A developer approaches broker Lisa in Portland about purchasing a 15-acre parcel currently inside the city's UGB but zoned as open space. The developer wants to build a mixed-use commercial and residential project. The developer argues that because the parcel is inside the UGB, Oregon's land use planning system places no restrictions on how the land can be developed. How should Lisa respond?
Correct Answer
A) Lisa should advise the developer that being inside a UGB is a necessary but not sufficient condition for urban development — local zoning, comprehensive plan designations, and applicable state planning goals still govern permitted uses
Being inside a UGB is a necessary but not sufficient condition for urban development. A parcel inside a UGB must also comply with local zoning ordinances, the city's comprehensive plan, and applicable statewide planning goals. An open space zoning designation restricts development regardless of UGB status. To develop the parcel for mixed-use commercial and residential purposes, the developer would need to pursue a zone change or comprehensive plan amendment through the local government — a process subject to public hearings, findings of compliance with statewide planning goals, and potential appeal. Lisa should make clear that UGB location alone does not guarantee development rights.
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Related Concepts
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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