Oregon Real Estate Broker Exam — All Questions

A local government's power to divide land into districts and regulate the use, height, and density of structures within each district is called:

• a.Eminent domain
• b.Zoning✓
• c.A deed restriction
• d.Escheat

Zoning is an exercise of the government's police power to promote public health, safety, and welfare by regulating land use, building height, lot size, and density within designated districts. Escheat is the reversion of property to the state when an owner dies with no heirs. Eminent domain is the power to take private property for public use with just compensation. A deed restriction is a private (not governmental) limitation placed by a prior owner.

Of the government's four powers over land (remembered as PETE), which one lets the government take private property for a public use upon paying just compensation?

• a.escheat when an owner leaves no heirs
• b.taxation to raise public revenue
• c.eminent domain✓
• d.police power to regulate land use

Eminent domain is the power to take private property for a public use, exercised through condemnation, and it requires just compensation. Police power regulates use without taking title, escheat transfers property to the state when an owner dies without heirs, and taxation raises revenue.

The actual legal proceeding through which a government exercises its power of eminent domain is called:

• a.dedication of land to the public
• b.reversion of an estate to a grantor
• c.escheat to the state
• d.condemnation✓

Condemnation is the legal action used to exercise eminent domain and to set just compensation. Escheat is reversion to the state when there are no heirs, dedication is a private owner's gift of land for public use, and reversion returns an estate to a grantor.

Zoning ordinances, building codes, and setback requirements are all exercises of the government's:

• a.the government's right of escheat
• b.police power✓
• c.the power of eminent domain
• d.the power of taxation

Police power lets government regulate land use to protect public health, safety, and welfare - the basis for zoning, building codes, and setbacks - without compensating owners. Eminent domain actually takes property with compensation, while escheat and taxation are separate PETE powers.

An owner wants to build closer to the lot line than the ordinance allows because of an unusual hardship unique to the lot. The owner should apply for a:

• a.a legal nonconforming use predating the rules
• b.a conditional use permit for a special use
• c.variance✓
• d.a complete rezoning of the district

A variance permits a use or dimension that departs from the zoning ordinance because of a special hardship, without changing the zoning itself. A conditional use permit allows a listed special use, a nonconforming use predates the ordinance, and rezoning changes the district classification.

A gas station that lawfully operated before the area was rezoned residential, and is allowed to keep operating, is best described as:

• a.a legal nonconforming use✓
• b.an illegal spot zone
• c.a conditional use permit
• d.a hardship variance granted by the zoning board of appeals

A legal nonconforming use is one that was lawful before a zoning change and is permitted to continue ('grandfathered'), though expansion or rebuilding may be limited. A variance and a conditional use are permissions granted under the current zoning, and spot zoning singles out one parcel improperly.

A church or hospital is permitted within a residential district because it serves the public. This is typically allowed through:

• a.a private deed restriction recorded by the developer
• b.a conditional (special) use permit✓
• c.a legal nonconforming use that predates the ordinance
• d.a variance granted because of an owner's personal hardship

A conditional (special) use permit authorizes a use that is compatible with a district under set conditions, such as a church, school, or hospital in a residential zone. A variance addresses hardship deviations, a nonconforming use predates the ordinance, and a deed restriction is private.

When a valid private deed restriction is more restrictive than the local zoning ordinance, which provision generally controls?

• a.neither, because the conflict makes both unenforceable
• b.the more restrictive of the two✓
• c.the zoning ordinance, which always overrides private restrictions
• d.the less restrictive of the two provisions

When public zoning and a valid private restriction differ, the more restrictive provision generally governs, so an owner must satisfy both. Zoning does not automatically wipe out stricter private covenants, and courts do not default to the more lenient rule or void both.

A comprehensive (master) plan is best described as:

• a.a federal regulation governing residential mortgages
• b.a long-range guide for a community's growth and land use✓
• c.an appraisal report on one specific property
• d.the detailed architectural blueprint for a single building

A comprehensive plan is a local government's long-range policy guide for orderly growth, coordinating land use, transportation, and public facilities; zoning is one tool used to implement it. It is not a single building's plan, a federal rule, or an appraisal.

Subdivision regulations primarily govern:

• a.how raw land is divided into lots with streets and utilities✓
• b.the handling of federal fair housing complaints
• c.the interest rate a lender may charge on a construction loan
• d.the state licensing and examination of appraisers

Subdivision regulations control the division of land into lots and the layout of streets, drainage, and utilities, often requiring a recorded plat approved by the local authority. They do not set loan interest rates, license appraisers, or handle fair housing complaints.

A developer transfers ownership of land for public streets and parks as a condition of subdivision approval. This transfer is called:

• a.dedication✓
• b.adverse possession
• c.escheat
• d.condemnation

Dedication is the transfer of privately owned land to the public for streets, parks, or other public use, common in the subdivision approval process. Escheat and condemnation are governmental acquisitions, and adverse possession is acquiring title through long, hostile occupancy.

If a land-use regulation deprives an owner of essentially all economically viable use of the property, a court may find that the regulation amounts to:

• a.a regulatory taking✓
• b.a variance
• c.a special assessment
• d.a dedication

If a regulation deprives an owner of essentially all economically viable use, courts may find a regulatory taking that requires just compensation, even though ordinary police-power rules need no payment. A variance is relief from zoning, a dedication is a land gift, and a special assessment is a tax for improvements.

A special assessment is a charge levied against specific properties to pay for:

• a.the general operating budget of the state government
• b.the monthly operating and reserve fees charged by a private homeowners association to its members
• c.the federal income taxes owed by the property owner
• d.a local public improvement that benefits those properties, such as sidewalks or sewers✓

A special assessment is a lien placed on the specific parcels that benefit from a local public improvement such as sidewalks, streets, or sewers, apportioned by the benefit received. It differs from general property taxes and from private HOA dues.

The use of a parcel that is legally permitted, physically possible, financially feasible, and maximally productive is called its:

• a.a legal nonconforming use
• b.a leasehold estate
• c.highest and best use✓
• d.a littoral right

Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and most productive, yielding the highest value; it underlies appraisal and site analysis. The other terms describe unrelated estate, zoning, or water concepts.

An owner whose land is completely surrounded by other parcels, with no access to any public road, may obtain access through an easement by:

• a.prescription
• b.estoppel
• c.necessity✓
• d.condemnation

An easement by necessity arises when a parcel is landlocked, giving the owner a legal right of access across the grantor's remaining land. A prescriptive easement comes from long hostile use, estoppel from reliance on permitted use, and condemnation is a government taking.

A temporary moratorium on new building permits and a requirement for environmental impact reports are examples of government controls exercised under:

• a.eminent domain
• b.police power✓
• c.the statute of frauds
• d.the right of escheat

Growth controls such as building moratoriums and environmental review requirements are police-power regulations protecting public welfare and resources. Eminent domain takes property with compensation, escheat handles heirless estates, and the statute of frauds concerns written contracts.