Zoning and Property Management Basics

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Questions and Answers

What is the primary purpose of zoning regulations?

To control pricing of real estate transactions

To unify land use across all states

To enhance federal land use policies

To regulate private land use and development (correct)

Which of the following is NOT a type of land use typically governed by zoning?

Government (correct)

Residential

Commercial

Industrial

What does a setback refer to in zoning terms?

The density of housing units permitted per acre

The distance from a designated reference point to the structure (correct)

The maximum height limit for buildings in an area

The ratio of the building's floor area to the land area

What is a floor area ratio in zoning?

The ratio of square footage to land area Signup and view all the answers

Which of the following best describes a 'buffer zone'?

A space between two different use districts Signup and view all the answers

Which statement about down-zoning is true?

It allows for less intensive developments than allowed previously Signup and view all the answers

What component of zoning ordinances deals with the number of houses built per acre?

Density Signup and view all the answers

What does zoning as a police power refer to?

Laws created to maintain public health and safety Signup and view all the answers

What happens to the responsibilities of a lease if one of the parties dies?

They may pass on to the heirs of the deceased. Signup and view all the answers

What distinguishes an assignment from a sublet in a lease agreement?

An assignment transfers rights; a sublet does not. Signup and view all the answers

Which situation would likely be considered constructive eviction?

A landlord provides insufficient heat during winter. Signup and view all the answers

What is the primary goal of a property manager?

To generate the highest net income while maintaining property value. Signup and view all the answers

What is typically required for property management agreements?

They are usually required to be in writing. Signup and view all the answers

In property management, who is responsible for maintaining good relationships with tenants?

The property manager. Signup and view all the answers

Which of the following is NOT a duty of a property manager?

Fixing plumbing issues personally. Signup and view all the answers

When is rent due if the lease does not specify a date?

The last day of the leasing period. Signup and view all the answers

What does the term 'chattels' refer to in property law?

Movable property Signup and view all the answers

What does 'severance' imply in real property law?

The process of detaching property from land Signup and view all the answers

Which of the following best describes a 'fixture'?

Personal property that becomes real property Signup and view all the answers

What does the acronym MARIA stand for in determining fixtures?

Method, Agreement, Relationship, Intention, Adaptability Signup and view all the answers

Which of the following is NOT a criterion used to determine if an item is a fixture?

Market value Signup and view all the answers

Under what condition can a sink be considered a fixture?

When it is permanently attached to the plumbing outlet Signup and view all the answers

What is meant by 'annexation' in property law?

Attaching a personal property item to real property Signup and view all the answers

Which example best illustrates the concept of real property?

A chandelier hung from the ceiling Signup and view all the answers

What happens to a fee simple determinable estate when the specified event occurs?

The estate automatically reverts to the grantor. Signup and view all the answers

Which of the following accurately describes a life tenant's responsibilities?

A life tenant must maintain the property and pay taxes. Signup and view all the answers

What is a key feature of a less than freehold estate?

It is held for a limited period of time. Signup and view all the answers

What is true regarding commitments made by a life tenant?

A life tenant cannot commit waste to the property. Signup and view all the answers

What occurs upon the death of a life tenant, assuming a life estate is granted?

The property returns to the original owner if specified. Signup and view all the answers

Which of the following constitutes a fee simple subject to a condition subsequent?

The estate remains unless a specific condition is violated. Signup and view all the answers

In what scenario would an 'estate for years' be relevant?

When a leasehold interest is established for a fixed duration. Signup and view all the answers

Which statement about leasehold estates is true?

Leasehold estates can be bought and sold on the open market. Signup and view all the answers

What is the role of a principal in a contract?

Any individual involved in a contractual agreement Signup and view all the answers

What establishes a fiduciary relationship between an agency and a client?

Signing an agreement with the agency Signup and view all the answers

Which statement correctly describes a customer in real estate terms?

A party that uses services without signing any agreement Signup and view all the answers

When a listing agent represents a seller, what is their responsibility to the buyer?

To ensure the buyer understands the seller is the client Signup and view all the answers

What happens when a real estate broker enters into a contract with a buyer?

The seller becomes the agent's client while the buyer is a customer Signup and view all the answers

What does the term 'attorney in fact' refer to?

An individual empowered to sign documents for another person Signup and view all the answers

What is the proper way for an attorney in fact to sign a document?

Including their own name followed by the principal's name Signup and view all the answers

Which of the following is NOT a duty of a real estate licensee towards a customer?

