Local government regulation dividing land into districts and restricting the use of property within each.
Why Zoning matters on the exam
This term belongs to Land Use Controls. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Zoning
Every Freehold question shows why the right answer is right — and cites its source.
'Procuring cause' is a concept most often used to resolve disputes over:
Trust account shortages discovered during a routine regulatory audit of the brokerage's escrow and operating records
Property tax assessment appeals filed by an owner with the county review board
Which agent or brokerage was the primary cause of a completed sale for purposes of commission entitlement
Zoning variance applications heard by the local board of adjustment
Show answer & explanation
Which agent or brokerage was the primary cause of a completed sale for purposes of commission entitlement — Procuring cause determines which broker or agent was the effective, primary cause of bringing about a sale, which matters for allocating commission, especially in cooperating-broker disputes.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which information should a buyer's agent generally keep confidential from the seller unless the buyer authorizes disclosure?
A known material defect in the property
The buyer's maximum purchase price
The property's zoning classification
The legal description in the purchase offer
Show answer & explanation
The buyer's maximum purchase price — A buyer's maximum price and negotiating motivation are confidential client information, unlike material property facts that must be handled honestly and lawfully.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
A portion of a listed property is classified as protected wetlands, significantly limiting where a buyer could build an addition. This classification is:
Irrelevant unless the buyer asks specifically about zoning
A private matter left to the buyer's own due diligence with no disclosure duty
A material fact affecting the property's use and value that should be disclosed
Something only the seller's attorney needs to know
Show answer & explanation
A material fact affecting the property's use and value that should be disclosed — A wetlands designation can severely restrict development and use of the land, so it directly affects value and desirability and must be disclosed as a material fact.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
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