California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 740

When is a landowner entitled to compensation for a change in zoning?

when the zoning change affects property values negatively

when the landowner is denied all practical economic use of the property

When a landowner is denied all practical economic use of their property due to a change in zoning, they are entitled to compensation. This means that they are unable to make any reasonable use of their land, making it essentially unusable or worthless. The other options (A, C, and D) are incorrect because they are not comprehensive enough to cover all scenarios where a landowner may be entitled to compensation. A change in zoning may negatively affect property values (A), but the landowner may not necessarily be entitled to compensation in this scenario. Additionally, compensation is not limited to residential properties (C) and can also apply to commercial properties (D). It is only when the landowner is completely denied any practical use of their land that they are entitled to compensation (B).

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only if the property is residential

when the property is re-zoned for commercial use

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