To negotiate contracts on behalf of the customer Signup and view all the answers

What is a characteristic of puffing in real estate?

It involves exaggeration to promote a sale. Signup and view all the answers

What can lead to an agent being liable for damages incurred by a buyer?

Selling a stigmatized property without disclosure. Signup and view all the answers

Why are most real estate contracts required to be in writing?

To comply with the statute of frauds. Signup and view all the answers

What is meant by 'stigmatized property'?

A property undesirable for non-physical reasons. Signup and view all the answers

What is a common guideline for real estate agents regarding listing agreements?

They must be written to ensure compensation for services. Signup and view all the answers

What constitutes a valid contract in real estate?

A written agreement stating the terms clearly. Signup and view all the answers

What must an agent consider regarding timeframes in contracts?

Every contract must contain a time for performance. Signup and view all the answers

What can happen if an owner does not disclose a stigmatized property?

The owner may also face liability for damages. Signup and view all the answers

Study Notes

Real Estate Exam Key Concepts

Introduction: The provided material focuses on key concepts for passing a real estate exam. It covers topics from introductions and disclaimers to government powers, contracts, and listings.
Disclaimer: Students should consult state licensing authorities and pre-licensing courses for any conflicting information. The information in the book is not legal advice and a consultation with an attorney is recommended in legal matters.
What is a License?: A license is a personal privilege granted to use land, typically revocable and not transferring with title. Examples include parking permits, movie tickets, or permission to fish.
The -OR and -EE Rule: '-OR' refers to the person performing the action, while '-EE' refers to the recipient. For example, grantor/grantee, lessor/lessee, optionor/optionee, and vendor/vendee.
Property Ownership Basics: Property ownership involves a bundle of rights, such as the right to use, transfer, lease, and mortgage the property.
Fixtures: Items considered personal property originally, but attached to real property; now treated as real property. This is determined by MARIA (Method, Adaptability, Relationship, Intention, Agreement).
Trade Fixtures: Equipment attached to real property that's used in a trade or business; these are typically considered personal property at lease termination.
Encroachment: A structure or improvement on one property that intrudes onto another's property. Encroachments are a form of unlawful trespass.
Emblements: Annual crops considered the tenant's personal property, even after lease ends.
Water Rights: Rights concerning use and enjoyment of water sources. These vary (Riparian, Littoral, Correlative).
Estates: Rights of ownership or possession lasting for a set duration (Freehold & Less Than Freehold). Freehold estates are ownership lasting for an undefined period; less than freehold are time specific. Examples: Fee Simple Absolute, Fee Simple Defeasible, Life Estate, Estate for Years, Periodic Tenancy, Estate at Will, & Estate at Sufferance.
Leases: Different types of leases (Gross, Percentage, Net), lease options, and the legal ramifications.
Easements: The right for one entity to use the land of another. Examples: Express Easements (created by express grant or reservation), Easement by Necessity, Easement in Gross, and Implied Easement.
Government Powers: The four main powers of the government relating to land: Police Power, Eminent Domain, Taxation, and Escheat.
Agency: Basics of relationships in real estate (principal, agent, and third parties). This includes the distinction between universal, general, and special agents and important duties to clients. Dual agency relationships and ethical considerations.
Communication: Types of fraud in the context of real estate (Actual fraud, Negative fraud, Constructive fraud) and negligence in professional conveyance.
Contracts: Essentials for valid contracts (capable parties, lawful object, consideration, offer, and acceptance). The different types of contracts (land contracts, sale contracts, lease/lease options, unilateral/bilateral), and terms involving them (contingency clauses, assignments, executed contracts, and executory contracts).
Listings: Types of listing agreements (Exclusive Listing, Exclusive Authorization and Right to Sell Listing, and Exclusive Agency Listing).
Valuation & Market Analysis: Discusses the concept of depreciation and its types (economic/functional obsolescence).
Appraisal Methods: Discusses approaches to determining value (Cost, income, and market data).
Financing: "Assume" vs "Subject to" mortgages and their ramifications.
Investing: Advantages and disadvantages of investing in real estate. This includes terms for syndication, leverage, pyramiding, arbitrage, equity, and risk.
Fair Housing & Other Laws: Discusses laws preventing housing discrimination and illegal acts such as blockbusting and steering, and important relevant legislation.
Practice: The importance of thorough knowledge to pass the exam.

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Description

Test your knowledge on zoning regulations and property management concepts with this quiz. Explore essential terms, duties of property managers, and various land use categories. Perfect for students and professionals in real estate.