MARYLAND REAL ESTATE FINAL EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Incentive zoning - ✔✔where a municipality will allow an otherwise prohibited type of
construction if the developer will give the municipality something back. Often this relates
to the floor-to-area ratio, which you can call FAR for short.
✔✔Bulk Zoning - ✔✔restrict the density of buildings in an area through building design
requirements such as floor-area-ratios (FAR), setbacks, lot size, building placement,
and open space requirements. Bulk zoning restrictions are separate from use-based
zoning controls, which limit the type of use permitted in a given area (e.g., residential,
commercial, etc.).
✔✔Aesthetic Zoning - ✔✔will specify, for instance, that all buildings in a neighborhood
have to be of a certain style, such as Victorian or Craftsman, in order to uphold the
architectural integrity of an area.
✔✔Downzoning - ✔✔the process of assigning a lower-density use zone to an area that
previously allowed higher density. Sometimes this is done to limit sprawl and
overgrowth of cities; at other times it is for conservational or recreational purposes.
Downzoning would be used when an area that is built up with large apartment buildings
is cleared, and the area is rezoned for single-family or smaller multi-family dwellings.
✔✔Inverse Condemnation - ✔✔occurs when property value is diminished due to
adjacent land being taken for public use. As a result from downsizing
✔✔Sunshine Law - ✔✔a law prohibiting public officials from holding meetings not open
to the public
✔✔Abutting - ✔✔neighboring land with a common boundary
✔✔Doctrine of Laches - ✔✔Legal loss of a right with the thought that "if you don't use it,
you lose it."
✔✔Restrictive Covenant - ✔✔A promise between two parties appearing on a deed that
specifies what may or may not be done with the real property.
✔✔Planning Board (Purpose) - ✔✔purpose of the planning board is to make sure the
community grows in an orderly fashion. To this end, it maps out zones and specifies the
allowed use within those zones. By controlling the layout and growth of the community,
the planning board supports the dual goals of quality of life and livability.
✔✔Zoning Ordinances (Purpose) - ✔✔Regulates the zoning and permitted land use
documented by a comprehensive plan.
, ✔✔Moratorium - ✔✔a suspension of activity; an authorized delay
✔✔Variance - ✔✔Permitted deviation in the requirements of the zoning ordinance
✔✔Special use permit - ✔✔A permissible use under former rules that is now prohibited -
automatically granted when zoning regulations change
✔✔Non- conforming use - ✔✔Allows the owner to use the property as originally zoned
even though that does not meet current zoning regulations
✔✔Use Variance - ✔✔Permission to use or develop land other than that permitted by
local zoning ordinances.
✔✔Area variance - ✔✔Permission to modify or exceed the bulk regulations imposed by
local zoning ordinances.
✔✔Blockbusting - ✔✔A process by which real estate agents convince white property
owners to sell their houses at low prices because of fear that persons of color will soon
move into the neighborhood
✔✔Performance of a Contract - ✔✔When all contract terms and conditions have been
met
✔✔Partial Performance - ✔✔An exception to the statute of frauds in which the
performance of portions of an unwritten agreement by one or both parties can constitute
proof that an oral contract exists between the parties.
✔✔Time is of the essence - ✔✔A phrase in a contract that requires the performance of
a certain act within a stated period of time.
✔✔Assignment of Contract - ✔✔One party in a contract substitutes another party in his
place. The original party retains secondary liability for the performance of the contract. It
does not require the agreement of the other original party in the contract.
✔✔Novation - ✔✔Substituting a new obligation for an old one or substituting new
parties to an existing obligation.
✔✔Breach of contract - ✔✔the innocent party can terminate the contract, the guilty
party can terminate the contract with permission from the aggrieved party, or they can
mutually agree to rescind the contract.
