Land Use & Zoning
Under New York Town Law, a 'performance bond' in subdivision approval is used to:
AGuarantee the developer's profits
BEnsure the developer completes required public improvements (roads, sewers, sidewalks) before the municipality accepts them✓ Correct
CProtect neighboring landowners from noise during construction
DGuarantee the sale of all lots in the subdivision
Explanation
A performance bond (or letter of credit) required by the Planning Board ensures that the developer will complete required subdivision improvements (roads, utilities, etc.) within a specified time.
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Math Concepts
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