Legal Aspects of Real Estate ACTUAL
UPDATED Exam Questions and
CORRECT Answers
In which court case did the property owner successfully challenge the restrictive conditions on
development imposed by the public agency?
(A) Easton v. Strassburger
(B) Euclid v. Ambler Realty Co.
(C) Nollan v. California Coastal Commission
(D) Zellers v. State of California - CORRECT ANSWER - (C) Nollan v. California
Coastal Commission Hint: The homeowners in Nollan v. California Coastal Commission won
their case in the U.S. Supreme Court.
A federal agency that wants to undertake an activity on federally-owned property in California:
(A) can do so immediately without environmental review, because of the Supremacy Clause of
the Constitution.
(B)must comply with the procedures under the National Environmental Policy Act.
(C) must comply with the procedures under the California Environmental Quality Act.
(D) is exempt from complying with the procedures under the National Environmental Policy Act.
- CORRECT ANSWER - (B)must comply with the procedures under the National
Environmental Policy Act. Hint: NEPA requires that federal agencies and other entities
undertaking activities on federal property conduct an environmental analysis of the proposed
project
Which state law requires the preparation of a public report for all major subdivisions?
(A) Interstate Land Sales Full Disclosure Act
(B) State Housing Law
(C) Subdivided Lands Law
(D) Subdivision Map Act - CORRECT ANSWER - (C) Subdivided Lands Law Hint: The
Lands Law requires the preparation of a public report for all major subdivisions.
,Which is not one of the four powers of government that affects private ownership of real estate?
(A) Eminent domain
(B) Escheat
(C) Replevin
(D) Taxation - CORRECT ANSWER - (C) Replevin Hint: All private ownership of real
estate is subject to the legitimate powers of government, which includes eminent domain,
taxation, escheat, and police power. Replevin is a legal remedy for a person to recover goods
unlawfully withheld from his or her possession
The Comprehensive Environmental Response, Compensation, and Liability Act is also known as
the Superfund because it:
(A) consists of three trust funds for the cleanup of properties.
(B) consists of two trust funds used for cleaning up properties.
(C) establishes one large account funded by wealthy philanthropists.
(D) establishes one large account from property tax collections. - CORRECT ANSWER -
(B) consists of two trust funds used for cleaning up properties. Hint: It is called Superfund
because it establishes two trust funds to help finance the cleanup of properties that are impacted
by the release of hazardous wastes and substances.
Andy has a parcel with an elevation that is substantially lower than most of the neighboring
properties. In order to have the same view as neighboring parcels, a house built on his parcel will
have to be 18 feet higher than the height limit for the zoning district. If he is to build such a
house, he will need:
(A) an amendment to the zoning district.
(B) to have the property re-zoned.
(C) to obtain a conditional use permit.
(D) to obtain a variance. - CORRECT ANSWER - (D) to obtain a variance. Hint: A
variance is a local land use decision allowing a use not strictly in compliance with local zoning
or building regulations because of unique conditions of the property in question such as its size,
topography, shape, etc., to which the strict application of a zoning ordinance would deprive the
property of privileges enjoyed by other property in the vicinity.
Which of the following are among the mandatory elements of a general plan?
,(A) Parks and recreation, noise, and water use
(B) Land use, housing, and public safety
(C) Open space, water use, and seismic safety
(D) Housing, public utilities, and roads - CORRECT ANSWER - (B) Land use, housing,
and public safety Hint: All general plans must have seven mandatory elements: land use;
circulation; conservation; housing; noise; public safety; and open space.
Patrick wants to operate a new use on a parcel in the California city where he owns property. The
city planning department's staff report for his project concludes that there will be no
environmental impacts and no one appears at the city hearing to oppose his project. His project
will probably require a(n):
(A) categorical exemption.
(B) environmental impact report.
(C) environmental impact statement.
(D) negative declaration. - CORRECT ANSWER - (D) negative declaration. Hint: A
negative declaration required by CEQA analyzes a project's anticipated environmental impacts
and explains why the project, as proposed or with changes, will not have the potential to cause
significant impacts to the environment
Which of the following is true about a change in zoning that makes a use nonconforming?
