CA Real Estate Principles Course » 2021 » Section 15 Unit 2 Exam

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Question #1
Chadwick is a developer considering purchasing a large piece of unimproved land for a subdivision development. What should he do before committing to the project?
A.   Conduct a feasibility study.
B.   Phone a friend.
C.   Apply for financing.
D.   Start marketing the property to see if there are buyers.
Question #2
Why may a developer have to pay impact fees?
A.   To address a violation of zoning ordinances
B.   To apply for a use variance from the Zoning Board of Appeals
C.   To pay for an Environmental Impact Statement
D.   To address the burden on existing infrastructure caused by the development
Question #3
In order for a Adroc Development Corp. to receive approval to build a new subdivision, it is required to create a community park bordering the development. The developer agreed to do so, but what may the city require to ensure the park actually gets completed?
A.   A promissory note
B.   An IOU
C.   A completion bond
D.   A feasibility study
Question #4
Determining who the buyers of subdivision homes are, the market niche to target, and whether to have different price points for various phases of development are all considerations in the ___________.
A.   Feasibility study
B.   Subdivision lot release plan
C.   Marketing strategy
D.   Environmental assessment
Question #5
Which type of contract allows developers to enter into binding contracts with purchasers?
A.   Conditional report
B.   Interim report
C.   Preliminary report
D.   Binding report
Question #6
Which of the following involves street specifications, lot size, single- or multi-family dwellings, utilities provided and easements, how far houses must be set back from property lines, and drainage requirements?
A.   Subdivision regulations
B.   Alquist-Priolo Act
C.   Abstract of title
D.   CEQA
Question #7
What's an outlot?
A.   The main roadway leading into and out of a subdivision
B.   The parcel of land where a home in a subdivision is built
C.   A parcel of land left over after the subdivision is built
D.   The cornerstone space of a retail center occupied by an anchor tenant
Question #8
In which type of common interest subdivision are the owner’s shareholders in a corporation that owns the property?
A.   Stock cooperative project
B.   Time-share
C.   Condominium project
D.   Planned development

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