Exam 4: Government Controls and Real Estate Markets

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:

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 control)

All of the following statements are true in describing the determination of just compensation EXCEPT:

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 as the construction of a park.This is more commonly referred to as a:

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:

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 externality?

Tax rates are usually stated in mills.Assuming the tax rate in percentage terms is 6.5%,convert this rate to mills.

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 markets?

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 Rate: 13.70 mills.

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.

When land use controls impose exceptional hardship and loss of value,a relief mechanism must be provided.This relief is referred to as a:

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:

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.For example,there is no substitute for certain pieces of land which gives the owner a bargaining advantage in determining the value of the land.This feature of real estate markets is commonly referred to as:

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 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?

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 space,air,water,and other resources.Environmentalists coined which of the following terms to refer to this new point of View?