Real Estate Salesperson Licensing Exam Land Use Controls, Regulations, and Environmental Issues Syllabus

What are CC&Rs?

Covenants, Conditions, and Restrictions: a recorded set of private rules and restrictions, typically created by a developer, that govern use, appearance, and obligations of property within a subdivision or common-interest community.

What does it mean that a covenant 'runs with the land'?

The covenant is attached to the land itself and binds all current and future owners, not just the original parties to the agreement.

How are restrictive covenants typically enforced, and by whom?

By private parties such as the HOA or neighboring owners, usually through a court injunction (and sometimes damages). Unlike zoning, the government does not enforce private covenants.

When private deed restrictions and public zoning conflict, which controls?

The more restrictive of the two controls. The owner must comply with whichever rule is stricter; zoning does not override a stricter private covenant, and a covenant cannot permit what zoning forbids.

Are racially based restrictive covenants enforceable?

No. Covenants restricting ownership or occupancy based on race, religion, or national origin are illegal and unenforceable under the Fair Housing Act and Supreme Court rulings (Shelley v. Kraemer).

What is a homeowners association (HOA)?

An organization in a planned community or condominium that manages common areas, enforces CC&Rs, and collects assessments from owners, who are automatically members upon purchase.

What are HOA assessments (dues)?

Mandatory fees paid by owners to fund maintenance of common areas, services, insurance, and reserves. Unpaid assessments can result in a lien on the owner's property and potentially foreclosure.

What is an architectural review committee (ARC) in an HOA?

A body that reviews and approves proposed exterior changes (additions, paint colors, fences, landscaping) to ensure they comply with the community's CC&Rs and maintain a consistent appearance.

What is eminent domain?

The constitutional power of government (and certain authorized entities) to take private property for public use, provided the owner is paid just compensation.

What is condemnation in the context of eminent domain?

The legal process/action by which the government exercises eminent domain to actually take title to private property and determine the just compensation owed.

What are the two key constitutional requirements for a valid eminent domain taking?

The taking must be for a public use, and the owner must receive just compensation (fair market value), under the Fifth Amendment (applied to states via the Fourteenth).

What is 'just compensation' in an eminent domain taking?

Payment to the owner equal to the fair market value of the property taken (and damages to remaining property in a partial taking), so the owner is made financially whole.

What is inverse condemnation?

A legal action brought by a property owner against the government to obtain compensation when government action has effectively taken or damaged the property without a formal condemnation proceeding.

How does inverse condemnation differ from a regular eminent domain action?

In eminent domain, the government initiates the taking and pays compensation. In inverse condemnation, the owner initiates the suit claiming the government already took or diminished the property without proper process or payment.

What is escheat, and how does it differ from eminent domain?

Escheat is the reversion of property to the state when an owner dies with no heirs or will. It differs from eminent domain because no compensation is paid and it is not a taking for public use.

What is asbestos and why is it an environmental hazard?

A mineral fiber once used in insulation and building materials. When disturbed, its airborne fibers can be inhaled and cause lung diseases and cancer (e.g., mesothelioma). Encapsulation is often preferred over removal.

Why is lead-based paint a hazard, and which properties are most affected?

Lead is toxic, especially to children, causing developmental and neurological harm. It is most associated with homes built before 1978, when residential lead-based paint was banned.

What disclosure is federally required for lead-based paint?

Under the federal Lead-Based Paint Hazard (Residential Lead-Based Paint Disclosure / Title X) rule, sellers and landlords of pre-1978 housing must disclose known lead hazards, provide an EPA pamphlet, and give buyers a 10-day inspection opportunity.

What is radon and why is it dangerous?

A naturally occurring, colorless, odorless radioactive gas from the breakdown of uranium in soil. It can seep into buildings and is a leading cause of lung cancer. Mitigation involves sub-slab depressurization/ventilation.

What hazard is associated with underground storage tanks (USTs)?

USTs (often holding oil or fuel) can leak and contaminate soil and groundwater, creating costly remediation liability for the property owner.

What is mold and why is it a concern in real estate?

Fungal growth caused by excess moisture that can damage structures and cause respiratory and other health problems. It signals water intrusion and can create disclosure and liability issues.

What does CERCLA (Superfund) do?

The Comprehensive Environmental Response, Compensation, and Liability Act establishes federal liability and a fund for cleaning up hazardous waste sites, holding responsible parties liable for remediation costs.

What does it mean that CERCLA liability is 'strict, joint, and several'?

Strict: liability applies regardless of fault. Joint and several: any one responsible party can be held liable for the entire cleanup cost, even if others also contributed to the contamination.

Who can be held liable as a 'potentially responsible party' (PRP) under CERCLA?

Current owners/operators, owners/operators at the time of disposal, those who arranged for disposal of hazardous substances, and transporters. Even an innocent current owner can be liable absent a defense.

What is the 'innocent landowner' defense under CERCLA?

A defense protecting a buyer from CERCLA liability if, before purchase, they conducted all appropriate inquiry (typically a Phase I ESA) and did not know and had no reason to know of the contamination.

What does a Phase I Environmental Site Assessment (ESA) involve?

A non-intrusive investigation of a property's history and condition (records review, site inspection, interviews) to identify potential or existing environmental contamination. No soil/water sampling is performed.

What triggers a Phase II Environmental Site Assessment?

A Phase II is performed when a Phase I identifies potential contamination. It involves intrusive testing such as soil, groundwater, and material sampling to confirm and quantify contamination.

What is a brownfield?

A property whose redevelopment is complicated by the presence (or potential presence) of contamination. Government programs encourage cleanup and reuse, sometimes offering liability relief and incentives.

What is a FEMA flood zone, and which designations indicate high risk?

FEMA flood zones rate flood risk on Flood Insurance Rate Maps. Zones beginning with A or V are Special Flood Hazard Areas (high risk); V zones are coastal with wave action. Zones X (B/C) are moderate-to-low risk.

When is flood insurance typically required?

When a property in a FEMA-designated Special Flood Hazard Area (Zone A or V) is financed by a federally regulated or insured lender, flood insurance (often via the National Flood Insurance Program) is mandatory.