Test Bank Answer Key
Chapter 4 Public Regulation and Private Encumbrances
TRUE/FALSE
1. Generally speaking, the power of government to issue zoning regulations is constitutional.
2. Zoning is considered constitutional as long as the zoning regulation bears some reasonable
relationship to the public welfare.
3. Zoning is a judicial process and usually involves court proceedings.
4. Zoning does not require procedural due process.
5. Zoning is considered a legislative function of a governmental authority.
6. Zoning is generally enforced through injunction.
7. An owner may be responsible for hazardous waste cleanup, even if the owner was not the
creator of the hazardous waste.
8. State governments have the right to take private property for public use.
9. Local governments do not have the right to take private property for public use.
10. The exercise of the power of eminent domain requires procedural due process.
11. An owner’s property may be sold to governmental authorities for failure to pay real
estate taxes.
12. Public real property is not subject to mechanics’ and materialmen’s liens.
13. Mechanics’ and materialmen’s liens can never be waived.
14. Private restrictions on the use of real property are never enforceable.
15. Generally, private restrictions on the use of real property are enforceable.
16. Subcontractors are generally not entitled to a mechanics’ lien.
17. The right to use real property for a special purpose such as a roadway is known as an easement.
18. The right to use real property for a special purpose such as a roadway is known as a
restrictive covenant.
19. A trust deed is a public encumbrance.
20. Building codes are generally thought of as private.
21. The protection of wetlands is an important environmental concern.
22. A purchaser who has actual knowledge of contamination at the time of purchasing the property
may still be an innocent party under CERCLA.
23. A Phase I environmental examination involves drilling wells and analyzing water samples.
24. A Phase II environmental examination generally involves drilling wells and analyzing water
and soil samples.
25. The disclosure of lead-based paint is regulated by the federal government.
26. It is not necessary to disclose that a home built prior to 1978 may have lead-based paint.
27. A property owner has the right to challenge an assessment of his or her property for purposes of
taxation.
28. A property owner does not have the right to challenge an assessment of his or her property for
purposes of taxation.
MULTIPLE CHOICE
1. Which of the following are generally thought not to be public encumbrances?
A. Building codes
B. Environmental protection laws
C. Judgment liens
D. Zoning
2. A use of real property that is changed or prohibited by subsequent zoning regulations is known
as a(n)
A. easement.
B. nonconforming use.
C. injunction.
D. ad valorem.
3. Which of the following is not a public use that supports the exercise of the power of
eminent domain?
A. Public street
B. Park
C. Airport
D. Forest reserve
E. None of the above
F. All of the above
4. Which of the following would not be considered a private encumbrance?
A. Materialmen’s lien
B. Ad valorem tax
C. Trust deed
D. Restrictive covenant
5. Which of the following people are generally entitled to file a mechanics’ or materialmen’s lien?
A. Subcontractors
B. Laborers
C. Material suppliers
D. Land surveyors
E. All of the above
6. If you were in a state that followed the New York theory of lien claims and an owner had a contract
to build a home for $100,000 and had already paid the general contractor $60,000, the owner’s
responsibility to subcontractors and material suppliers on lien claims would be limited to
A. $40,000.
B. $60,000.
C. $100,000.
D. none of the above.
7. If you were in a state that applied the Pennsylvania theory of lien claims and an owner had a
contract to build a home for $100,000 and had already paid the general contractor $60,000, the
owner’s liability to subcontractors and materialmen would be limited to
A. $40,000.
B. $100,000.
C. the full amount of their claims.
D. $60,000.
E. none of the above.
8. Which of the following are not responsible for cleanup costs of hazardous waste?
A. Innocent purchasers
B. Former owners before the contamination
C. Lenders who foreclose and become owners
D. All of the above
E. None of the above
9. The amount of real estate taxes is generally based upon
A. the value of the property.
B. the original purchase price of the property.
C. the use of the property.
D. the depreciated value of the property.
10. Which of the following is not considered a legislative function of government?
A. Zoning
B. Eminent domain
C. Taxation
D. Building codes
SHORT ANSWER
1. John owns land at the edge of a small town. When he purchased the land it was not zoned and
he operated an auto repair business there. Several years later, the town annexed John’s land as
well as the surrounding land. The town then zoned all of the annexed land single-family
residential. John’ s business is the only business within the residential area. What right does
John have to continue his auto repair business? Are there any restrictions on this right?
2. Karen’s property is being taken by the city to be used as the site for a new school. What rights
does Karen have in connection with this taking? Can Karen stop the city from taking her
property?
3. Superior Woodwork built a deck for a homeowner. The homeowner refused to pay for the deck.
Superior wants to file a claim of lien for the unpaid bill against the homeowner’s property.
What information would generally be contained in the claim of lien?