(A) Such a zoning change would be illegal.
(B) California courts will always award the owner monetary compensation.
(C) The owner will be allowed to continue the use if it is not a nuisance.
(D) The owner of the property has an absolute right to expand the use. - CORRECT
ANSWER - (c) The owner will be allowed to continue the use if it is not a nuisance. Hint:
Nonconforming uses that existed prior to the adoption of the current zoning that were lawful
when established and are not nuisances are normally allowed to continue indefinitely, but cannot
be expanded
Bill has an auto parts business on property zoned commercial. The city's zoning for commercial
properties allows the sale of auto parts as a matter of right, but states that the city has authority to
approve or deny the repair of automobiles on the same premises. If Bill wants to start an auto
repair business on the same lot, he must: (A) have the property re-zoned.
, (B) obtain a variance.
(C) seek a conditional use permit.
(D) sue the city, arguing that the restriction amounts to a "taking." - CORRECT
ANSWER - (C) seek a conditional use permit. Hint: A conditional use is a use that is not
allowed as a matter of right, but that might be allowed if the owner gets a special permit, also
known as a conditional use permit (CUP).
If the boundary is a road, where is the boundary line situated?
(A) Center of the road
(B) Left side of the road
(C) Right side of the road
(D) Side nearest the largest parcel holder - CORRECT ANSWER - (A) Center of the road
Hint: If the boundary is a road, the boundary line usually is the center of the road.
Who owns navigable non-tidal waters in California?
(A) Adjacent landowners
(B) Federal government
(C) Private landowners
(D) State of California - CORRECT ANSWER - (D) State of California Hint: Navigable
non-tidal waters are owned by the state of California.
The commonality of party walls, division fences, and line trees is that they are considered:
(A) common areas.
(B) common boundary improvements.
(C) common interest developments.
(D) common nuisances. - CORRECT ANSWER - (B) common boundary improvements.
Hint: Common boundary improvements that indicate the property boundary line include party
walls, division fences, and line trees.
What is another term for a coterminous owner?
UPDATED Exam Questions and
CORRECT Answers
In which court case did the property owner successfully challenge the restrictive conditions on
development imposed by the public agency?
(A) Easton v. Strassburger
(B) Euclid v. Ambler Realty Co.
(C) Nollan v. California Coastal Commission
(D) Zellers v. State of California - CORRECT ANSWER - (C) Nollan v. California
Coastal Commission Hint: The homeowners in Nollan v. California Coastal Commission won
their case in the U.S. Supreme Court.
A federal agency that wants to undertake an activity on federally-owned property in California:
(A) can do so immediately without environmental review, because of the Supremacy Clause of
the Constitution.
(B)must comply with the procedures under the National Environmental Policy Act.
(C) must comply with the procedures under the California Environmental Quality Act.
(D) is exempt from complying with the procedures under the National Environmental Policy Act.
- CORRECT ANSWER - (B)must comply with the procedures under the National
Environmental Policy Act. Hint: NEPA requires that federal agencies and other entities
undertaking activities on federal property conduct an environmental analysis of the proposed
project
Which state law requires the preparation of a public report for all major subdivisions?
(A) Interstate Land Sales Full Disclosure Act
(B) State Housing Law
(C) Subdivided Lands Law
(D) Subdivision Map Act - CORRECT ANSWER - (C) Subdivided Lands Law Hint: The
Lands Law requires the preparation of a public report for all major subdivisions.
,Which is not one of the four powers of government that affects private ownership of real estate?
(A) Eminent domain
(B) Escheat
(C) Replevin
(D) Taxation - CORRECT ANSWER - (C) Replevin Hint: All private ownership of real
estate is subject to the legitimate powers of government, which includes eminent domain,
taxation, escheat, and police power. Replevin is a legal remedy for a person to recover goods
unlawfully withheld from his or her possession
The Comprehensive Environmental Response, Compensation, and Liability Act is also known as
the Superfund because it:
(A) consists of three trust funds for the cleanup of properties.
(B) consists of two trust funds used for cleaning up properties.