✔✔Remedying a Breach of Contract Situation - ✔✔Accept partial performance, sue for
specific performance, sue for damages, mutually reconcile the contract
QUESTIONS AND SOLUTIONS RATED A+
✔✔Incentive zoning - ✔✔where a municipality will allow an otherwise prohibited type of
construction if the developer will give the municipality something back. Often this relates
to the floor-to-area ratio, which you can call FAR for short.
✔✔Bulk Zoning - ✔✔restrict the density of buildings in an area through building design
requirements such as floor-area-ratios (FAR), setbacks, lot size, building placement,
and open space requirements. Bulk zoning restrictions are separate from use-based
zoning controls, which limit the type of use permitted in a given area (e.g., residential,
commercial, etc.).
✔✔Aesthetic Zoning - ✔✔will specify, for instance, that all buildings in a neighborhood
have to be of a certain style, such as Victorian or Craftsman, in order to uphold the
architectural integrity of an area.
✔✔Downzoning - ✔✔the process of assigning a lower-density use zone to an area that
previously allowed higher density. Sometimes this is done to limit sprawl and
overgrowth of cities; at other times it is for conservational or recreational purposes.
Downzoning would be used when an area that is built up with large apartment buildings
is cleared, and the area is rezoned for single-family or smaller multi-family dwellings.
✔✔Inverse Condemnation - ✔✔occurs when property value is diminished due to
adjacent land being taken for public use. As a result from downsizing
✔✔Sunshine Law - ✔✔a law prohibiting public officials from holding meetings not open
to the public
✔✔Abutting - ✔✔neighboring land with a common boundary
✔✔Doctrine of Laches - ✔✔Legal loss of a right with the thought that "if you don't use it,
you lose it."
✔✔Restrictive Covenant - ✔✔A promise between two parties appearing on a deed that
specifies what may or may not be done with the real property.
✔✔Planning Board (Purpose) - ✔✔purpose of the planning board is to make sure the
community grows in an orderly fashion. To this end, it maps out zones and specifies the
allowed use within those zones. By controlling the layout and growth of the community,
the planning board supports the dual goals of quality of life and livability.
✔✔Zoning Ordinances (Purpose) - ✔✔Regulates the zoning and permitted land use
documented by a comprehensive plan.
, ✔✔Moratorium - ✔✔a suspension of activity; an authorized delay
✔✔Variance - ✔✔Permitted deviation in the requirements of the zoning ordinance
✔✔Special use permit - ✔✔A permissible use under former rules that is now prohibited -
automatically granted when zoning regulations change
✔✔Non- conforming use - ✔✔Allows the owner to use the property as originally zoned
even though that does not meet current zoning regulations
✔✔Use Variance - ✔✔Permission to use or develop land other than that permitted by
local zoning ordinances.
✔✔Area variance - ✔✔Permission to modify or exceed the bulk regulations imposed by
local zoning ordinances.
✔✔Blockbusting - ✔✔A process by which real estate agents convince white property
owners to sell their houses at low prices because of fear that persons of color will soon
move into the neighborhood
✔✔Performance of a Contract - ✔✔When all contract terms and conditions have been
met
✔✔Partial Performance - ✔✔An exception to the statute of frauds in which the
performance of portions of an unwritten agreement by one or both parties can constitute
proof that an oral contract exists between the parties.
✔✔Time is of the essence - ✔✔A phrase in a contract that requires the performance of
a certain act within a stated period of time.
✔✔Assignment of Contract - ✔✔One party in a contract substitutes another party in his
place. The original party retains secondary liability for the performance of the contract. It
does not require the agreement of the other original party in the contract.
✔✔Novation - ✔✔Substituting a new obligation for an old one or substituting new
parties to an existing obligation.
✔✔Breach of contract - ✔✔the innocent party can terminate the contract, the guilty
party can terminate the contract with permission from the aggrieved party, or they can
mutually agree to rescind the contract.
✔✔Remedying a Breach of Contract Situation - ✔✔Accept partial performance, sue for
specific performance, sue for damages, mutually reconcile the contract
