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  1. 1. A zoning action changed the zoning of an area from commercial to residential. This change in zoning classification would be known as:
    A. combining zones
    B. spot zoning
    C. split zoning
    D. downzoning
    • Answer: D
    • Explanation: Rezoning an area to a more restrictive use is known as downzoning.
  2. 2. Land use controls, master planning, and zoning are important examples of:
    A. police power
    B. eminent domain
    C. deed restrictions
    D. All of the above
    • Answer: A
    • Explanation: The broadest power of the government to regulate for the protection of public health, safety, and welfare is the police power. This includes land use controls on the use of private property.
  3. 3. Enforcement of sanitation requirements for the disposal of sewage in a new subdivision would be the responsibility of the:
    A. city or county public health officer
    B. building inspector
    C. public works director
    D. Real Estate Commissioner
    • Question #3
    • Answer: A
    • Explanation: The local health officer is responsible for sanitation within her jurisdiction, and is likely to be consulted by the planning commission regarding sanitation issues in a proposed subdivision.
  4. 4. Which of the following is an example of police power?
    A. A condemnation proceeding on property where the state intends to build a freeway
    B. Zoning laws that limit and restrict the use made of land
    C. Adjudication of conflicting claims by a court of equity
    D. Creation of restrictive covenants by a subdivider
    • Question #4
    • Answer: B
    • Explanation: Zoning laws are a prime example of the state's police power. Condemnation, however, is an example of the power of eminent domain. Restrictive covenants are private, not public, restrictions.
  5. 5. The housing and construction industry in California is regulated through:
    A. the state Housing Law, local building codes, and state Real Estate Law
    B. the state Health and Safety Code, state Housing Law, and state Real Estate Law
    C. the state Contractor License Law, local building codes, and the state Housing Law
    D. the Department of Housing and Community Development, the state Health and Safety Code, and the state Real Estate Law
    • Answer: C
    • Explanation: Regulation of the homebuilding industry in California is accomplished through local building codes, the state Housing Law, and the state Contractor License Law. The Real Estate Law regulates brokers and salespersons, not builders.
  6. 6. Arnold owns a property that he would like to use for a commercial use but is zoned for residential use. He applies to the city planning commission for a variance but is denied. Which of the following is correct?
    A. This is an example of the city's police power
    B. He may appeal the denial to the city council
    C. Once all administrative remedies are exhausted, he may appeal to a court of law
    D. All of the above
    • Answer: D
    • Explanation: Zoning is an example of local governmental police power. Zoning decisions may be appealed to city or county government and then to the judicial system.
  7. 7. Basic responsibility for zoning decisions lies with the:
    A. planning commission
    B. city engineer's office
    C. county assessor
    D. board of equalization
    • Answer: A
    • Explanation: Most city and county governments have a planning commission that creates a general plan for the community and then creates zoning and other land use regulations to implement that plan.
  8. 8. All of the following are aspects of the power of eminent domain, except:
    A. condemnation proceedings
    B. exercise of zoning authority
    C. just compensation at market value
    D. right of government to take private property for public use
    • Question #8
    • Answer: B
    • Explanation: Zoning laws are derived from the state's police power to regulate for the safety and health of the public, not from the state's power of eminent domain.
  9. 9. The primary purpose of city and county building codes is to:
    A. establish building materials that may be used and the costs of materials
    B. establish minimum building standards for protection of the health and safety of the public
    C. require certain architectural designs as well as size and height of buildings
    D. establish square footage and occupancy requirements for commercial properties
    • Answer: B
    • Explanation: Building codes establish minimum standards for construction and upkeep of buildings, in order to protect the public health and safety. While building codes may require certain materials, they do not specify costs.
  10. 10. Before he is able to sell lots in a subdivision, a subdivider must provide evidence to the Real Estate Commissioner that:
    A. all lots will be connected to necessary utilities
    B. parcels of land will be used for the purpose stated by the subdivider
    C. assessment bonds will not be used for off-site improvements
    D. appropriate measures to mitigate geological hazards have been taken
    • Answer: B
    • Explanation: Under the Subdivided Lands Law, the Real Estate Commissioner may deny a final subdivision public report if there is evidence that the subdivision is unsuitable for the use proposed by the subdivider, or if there is no assurance the purchaser will get what he or she pays for. The developer may not sell lots until the report has been issued.
  11. 11. All of the following items are subject to property tax, except:
    A. a mobile home attached to a permanent foundation
    B. intangible personal property
    C. a parcel of land in an unincorporated area
    D. a proprietary lessee's interest in oil or gas-producing public property
    • Answer: B
    • Explanation: Personal property is not subject to property tax. In addition, intangible personal property (such as business goodwill) is not subject to sales tax.
  12. 12. A property sold for $150,000 in a county where the documentary transfer tax rate was 55 cents for each $500 of consideration or fraction thereof. $125,000 of the purchase price was subject to the tax. The amount of the documentary transfer tax was:
    A. $68.75
    B. $137.50
    C. $165.00
    D. $68,750
    • Answer: B
    • Explanation: The first step is to divide $125,000 (the amount subject to the tax) by $500 ($125,000 ÷ $500 = 250). Then multiply 250 by 55 cents (250 × $.55 = $137.50).
  13. 13. The Real Estate Commissioner would be most likely to deny a final public report for a subdivision if the plans included:
    A. insufficient financing for the development of planned recreational facilities
    B. septic tanks instead of city sewer lines
    C. private roads
    D. insufficient plans for stormwater drainage
    • Answer: A
    • Explanation: The Subdivided Lands Law requires the Real Estate Commissioner to investigate a subdivision and deny a final public report if there is no assurance the purchaser will get what he or she pays for. The other options might be opposed by the local planning commission under the Subdivision Map Act, but would not be a concern of the Real Estate Commissioner.
  14. 14. Police power is:
    A. the power of the state to regulate federal lands for the public good
    B. the power of the state to levy taxes
    C. the power of the state to enact and enforce laws to protect the safety, health, morals, and welfare of the public
    D. the power of the state to take private land
    • Answer: C
    • Explanation: Police power is the state's constitutional power to adopt laws for protection of the public's health, safety, morals, and general welfare.
  15. 15. If the owner of a large parcel of property plans to subdivide it, what is the minimum number of parcels that would make the project subject to the Subdivided Lands Law?
    A. Two
    B. Three
    C. Four
    D. Five
    • Question #15
    • Answer: D
    • Explanation: The Subdivided Lands Law applies to most subdivisions of five or more parcels, including out-of-state subdivisions for which lots are being sold in California.
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