(C) establishes one large account funded by wealthy philanthropists.
(D) establishes one large account from property tax collections. - CORRECT ANSWER -
(B) consists of two trust funds used for cleaning up properties. Hint: It is called Superfund
because it establishes two trust funds to help finance the cleanup of properties that are impacted
by the release of hazardous wastes and substances.
Andy has a parcel with an elevation that is substantially lower than most of the neighboring
properties. In order to have the same view as neighboring parcels, a house built on his parcel will
have to be 18 feet higher than the height limit for the zoning district. If he is to build such a
house, he will need:
(A) an amendment to the zoning district.
(B) to have the property re-zoned.
(C) to obtain a conditional use permit.
(D) to obtain a variance. - CORRECT ANSWER - (D) to obtain a variance. Hint: A
variance is a local land use decision allowing a use not strictly in compliance with local zoning
or building regulations because of unique conditions of the property in question such as its size,
topography, shape, etc., to which the strict application of a zoning ordinance would deprive the
property of privileges enjoyed by other property in the vicinity.
Which of the following are among the mandatory elements of a general plan?
,(A) Parks and recreation, noise, and water use
(B) Land use, housing, and public safety
(C) Open space, water use, and seismic safety
(D) Housing, public utilities, and roads - CORRECT ANSWER - (B) Land use, housing,
and public safety Hint: All general plans must have seven mandatory elements: land use;
circulation; conservation; housing; noise; public safety; and open space.
Patrick wants to operate a new use on a parcel in the California city where he owns property. The
city planning department's staff report for his project concludes that there will be no
environmental impacts and no one appears at the city hearing to oppose his project. His project
will probably require a(n):
(A) categorical exemption.
(B) environmental impact report.
(C) environmental impact statement.
(D) negative declaration. - CORRECT ANSWER - (D) negative declaration. Hint: A
negative declaration required by CEQA analyzes a project's anticipated environmental impacts
and explains why the project, as proposed or with changes, will not have the potential to cause
significant impacts to the environment
Which of the following is true about a change in zoning that makes a use nonconforming?
(A) Such a zoning change would be illegal.
(B) California courts will always award the owner monetary compensation.
(C) The owner will be allowed to continue the use if it is not a nuisance.
(D) The owner of the property has an absolute right to expand the use. - CORRECT
ANSWER - (c) The owner will be allowed to continue the use if it is not a nuisance. Hint:
Nonconforming uses that existed prior to the adoption of the current zoning that were lawful
when established and are not nuisances are normally allowed to continue indefinitely, but cannot
be expanded
Bill has an auto parts business on property zoned commercial. The city's zoning for commercial
properties allows the sale of auto parts as a matter of right, but states that the city has authority to
approve or deny the repair of automobiles on the same premises. If Bill wants to start an auto
repair business on the same lot, he must: (A) have the property re-zoned.
, (B) obtain a variance.
(C) seek a conditional use permit.
(D) sue the city, arguing that the restriction amounts to a "taking." - CORRECT
ANSWER - (C) seek a conditional use permit. Hint: A conditional use is a use that is not
allowed as a matter of right, but that might be allowed if the owner gets a special permit, also
known as a conditional use permit (CUP).
If the boundary is a road, where is the boundary line situated?
(A) Center of the road
(B) Left side of the road
(C) Right side of the road
(D) Side nearest the largest parcel holder - CORRECT ANSWER - (A) Center of the road
Hint: If the boundary is a road, the boundary line usually is the center of the road.
Who owns navigable non-tidal waters in California?
(A) Adjacent landowners
(B) Federal government
(C) Private landowners
(D) State of California - CORRECT ANSWER - (D) State of California Hint: Navigable
non-tidal waters are owned by the state of California.
The commonality of party walls, division fences, and line trees is that they are considered:
(A) common areas.
(B) common boundary improvements.
(C) common interest developments.
(D) common nuisances. - CORRECT ANSWER - (B) common boundary improvements.
Hint: Common boundary improvements that indicate the property boundary line include party
walls, division fences, and line trees.
What is another term for a coterminous owner?
