Limits or places rules on how deeded property may be used or improved

What is the main purpose of a zoning ordinance?

To establish land use regulations in a municipality

Which category of zoning focuses on regulating manufacturing, distribution, and storage facilities?

Industrial zoning

What is the role of a Zoning Board of Adjustment?

Overseeing rule administration and appeals

What does a Declaration Restriction aim to achieve?

Optimize and preserve the value of the property

What does a variance in land use planning typically involve?

Being authorized despite non-compliance with current zoning

What is the concept of Eminent Domain primarily aimed at achieving?

Acquiring real property for public use and good

How does a Special Exception differ from a Variance in land use planning?

Special Exceptions are always granted based on hardship, while Variances are not.

What does Eminent Domain allow a government entity to do?

Acquire privately owned real property for public use in exchange for just compensation.

What is one of the aims of Land Use Planning mentioned in the text?

Safeguard public health, safety, and welfare.

What do Deed Restrictions impose on a property owner?

Requirements for minimum residential area

What is the main purpose of the Zoning Board of Adjustment?

To supervise appeals of zoning regulations

What is the significance of a variance in land use planning?

It allows for exceptions based on public interest

Which legislation primarily regulates lead-based paint in residences?

Residential Lead-based Paint Hazard Reduction Act

In real estate, what makes a nonconforming use legal?

Pre-existence prior to zone creation

What is the primary role of CCRs (Covenants, Conditions, and Restrictions) within a development context?

To determine rules and regulations for development

What is the key focus of Environmental Laws like the Clean Water Act?

Protection of wetlands and navigable waters

What is the main purpose of a Special Exception in land use planning?

To allow specific uses not typically allowed in a zone

What does the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) mainly regulate?

Hazardous waste disposal

When can a nonconforming use be considered legal in terms of zoning ordinances?

If it existed before the zone was created

Study Notes

Land Use Regulation

  • Land use regulation aims to preserve property values, promote highest and best use, safeguard public health, safety, and welfare, control growth, and incorporate community consensus.
  • The process involves developing a plan, creating administration, and authorizing controls.
  • Master plans are long-term growth and usage strategies, often required by state law, and fuse municipal goals and needs with state and regional laws.

Zoning

  • Zoning is the "police power" bestowed by state-level enabling acts and establishes zones, imposes usage restrictions, regulations, and requirements.
  • Categories of zoning include:
    • Residential: regulates density or number of dwellings in a specific area.
    • Commercial: governs intensity or how much commercial activity is allowed in relation to the size of the site.
    • Industrial: zoning for manufacturing, distribution, and storage facilities.
    • Agricultural: zoning for farming and related activities.
    • Public: zoning for public facilities such as schools, parks, and government buildings.
    • PUD (Planned Unit Development): zoning for mixed-use developments.

Zoning Administration

  • Zoning Board of Adjustment oversees rule administration and appeals.
  • Zoning appeals include:
    • Nonconforming use: legal if existed before zone creation; illegal otherwise.
    • Variance: exception granted based on hardship.
    • Special exception: granted based on public interest.
    • Amendment: change of zones; rezoning.

Eminent Domain

  • Definition: allows government entities to purchase a fee or easement interest in privately owned real property for public use and good in exchange for "just compensation."

Subdivision Regulations

  • Plat of subdivision and all relevant requirements must be met and approved, including meeting FHA requirements for insured financing.
  • Considerations include:
    • Location
    • Grading
    • Alignment
    • Surfacing
    • Street width and highways
    • Sewers and water mains
    • Lot and block dimensions
    • Building and setback lines
    • Public use dedications
    • Utility easements
    • Ground percolation

Deed Restrictions and HOA Regulations

  • Declaration restriction is attached to the property and cannot be extinguished by agreement or quit claim deed.
  • Purpose is to optimize and preserve the value of the property.
  • Can be enforced through an injunction.
  • Deed condition is similar in nature to a deed restriction.

Environmental Regulations

  • Flood prevention; proper disposal of solid waste; air, water, and marine quality control; noise reduction measures; toxic substance management; lead paint restrictions; compliance with CERCLA and Superfund guidelines.

History of Environmental Laws

  • Solid Waste Disposal Act (1965, 1976, 1999, 2002)
  • Air Quality Act, Clean Air Act (1967, 1970)
  • National Environmental Policy Act (NEPA) (1969, 1970)
  • Flood Control Act (1969)
  • Resource Recovery Act (1970)
  • Water Quality Improvement Act (1970)
  • Water Pollution Control Act amendment (1972)
  • Clean Water Act (1972, 1977)
  • Lead-based paint ban (1978)
  • PCB ban (1979)
  • RCRA amendment (1984)
  • Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) (1980)
  • Superfund Amendment and Reauthorization Act (1986)
  • Asbestos ban (1989)
  • Residential Lead-based Paint Hazard Reduction Act (1992, 1996)
  • Flood Insurance Reform Act (1994)
  • Brownfields legislation (2002)

Test your knowledge of terms related to real estate development, such as building codes, certificate of occupancy, concurrency, and condemnation.

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