C. externalities
1. While most real property in the United States is privately owned, government regulations limit private property use and therefore play an important role in the determination of property value. Proponents of government intervention argue that regulation
C. Public assistance facilities such as homeless shelters.
2. Externalities can play an important role in determining a property's price, either by adding value through positive externalities or by diminishing value through negative externalities. Which of the following is most likely to be considered a negative
A. urban sprawl
3. Development taking place in rural areas well beyond the urban fringe is commonly referred to as:
A. urban sprawl
B. holdout
C. urban service areas
D. homestead
C. Spaceship earth
4. It was not until the late 1960's that land use controls moved to the forefront of public interest, as the belief that the environment was an endless and costless resource was replaced with the notion that the world was a closed system with limited spac
B. Incomplete information
5. After a structure is built, it is impractical for even a building expert to fully assess the quality of the construction and the safety hazards it may harbor. This is an example of which of the following problems that plagues private real estate market
B. concurrency requirement
6. Growth management laws at the state level require local jurisdictions to plan for and meet certain requirements. One such requirement prohibits local development unless adequate infrastructure, schools, police/fire protection, and social services have
D. new urbanism
7. A contemporary planning movement that explicitly advocates a traditional grid pattern of development designed to give pedestrian life priority over motor vehicles (e.g., including narrowed streets with houses close to the street and garage access throu
C. Building Codes
8. Which of the following tools of public land use control represents the earliest method of police power to regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in the application of this land use contro
B. nonconforming uses
9. When a zoning ordinance is revised, some existing land uses then fall outside the new zoning classification. These land uses are referred to as:
A. special uses
B. nonconforming uses
C. conforming uses
D. exclusionary uses
D. variance
10. When land use controls impose exceptional hardship and loss of value, a relief mechanism must be provided. This relief is referred to as a:
A. building code
B. zoning ordinance
C. comprehensive plan
D. variance
B. The condition is common to other parcels of land in the vicinity
11. In order for the board of adjustment to approve a variance, all of the following conditions must be met EXCEPT:
A. The owner must be unable to use the lot as zoned.
B. The condition is common to other parcels of land in the vicinity
C. The variance mu
D. Performance standards
12. A traditional zoning ordinance includes all of the following EXCEPT:
A. Minimum setback requirements
B. Minimum lot dimensions
C. Provisions for special use districts
D. Performance standards
D. Comprehensive Environmental Response Compensation and Liability Act
13. State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards. Which of the following federal environmental control laws was responsible for establishing the "Superfu
B. impact fees
14. Negative externalities can diminish a property's value by imposing costs on the community at large. In order to offset this detrimental impact, economists advocate "internalizing" these externalities by implementing:
A. performance standards
B. impact
A. Asbestos
15. A major problem in buildings constructed prior to the early 1970's, which of the following environmental hazards commonly associated with insulation has been the focus of costly
cleanups at many public buildings, especially schools?
A. Asbestos
B. Rad
C. eminent domain
16. The right of government to acquire private property, without the owner's consent, for public use in exchange for just compensation is referred to as:
A. inverse condemnation
B. regulatory taking
C. eminent domain
D. dedication
B. The value of the property is determined solely by its current use.
17. All of the following statements are true in describing the determination of just compensation EXCEPT:
A. The value of the property is based on its highest and best use at the time.
B. The value of the property is determined solely by its current use.
B. ad valorem taxes
18. Real estate taxes represent the largest single source of revenue for a large portion of local governments. Most property taxes are applied in relation to the value of the property, or in other words, they are:
A. effective tax rates
B. ad valorem taxe
A. extraterritorial jurisdiction.
19. A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly developing. However, the city claims to have the right to control urban development even in the proposed area. The right the city is attempting to inv
A. They are considered ad valorem taxes.
20. Special assessments are levied to pay for specific improvements that benefit a particular group of properties. All of the following characteristics of special assessments are true EXCEPT:
