Chapter 8
The broker does not become an employee of the owner but is employed by the owner and remains an _______ _______
Independent contractor
_________ property management is focused on warehouse space, manufacturing facilities, and larger complexes. They could also oversee distribution facilities and ministorage facilities. The majority of the time, they will be focused on the budgeting and maintenance of the facility rather than with the daily operations of the businesses who occupy the properties.
Industrial
As a fiduciary, or person of trust, the agent owes the principal what 6 duties?
OLDCAR 1. Obedience to lawful instructions 2. Loyalty to the interests of the principal; putting the principal's interest above your own 3. Disclosure that is informative and influential to the decision-making process 4. Confidentiality is the one duty that remains in place forever. 5. Accounting for all funds received or dispersed 6. Reasonable Care and Diligence; being knowledgeable about real estate matters
________ property management is the management of property owned by another party or entity.
Professional
________ _______ is the operation, control, and oversight of commercial or residential real estate.
Property Management
A ______ is a cyclical economic contraction that lasts for __ months or longer
Recession
In the ________ stage of the business/economic cycle, consumers frequently postpone major purchases and shift buying patterns toward basic, functional products carrying low prices. Businesses mirror these changes in the marketplace by slowing production, postponing expansion plans, reducing inventories, and often cutting the size of their workforce. Supply surpasses the demand for products.
Recession
In the _______ stage of the business/economic cycle, the economy emerges from recession and consumer spending picks up steam. Even though businesses often continue to rely on part time and other temporary workers during the early stages, unemployment begins to decline, as business activity accelerates, and firms seek additional workers to meet growing production demands. Gradually, the concerns of recession begin to disappear, and consumers start purchasing more discretionary items such as vacations and new computer equipment. It is important to note that this phase does not necessarily take place at a steady pace.
Recovery
Once a manager is chosen to represent the owner of the property, the property manager should sign a Property Management Agreement with the owner of the property. A member of the Texas REALTORS® could use the ___ ______ _____ ___ _____ _____ _______.
TR Residential Leasing and Property Management Agreement.
________ fiduciaries hold broad authority to act on behalf of the Principal.
Universal
A review of rents in the surrounding area is necessary to stay abreast of market changes and should be done ______
annually
A general agent can _____ their principal to an agreement. So, for the principal, it is of utmost importance to find someone to manage the property who has _______ and can be _______.
bind / integrity / trusted
A Property Management Agreement is an _______ agreement between the owner and the broker. The agreement will have a _____ date and an ______ date and will automatically extend on a monthly basis until either party gives a ___ day notice and terminates the agreement. The termination must be ___ _____. The agreement will set the manager's authority and duties
employment / start / expiration / 30 / in writing
While not required by law, it is advised that all ads should display the ______ _____ ____ ___ ____
equal housing logo and slogan
Ethics is a system of moral principles, or rules of conduct that refer to ______, _______, and ________.
fidelity / integrity / competency
The property manager is a _______ and therefore owes all the obligations imposed by the law of _______ to each owner-principal.
fiduciary / agency
In most instances, the property manager acts as a ______ agent to the principal by carrying out various duties
general
Whatever the owner's objective is, the management plan should be based on the owner's _____
goal
Professional Property Managers are often called upon to manage _________ _______ for condominium or cooperative developments
homeowner associations
The fundamental responsibility of the property manager is to give the owner of the property accurate, concise reporting of the _____ and _____ of a property in a financial report
income / expenses
Owners should look for property managers with ______ , who are also ________
integrity / trustworthy
By definition, a ______ is a contractual arrangement calling for the lessee (tenant) to pay the lessor (owner) for use of an asset
lease
All Fair Housing laws apply to _____ as well as to sales.
leasing
Texas law requires a broker who is a residential rental locator to prominently display their ________ in their place of business and additionally to have a statement they are ______ ____ _____. Other license holders practicing brokerage no longer have to meet this requirement as of 9/2003.
licenses / licensed by TREC
For property management, agents and owners should first enter into a _______ agreement
management
One of the responsibilities of a property manager is to keep the owner of the property informed as to the _____ _____ of his "asset."
market value
A professional _______ ____ must take into consideration basic economic trends to assess the current and future potential of a property.
marketing plan
The main objective of most investment property owners is to ______ _____
maximize income
Although by definition any property that contains more than one family would qualify as a _____-_____ property, the term ______-_____ generally refers to apartment buildings, high-rise luxury properties, warehouse loft conversions, townhomes, and condominiums
multi-family / multi-family
The broker's fees are always _______ between the property owner and the broker
negotiable
Many property managers will not take an agreement for less than ___ ____
one year
The parties to the Property Management Agreement are the _____ and the ______ who is going to be the manager
owner / broker
The management fee, leasing fee for new tenants, and the renewal or extension fee can be a flat amount but is more often a ________ of one month's rent.
percentage
An individual owner could manage his own property, but often hires a ________ to manage the property for him
professional
_______, ______, and _______ are common assets that are leased and require lease contracts. Industrial or business _______ is also leased.
property / buildings / vehicles / equipment
Some companies can actually manage to _____ during poor economic times
prosper
In the ________ phase of the business/economic cycle, unemployment remains low, strong consumer confidence about the future leads to record purchases, and businesses expand to take advantage of marketplace opportunities.
prosperity
The property manager must allow a handicapped person to make any _______ ________ to the property to meet the person's needs.
reasonable modifications
The purpose of the Americans with Disabilities Act (ADA) is to ______ _____. The Act basically states that employers and managers ensure that workers and disabled people entering a business have full and equal access to facilities and services.
remove barriers
A market analysis of the ______ and comparison of ______ in various projects in the vicinity of the subject property can be extremely helpful to the owner of the property
rents / amenities
The property manager and owner will determine the amount of rent to be placed in a ______ ____ for the property. These monies will then be used as necessary replacement expenditures occur. The amount should be adequate to stabilize any emergency situation that could arise.
reserve fund
Residential property managers typically oversee real estate occupied by individuals as a _______
residence
In all activities, the manager must be aware that his or her responsibility is to realize the highest _______ on the property that is consistent with the owner's _______ and _______
return / objectives / instructions
Fair Housing laws may vary from _____ to _____ and _____ to _____ as each jurisdiction can include added protections.
state to state / city to city
A property manager, other than a salaried or hourly employee of the owner, must have a real estate license to collect a fee for procuring ______.
tenants
In addition to leasing, marketing, and maintaining a property, property management specialists are needed to secure ______, collect _____, _____ and _______ employees, and budget _______
tenants / rents / hire / supervise /expenses
What are the 5 types of properties that can benefit from real estate management services?
1) Residential property management 2) Retail or commercial property management 3) Industrial property management 4) Farm property management 5) Management of homeowners' association
The result of not following housing laws can result in what 3 things?
1. Loss of license 2. A lawsuit 3. Jailtime
What are the 4 phases of a business/economic cycle?
1. Prosperity 2. Recession 3. Depression 4. Recovery
What are the 3 broad classes of fiduciary?
1. Universal fiduciaries 2. General agents 3. Special agents
The Great Depression was during the ____s
1930s
The Americans with Disabilities Act (ADA) was enacted in _____, made effective in _____, and applies to _______ businesses and for businesses with ___ or more employees or any business that is open to the public regardless of how many employees
1990 / 1992 / commercial / 15
Any commercial property built after ______ must be built to ADA codes. All properties built before that were grandfathered
1992
The Americans with Disabilities Act (ADA) was amended in ______ to include AIDS, HIV-related illnesses, or HIV infection as defined by the Centers for Disease Control of the United States Public Health Service. These changes are referred to as the ___ ____ _____ or _____
2008 / ADA Amendments Act / ADAAA
A broker who enters into a property management contract is considered a: A. Fiduciary B. Principal C. Trustee D. Trustor
A
A person, other than a salaried or hourly employee of the owner, must have a real estate license to collect a fee for procuring tenants. A. True B. False
A
A universal agent has wide authority to act on another's behalf, but a general agent or special agent has more limited and specific powers. A. True B. False
A
As a professional counselor, you may want to develop good working relationships with other property managers on other properties to cross refer potential tenants. A. True B. False
A
Industrial Property Managers must be knowledgeable about tax rates, tax incentives, available labor force, commercial financing, and community services. A. True B. False
A
It is a necessity that a property manager be current with applicable municipal, county, state, and federal Fair Housing laws and practices. A. True B. False
A
Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined. A. True B. False
A
The business economy cycle describes the rise and fall in production output of goods and services in an economy. A. True B. False
A
The parties to the Property Management Agreement are the owner and the broker. A. True B. False
