Environmental
Rhode Island's 'Groundwater Quality Act' is important in real estate because:
AIt sets maximum property tax rates for properties with wells
BIt establishes standards for groundwater quality and regulates activities that may impact drinking water sources, affecting development in areas with private wells✓ Correct
CIt requires CRMC review of all private wells
DIt mandates flood insurance for all properties near water
Explanation
The Rhode Island Groundwater Quality Act establishes standards for groundwater and regulates activities that could threaten groundwater quality. For properties relying on private wells, groundwater quality is a key due diligence concern.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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