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In many states landowners may make use

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In many states landowners may make use  [#permalink]

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New post 20 May 2016, 10:24
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  95% (hard)

Question Stats:

42% (02:07) correct 58% (02:34) wrong based on 303 sessions

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In many states landowners may make use of a conservation easement, a legal agreement that restricts the use of land. A landowner can donate an easement to a land trust, which amounts to a charitable donation equal to the difference between the market value of the land and its value under the easement restrictions. Normally, owners of unused farmland and other undeveloped property are often under market pressure to sell to developers, who can offer much more for it than could be made from renting the property. These owners should take advantage of conservation easements to prevent unwanted development.

Which of the following, if true, most seriously weakens the argument?
(A) Some land trusts are for-profit enterprises that buy and sell properties whose use is restricted.
(B) Land donated using an easement is usually located in areas with very low population density.
(C) Some landowners are able to split up their properties such that part of the land is donated to a trust and the rest continues to earn rents for the owner.
(D) Most property owners can make more money by renting their property than by donating an easement and taking the corresponding tax benefits.
(E) When land use is restricted, the value of surrounding unrestricted land rises.
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Re: In many states landowners may make use  [#permalink]

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New post 20 May 2016, 11:28
Premise: Land owners make a legal agreement that restricts that the use of land.
Owners of unused lands are under pressure to sell to developers. Owners get more money if the land is sold to developers.

Conclusion: Owners should make use of the easement (legal agreements) to prevent unwanted developments.

Possible Weakener: Legal agreements that restrict the land use are not beneficial to owners.

(A) Some land trusts are for-profit enterprises that buy and sell properties whose use is restricted. - Incorrect - 'Some land trusts are for profit enterprises.' Others may be genuine.

(B) Land donated using an easement is usually located in areas with very low population density. - Incorrect - Irrelevant

(C) Some landowners are able to split up their properties such that part of the land is donated to a trust and the rest continues to earn rents for the owner. - Incorrect - Has no effect on the conclusion.

(D) Most property owners can make more money by renting their property than by donating an easement and taking the corresponding tax benefits. - Correct

(E) When land use is restricted, the value of surrounding unrestricted land rises. - Incorrect - Irrelevant. We are not bothered about the rise in value of surrounding lands.

Answer: D
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Re: In many states landowners may make use  [#permalink]

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New post 20 May 2016, 12:54
happy1992 wrote:
In many states landowners may make use of a conservation easement, a legal agreement that restricts the use of land. A landowner can donate an easement to a land trust, which amounts to a charitable donation equal to the difference between the market value of the land and its value under the easement restrictions. Normally, owners of unused farmland and other undeveloped property are often under market pressure to sell to developers, who can offer much more for it than could be made from renting the property. These owners should take advantage of conservation easements to prevent unwanted development.

Which of the following, if true, most seriously weakens the argument?

(A) Some land trusts are for-profit enterprises that buy and sell properties whose use is restricted.
(B) Land donated using an easement is usually located in areas with very low population density.
(C) Some landowners are able to split up their properties such that part of the land is donated to a trust and the rest continues to earn rents for the owner.
(D) Most property owners can make more money by renting their property than by donating an easement and taking the corresponding tax benefits.
(E) When land use is restricted, the value of surrounding unrestricted land rises.


Our objective is to weaken the conclusion ( highlighted above )

None but (D) states that owners take advantage of conservation easements for 2 specific benefits -

1. Make more money by renting their property
2. Tax benefits

Thus (D) presents alternate reasons for choice of renting their property and hence weaken the conclusion....

Hence answer will be (B)
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Abhishek....

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Re: In many states landowners may make use  [#permalink]

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New post 29 Sep 2018, 17:48
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: In many states landowners may make use &nbs [#permalink] 29 Sep 2018, 17:48
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