Real Estate Land Use & Zoning 2 — Questions and Answers
Question 1: The government takes private property for public use and pays just compensation. This is an exercise of:
- Police power
- Escheat
- Eminent domain (Correct answer)
- Adverse possession
Correct answer: Eminent domain
Eminent domain is the government's constitutional right to take private property for public use, provided the owner receives just compensation as required by the Fifth Amendment.
Question 2: A government regulation so severely restricts property use that it effectively takes the property without compensation is called:
- Inverse condemnation (Correct answer)
- Spot zoning
- Downzoning
- Escheat
Correct answer: Inverse condemnation
Inverse condemnation occurs when a government regulation so severely limits property use that it is effectively a taking, entitling the owner to compensation even without formal condemnation proceedings.
Question 3: Floor Area Ratio (FAR) is a zoning tool used to control:
- The minimum lot size for new subdivisions
- The total building floor area relative to the size of the lot (Correct answer)
- The number of parking spaces required per unit
- The maximum height of trees in landscaping
Correct answer: The total building floor area relative to the size of the lot
Floor Area Ratio (FAR) is the ratio of a building's total floor area to the size of the lot it sits on, and is used to regulate building density and bulk.
Question 4: A private restriction placed in a deed that limits how a property can be used is called a:
- Zoning ordinance
- Deed restriction (covenant) (Correct answer)
- Variance
- Easement
Correct answer: Deed restriction (covenant)
A deed restriction (also called a restrictive covenant) is a private limitation written into a deed that runs with the land and binds all future owners.
Question 5: When a municipality changes a property's zoning from higher-density residential to lower-density residential, this is known as:
- Upzoning
- Downzoning (Correct answer)
- Spot zoning
- Rezoning to commercial
Correct answer: Downzoning
Downzoning refers to changing a property's zoning classification to one that permits less intensive use or lower density, which often reduces the property's development potential and value.
Question 6: A conditional use permit (CUP) differs from a variance in that a CUP:
- Permanently changes the zoning classification of a parcel
- Allows a use that is permitted in a zone only under specific conditions (Correct answer)
- Waives a dimensional requirement like a setback
- Is granted automatically without a public hearing
Correct answer: Allows a use that is permitted in a zone only under specific conditions
A conditional use permit allows a use that is listed in the zoning ordinance as acceptable in a zone under certain conditions, whereas a variance waives a specific zoning dimension requirement.
Question 7: Transfer of Development Rights (TDR) programs allow property owners to:
- Sell the right to develop their land to another property owner in a designated receiving area (Correct answer)
- Transfer title to undeveloped land to the local government in exchange for tax credits
- Convert agricultural land to residential use without zoning approval
- Move a nonconforming structure to a conforming location on the same lot
Correct answer: Sell the right to develop their land to another property owner in a designated receiving area
TDR programs allow owners of restricted land (sending areas) to sell their unused development rights to landowners in designated receiving areas, compensating them while directing growth where infrastructure can support it.
The government takes private property for public use and pays just compensation.
This is an exercise of: