Question 1

A __________ gives a person the right to negotiate the purchase of the property before the seller enters negotiations with another party.

Accepted Answer

A)  letter of agreement 
B)  letter of intent 
C)  right of first refusal 
D)  right of first negotiation 
A)  letter of agreement 
B)  letter of intent 
C)  right of first refusal 
D)  right of first negotiation

Question 2

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.

Accepted Answer

A) True 
 B)False

Question 3

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 18-1
Prudence wants to develop a shopping center in her town. She is very interested in developing the center at the location of an old dump. She can purchase the property cheaply, and it is near one of the fastest growing areas of the city. She is concerned, however, about being held liable for all cleanup costs. She has heard about federal and state funds that may be available; but she is concerned that if she purchases the property knowing that contamination is likely there, she will not be eligible to participate in government assistance programs for cleanup. She decides to discuss her problem with Bruce, a law student studying environmental law.
-Refer to Fact Pattern 18-1.Which of the following is a term used for the dump in which Prudence is interested?

Accepted Answer

A)  Black area 
B)  Brownfield 
C)  Red zone 
D)  Danger zone 
A)  Black area 
B)  Brownfield 
C)  Red zone 
D)  Danger zone

Question 5

A ground lease is a very long-term lease.

Accepted Answer

A) True 
 B)False

Question 6

A(n)__________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

Accepted Answer

A)  substitution agreement 
B)  interim agreement 
C)  development commitment 
D)  take-out commitment 
A)  substitution agreement 
B)  interim agreement 
C)  development commitment 
D)  take-out commitment

Question 7

Blaire and Jimmy have been married for many years and own a home through tenancy by the entirety.Blaire has grown children from a previous marriage,Andy and Candy; and her will provides that her interest in the home should go to them upon her death.Blaire dies at age 90,and a few weeks later Jimmy finds a new girlfriend and moves her into the home.Andy and Candy object and tell Jimmy to get out because they have an ownership interest in the home,and they believe that Jimmy is being disrespectful to their mother.Which of the following is true regarding the ownership claim of Andy and Candy?

Accepted Answer

A)  Blaire's children are correct; and each of them, along with Jimmy, have a 1/3 ownership interest in the home. 
B)  Blaire's children are correct, and they each have a 25% interest in the home with Jimmy owning the other 50% interest. 
C)  Blaire's children are correct, and they each have a 10% interest in the home with Jimmy owning the other 80%. 
D)  Blaire's children are incorrect, and Jimmy solely owns the home. 
A)  Blaire's children are correct; and each of them, along with Jimmy, have a 1/3 ownership interest in the home. 
B)  Blaire's children are correct, and they each have a 25% interest in the home with Jimmy owning the other 50% interest. 
C)  Blaire's children are correct, and they each have a 10% interest in the home with Jimmy owning the other 80%. 
D)  Blaire's children are incorrect, and Jimmy solely owns the home.

Question 8

A trust is a form of co-ownership of property.

Accepted Answer

A) True 
 B)False

Question 9

In the Stevens v.Premier Cruises,Inc.(2000)case referenced in the text,the plaintiff-who was confined to his wheelchair-sued Premier Cruises under the __________ Act,claiming that the portions of the ship that were considered "__________" were not in-fact wheelchair accessible.

Accepted Answer

A)  Title III of the Civil Rights, public accommodations 
B)  Americans With Disability, public accommodations 
C)  Department of Justice Disability, public accommodations 
D)  Americans With Disability, private accommodations 
A)  Title III of the Civil Rights, public accommodations 
B)  Americans With Disability, public accommodations 
C)  Department of Justice Disability, public accommodations 
D)  Americans With Disability, private accommodations

Question 10

__________ is the division of a city into districts and the application of specific land-use regulations in each district.

Accepted Answer

A)  Zoning 
B)  Nonconforming use 
C)  Subdivision process 
D)  Constitutional taking 
A)  Zoning 
B)  Nonconforming use 
C)  Subdivision process 
D)  Constitutional taking

Question 11

John owns a 20-acre parcel of land in Smallville.Bob is a developer that wants to build a subdivision in Smallville.He offers John $1,000 for a 30-day option to purchase the land for $1 million.John agrees.Clara is John's sister and has a valid right of first refusal on the same land.Bob has been told by his bank that the bank will provide a construction loan for the development.What rights did Bob legally obtain when he purchased his option? What effect will Clara's rights have on Bob's option? Explain the three types of loans⎯construction,gap,and take-financing⎯that could be involved to complete the development.Discuss fully.

Accepted Answer

Bob has the right to purchase the land f

Question 12

As part of any legislative proposal or other major governmental action that will significantly affect the quality of the environment,the government must generally include an environmental assessment (EA).

Accepted Answer

A) True 
 B)False

Question 13

What must a person do to acquire a parcel of land by adverse possession?

Accepted Answer

To acquire a parcel of land by adverse p

Question 14

Until a developer obtains a(n)__________ right,meaning a fully guaranteed right,to develop a property,the regulation governing that property may be changed.

Accepted Answer

A)  vested 
B)  acknowledged 
C)  known 
D)  discretionary 
A)  vested 
B)  acknowledged 
C)  known 
D)  discretionary

Question 15

A(n)__________ gives the mortgagor the right,after a foreclosure,to reacquire property within a statutory limited period.

Accepted Answer

A)  interim statute 
B)  right of redemption 
C)  mortgagee relief statute 
D)  right of relief 
A)  interim statute 
B)  right of redemption 
C)  mortgagee relief statute 
D)  right of relief

Question 16

Susie has a great farm bordering on a river and plans to build a house on a cliff overlooking the water.She was also considering building a couple of guest cottages to rent to vacationers.One day a land conservatory came to Susie and asked her to designate the land as a pristine area whereby no development or building could take place.Susie told them to get lost.The next thing she knew,the jurisdiction in which she lived had passed a regulation permanently prohibiting riverfront owners in her area from building any structures within one half mile of the river.There had been no such restriction in her state or county previously,and Susie suspects that the regulation is part of a plot to force landowners to agree to the request of the land conservatory.Susie tells her builder to go ahead with plans to construct the home because the government cannot take land through excessive regulation.Is Susie correct that the government cannot take land through excessive regulation?

Accepted Answer

A)  Susie is incorrect although if the government action constitutes a taking, compensation to the landowner must be provided. 
B)  Susie is incorrect, and no compensation to the landowner is required. 
C)  Susie is incorrect although she would only be entitled to compensation for any lost profits she can establish. 
D)  Susie is correct, and the regulation would be overturned by a federal court. 
A)  Susie is incorrect although if the government action constitutes a taking, compensation to the landowner must be provided. 
B)  Susie is incorrect, and no compensation to the landowner is required. 
C)  Susie is incorrect although she would only be entitled to compensation for any lost profits she can establish. 
D)  Susie is correct, and the regulation would be overturned by a federal court.

Question 17

The person that conveys real property by deed is called the grantee.

Accepted Answer

A) True 
 B)False

Question 18

Lawrence owns several apartments in a large city.The city just enacted a rent control ordinance limiting the amount of rent that can be charged with apartments.Lawrence heard that Susan,a friend of his,just graduated from law school and passed the bar.Lawrence asks Susan if there is any way he can avoid the rent control measures.What should Susan tell him?

Accepted Answer

Susan should tell Lawrence that ordinary

Question 19

In community property states,property acquired by inheritance during the marriage is:

Accepted Answer

A)  community property. 
B)  separate property. 
C)  a tenancy by the entirety. 
D)  a tenancy in common. 
A)  community property. 
B)  separate property. 
C)  a tenancy by the entirety. 
D)  a tenancy in common.

Question 20

The rate at which major financial institutions offer to lend to their most creditworthy customers is called the prime rate.

Accepted Answer

A) True 
 B)False

A __________ gives a person the right to negotiate the purchase of the property before the seller enters negotiations with another party.

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

A ground lease is a very long-term lease.

A(n)__________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

A trust is a form of co-ownership of property.

In the Stevens v.Premier Cruises,Inc.(2000)case referenced in the text,the plaintiff-who was confined to his wheelchair-sued Premier Cruises under the Act,claiming that the portions of the ship that were considered "" were not in-fact wheelchair accessible.

__________ is the division of a city into districts and the application of specific land-use regulations in each district.

As part of any legislative proposal or other major governmental action that will significantly affect the quality of the environment,the government must generally include an environmental assessment (EA).

What must a person do to acquire a parcel of land by adverse possession?

Until a developer obtains a(n)__________ right,meaning a fully guaranteed right,to develop a property,the regulation governing that property may be changed.

A(n)__________ gives the mortgagor the right,after a foreclosure,to reacquire property within a statutory limited period.

The person that conveys real property by deed is called the grantee.

In community property states,property acquired by inheritance during the marriage is:

The rate at which major financial institutions offer to lend to their most creditworthy customers is called the prime rate.

Law, Value Creation, and Risk Management.

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Agency.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Consumer Protection.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

Filters

Exam 18: Real Property and Land Use.

A __________ gives a person the right to negotiate the purchase of the property before the seller enters negotiations with another party.

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

A ground lease is a very long-term lease.

A(n)__________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

A trust is a form of co-ownership of property.

In the Stevens v.Premier Cruises,Inc.(2000)case referenced in the text,the plaintiff-who was confined to his wheelchair-sued Premier Cruises under the __________ Act,claiming that the portions of the ship that were considered "__________" were not in-fact wheelchair accessible.

__________ is the division of a city into districts and the application of specific land-use regulations in each district.

As part of any legislative proposal or other major governmental action that will significantly affect the quality of the environment,the government must generally include an environmental assessment (EA).

What must a person do to acquire a parcel of land by adverse possession?

Until a developer obtains a(n)__________ right,meaning a fully guaranteed right,to develop a property,the regulation governing that property may be changed.

A(n)__________ gives the mortgagor the right,after a foreclosure,to reacquire property within a statutory limited period.

The person that conveys real property by deed is called the grantee.

In community property states,property acquired by inheritance during the marriage is:

The rate at which major financial institutions offer to lend to their most creditworthy customers is called the prime rate.

Law, Value Creation, and Risk Management.

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Agency.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Consumer Protection.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

Filters

In the Stevens v.Premier Cruises,Inc.(2000)case referenced in the text,the plaintiff-who was confined to his wheelchair-sued Premier Cruises under the Act,claiming that the portions of the ship that were considered "" were not in-fact wheelchair accessible.