Land Use Regulations: What the NY Real Estate Exam Tests

Land use questions test your understanding of how governments control property development through zoning, environmental law, and the power of eminent domain.

Expect 3-5 questions. Zoning variances and nonconforming uses appear most frequently.

Zoning

Zoning divides a municipality into districts (residential, commercial, industrial) and regulates what can be built. Zoning is an exercise of police power, which means no compensation is paid to property owners. A zoning change that applies to a wide area is called a rezoning or amendment.

Variances and Special Use Permits

A variance allows a property owner to deviate from zoning rules due to hardship. A use variance allows a different use (harder to get). A bulk or area variance allows deviation from setback, height, or lot size requirements. A special use permit allows a specific use that the zoning code permits with conditions (e.g., a church in a residential zone).

Nonconforming Uses

When zoning changes, an existing use that no longer complies is called a nonconforming use (grandfathered). The property can continue its current use, but the nonconforming use generally cannot be expanded or rebuilt if destroyed.

Environmental Regulations

CERCLA (Superfund) holds current and past owners liable for contamination cleanup. Lead paint disclosure is required for homes built before 1978. SEQRA (State Environmental Quality Review Act) requires environmental impact review for major development projects in NY.

Sample Exam Questions

Nonconforming Use

1. A retail store that was legally operating when its neighborhood was rezoned residential may:

ABe forced to close immediately upon rezoning
Continue operating but cannot expand the nonconforming use
CExpand because it predates the new zoning
DApply for a variance to expand as desired

A nonconforming use that predates the zoning change is grandfathered in. However, it cannot be expanded, substantially rebuilt if destroyed, or resumed if abandoned.

Variance

2. A homeowner wants to build an addition that would be 3 feet closer to the side lot line than zoning allows. They should apply for:

AA special use permit from the Planning Board
BA use variance from the ZBA
An area (dimensional) variance from the ZBA
DA rezoning of the parcel

An area variance is permission to deviate from dimensional requirements like setbacks, height limits, or lot coverage. A use variance permits an otherwise prohibited use, a much higher legal standard.

Lead Paint

3. Under federal law, sellers of homes built before 1978 must:

AProvide a professional lead paint inspection report at their expense
BPay for lead abatement before closing
Disclose known lead paint hazards and provide buyers a 10-day testing opportunity
DWarrant in the contract that no lead paint is present

The Residential Lead-Based Paint Hazard Reduction Act requires disclosure of known lead paint, the EPA pamphlet, and a 10-day buyer testing opportunity. No inspection or abatement is mandated by this law.

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Key Terms to Know

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