A
Universal agency is not used in property management A. True B. False
A
With the TAR Residential Buyer-Tenant Representation Agreement, the Client grants to Broker the exclusive right to act as Client's real estate agent for the purpose of acquiring property in the market area. A. True B. False
A
With the TAR Residential Leasing and Property Management Agreement, unless either party provides written notice of termination to the other party at least 30 days before the Expiration Date, the agreement will automatically extend on a monthly basis until either party terminates by providing at least 30 days written notice to the other party. A. True B. False
A
Apartment buildings are often considered as commercial real estate, even though they are used for residences. A. True B. False
A. They're often considered commercial real estate because they are owned to produce income
The ______ ____ _____ ____ was enacted in 1990, made effective in 1992, and applies to commercial businesses and for businesses with 15 or more employees or any business that is open to the public regardless of how many employees
Americans with Disabilities Act (ADA)
A Real Estate agent does not need to be a member of TR® to use the TR® forms. A. True B. False
B
A licensed real estate agent may only give an unlicensed person a gift of $75 or more. A. True B. False
B
A person does not need a real estate license to manage property. A. True B. False
B
An appraiser is the one responsible for performing a comparative market analysis. A. True B. False
B
The management plan itself will be the same for all owners. A. True B. False
B
The property manager does not have a fiduciary obligation to anyone. A. True B. False
B
The property manager may not file the eviction and appear before the JP to represent the landlord. A. True B. False
B
What is one of the most fundamental fiduciary duties owed by an agent to his principal? A. Confidentiality B. Loyalty C. Disclosure D. Obedience
B
When the property has become uninhabitable, the tenant has no recourse. A. True B. False
B
The principal or owner should look for a property manager who adheres to the _____ __ _____ and ______ __ _____
Code of Ethics / Standards of Practice
________ property managers oversee the day to-day operations of buildings and complexes, such as malls or office parks. Their duties typically include collecting rent, negotiating leases, and supervising cleaning and maintenance activities. They may also process payrolls or pay insurance, mortgage, and tax bills. Additional duties include communicating with owners about occupancy levels and property conditions or preparing financial statements.
Commercial
A property manager should complete a ______ ______ _____ on the property at least annually
Competitive Market Analysis (CMA)
Should the economic slowdown continue in a downward spiral over an extended time, the economy falls into ________
Depression
Newspapers are required to state that all properties are protected under the _______ _____ ____ in the property section of their classifieds
Equal Housing Law
What are the 7 protected classes under Fair Housing Laws?
FRESH CORN 1. Race 2. Color 3. National Origin 4. Religion 5. Sex 6. Handicap 7. Familial Status
What are the 7 protected Classes under the Civil Rights Act of 1968?
FRESH CORN 1. Race 2. Color 3. Religion 4. National Origin 5. Sex 6. Handicap 7. Familial Status
_______ agents hold a more limited authority to conduct a series of transactions over a continuous period
General
_______ ________ managers (or _____ managers as they are commonly referred to) are hired to enforce the by-laws and manage the common grounds which are shared by owners and occupants in a subdivision, a high-rise building, a condominium complex, or a co-op. They may be charged with accounting for dues, budgeting, obtaining bids, overseeing repairs, and providing the framework of legal documents that establish the rules and regulations to which all occupants must adhere.
Homeowner association / HOA
The property manager's job can be summarized into what 3 areas of activities?
1) Administration 2) Marketing 3) Physical management
Title VIII of the Civil Rights Act of _____, as amended, makes it illegal to discriminate due to race, color, religion, origin, sex, familial status, or handicap.
1968
The majority of vacation property renters will stay from ___ to ___ days in length.
2 / 10
Leasehold is a form of land tenure. A. True B. False
A
Many property managers will not take an agreement for less than one year. A. True B. False
A
Modern leasehold estates can take one of several forms. A. True B. False
A
Property management typically involves the managing of property that is owned by another party or entity. A. True B. False
A
Some leases have early termination clauses that allow tenants to terminate the contracts under a specific set of conditions or when their landlords do not fulfill their contractual obligations. A. True B. False
A
_______ agents are authorized to conduct either only a single transaction or a specified series of transactions over a limited time.
Special
Title ____ of the Civil Rights Act of 1968, as amended, makes it illegal to discriminate due to race, color, religion, origin, sex, familial status, or handicap.
VIII
A property manager should complete a Competitive Market Analysis (CMA) on the property at least ______
annually
A large percentage of renters decide whether or not to look inside a house, or take it seriously, based on its ____ _____
curb appeal
If the owner sells the property, the property manager will _____ ___ ____
receive a payement
A property manager is someone who preserves the ______ of an investment property while generating _______ as an agent for the owners
value / income