A. They are considered ad valorem taxes.
B. They are applied as
A. regressive
21. One of the main criticisms of property taxes is that the property tax of lower income households is higher than that of higher income households, as a percentage of their respective incomes. In other words, taxes are criticized for being:
A. regressiv
D. homestead exemption
22. In the state of Florida, for example, homeowners may qualify for a tax exemption in which up to $50,000 will be deducted from the assessed value of the property before taxes are calculated as long as the property owner occupies a home as the family's
D. exclusionary uses
23. Zoning ordinances that tend to exclude lower income groups by large lot size, or that do not adequately provide low- and moderate-income housing are referred to as:
A. special uses
B. nonconforming uses
C. conforming uses
D. exclusionary uses
C. traditional residential planning
24. A public planning movement that explicitly advocates a cul-de-sac hierarchy of development, an automobile oriented society, and separated land use is more commonly referred to as:
A. urban sprawl
B. urban service area
C. traditional residential planni
D. Condemnation
25. Eminent domain is the right of government to acquire private land, without the owner's consent, for public use, with due process and just compensation. The legal procedure for exercising the right of eminent domain is referred to as:
A. Growth restric
A. Planned unit development
26. Traditional zoning regulations are criticized for often being too rigid in forcing uniform types of development. One proposed solution to this issue allows traditional zoning requirements to vary in exchange for an enhancement to the community, such a
D. Able to use eminent domain to acquire property for private development if is serves public purpose even if the current land use is not blighted.
27. In the history of eminent domain, the Kelo v. New London, Connecticut decision of the U.S. Supreme Court in 2005 affirmed the possibility of a community being:
A. Prohibited from using eminent domain.
B. Restricted to use of eminent domain only for ac
B. locational monopoly
28. In efficient financial markets, unregulated competitive bidding should bring about the most productive use of an asset and the price paid for that asset should reflect fair value based on its usefulness. In real estate, this is not always the case. Fo
C. a discount from the face value of the property taxes due
29. Nearly half of states in the U.S. use the sale of tax lien certificates to manage defaulted property taxes. The certificates are auctioned to the public at:
A. the face value of the property taxes due
B. the assessed value of the home
C. a discount fr
B. 4.0%
30. Given the following information, compute the property tax rate for the community in percentage terms. Total budget expenditures: $108 million, Total non-property tax income: $50 million, Total assessed value of all properties: $2 billion, Total exempt
C. 65 mills
31. Tax rates are usually stated in mills. Assuming the tax rate in percentage terms is 6.5%, convert this rate to mills.
A. 0.065 mills
B. 6.5 mills
C. 65 mills
D. 650 mills
C. 1.65%
32. Given the following information, compute the effective tax rate for the particular piece of property in percentage terms. Market value of property: $325,000, Assessed value of property: $250,000, Exemptions: $50,000, Taxes paid: $5,363.
A. 1.50%
B. 2.
B. $375,000
33. Given the following information, compute the taxable value for the particular piece of property in dollar terms. Market value of property: $500,000, Assessed value of property: 85 % of the market value of the property, Exemptions: $50,000, Taxes paid:
A. $4,685.10
34. Given the following information, calculate the total annual tax liability of the homeowner. Market value of property: $350,000, Assessed value of property: 40 % of the market value, Exemptions: $2,000, Millage Rate: 33.95 mills.
A. $4,685.10
B. $4,753
C. 16.73 mills
35. Given the following information, calculate the effective tax rate expressed in mills. Market value of property: $280,000, Assessed value of property: 50 % of the market value, Exemptions: $2,000, Annual tax liability: $4,685.10.
A. 1.69 mills
B. 3.35
C. $1,925.10
36. Given the following information, calculate the total annual tax liability of the homeowner. Market value of property: $350,000, Assessed value of property: 40 % of the market value, Exemptions: $2,000, State Millage Rate: 0.25 mills, County Millage Ra