Property Management
An unlicensed employee of the owner of a multiunit rental property or an unlicensed individual who works under the supervision of a licensee is permitted to perform only the following duties:
(1) maintenance; (2) clerical or administrative support; (3) collection of rents that are made payable to the owner or real estate company; (4) showing rental units to prospective tenants; (5) furnishing published information; (6) providing applications and lease forms; and (7) receiving applications and leases for submission to the owner or the licensee for approval.
According to Trust account regulations, all records including deposits and receipts must be held for a minimum of
5 years
Creed/Religion
A formal statement of religious belief; a confession of faith.
Race
A person's race or the race of persons with whom one associates.
Sex
A person's sex, including sexual harassment or intimidation.
Color
A person's skin color.
Disability/Handicap
A physical or mental impairment which substantially limits one or more major life activities.
The physical ouster of a tenant from the leased premises is
Actual eviction
Discriminatory advertising
Advertising or making any statement which indicates directly or indirectly an intent to make a limitation, specification, or to discriminate with respect to members of one of the protected categories.
The Landlord is to maintain the premise in all of these ways EXCEPT
Allow tenant to make repairs
According to the SC Vacation Rental Act failure to disclose vacation rental agreement to purchaser will does all of the following EXCEPT
Allow the rental management company to put the monies collected into the operating account
Determining the disposition of the non-freehold estate allows the Owner to
Allows the right to sell, lease or assign
As a licensed PMIC, you may place your funds received in any of the following accounts as required by License Law EXCEPT
An account not having 'trust' or 'escrow' in the title
A vacation applies to all of the following EXCEPT
Any time share accommodation
Redlining
Being denied or subjected to stricter conditions in applying for a loan on property in a particular area because of the racial composition of the area, including loans to purchase, construct, improve, repair, or maintain housing.
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood.
Blockbusting
In determining profitability for a property, when cost and revenue are equal, and no loss or gain was established it is known as
Break even
The tenant may use and occupy the dwelling unit in all of the following ways EXCEPT
Can alter the premise without permission from the landlord
If there is a noncompliance by the tenant materially affecting health and safety the landlord can
Can terminate the rental agreement within 14 days if the breach is not remedied
A tenant has the obligation to maintain the dwelling unit with regard to the following EXCEPT
Change locks on the dwelling unit without permission from the landlord
We should seek to carry out our duties in a fair, equitable and consistent manner. Housing Services have adopted internal procedures and review systems to promote consistency. Where possible property managers should also adopt risk based rating systems to guide the pro-active enforcement of Housing Standards.
Consistency of policies
Advertising or making any statement which indicates directly or indirectly an intent to make a limitation, specification, or to discriminate with respect to members of one of the protected categories.
Discriminatory advertising
The tenant must maintain the dwelling unit by
Disposing of waste in a reasonable and safe manner
A court action to recover real property from a delinquent tenant is known as
Ejectment
The purpose of the SC Landlord and Tenant Act is to
Encourage landlords to enforce rules and regulations
A property manager can maintain personal funds in the trust account to offset any bank service fees as long as the amount is clearly identified in the amount of
Enough to keep the account open and cover bank service charges
Business liability insurance for professionals such as insurance agents, real estate agents and brokers, architects, third party administrators and other business professionals. Covers a mistake, which causes financial harm to another, can occur on almost any transaction in any profession. This type of insurance helps to protect a professional, an individual or a company, from bearing the full cost of defense for lawsuits relating to a mistake in providing covered Professional Services. This is a separate coverage from a standard general liability or property insurance policy.
Errors and Omissions
1) Identification of the parties - Parties to a management agreement will always be the Property Manager-in-charge (PMIC) and the property owner. 2) Contract period - must have a definite start and end date 3) Manager's responsibilities - Monthly reports and disbursements - Powers for renting, operating, and managing 4) Owners responsibilities
Essential Elements of Management Agreements
The leasehold estate that is favored by property managers is
Estate for years
Act that recognizes protected classes rendering it illegal to discriminate in the sale, rental or financing of housing. Those protected classes are race, color, religion, national origin, sex, familial status, or handicap.
Fair Housing Act
The actual periodic rental payment for comparable rental property agreed upon by a willing landlord and tenant is
Fair market rental value
Familial Status
Family with at least one member who is younger than 18, a pregnant woman or a family who has or is obtaining custody of children.
Commissions are always negotiable. Agents may never say or do anything that would suggest the commission is set. A set commission is considered price fixing which is a violation of the Federal Anti-Trust Laws (Sherman and Clayton Acts). Other violations of Antitrust Laws include Allocation of Markets, Allocation of Customers, Bid rigging and Tie-in Agreements. Penalties for Violations Penalties for violating anti-trust laws could include loss of license, fine of up to $5,000 and/or imprisonment for up to six months.
Federal Anti-Trust Laws
Illegal Discriminations
Federal and state fair housing laws make it illegal to discriminate in housing based on the following protected classes: Race, Creed/Religion, Color, Sex, National Origin, Familial Status, Disability/Handicap
1) Obedience 2) Loyalty 3) Disclosure 4) Care, Knowledge and Due Diligence 5) Accounting 6) Confidentiality
Fiduciary Responsibilities
The Federal Fair Housing Laws are enforced HUD are
Filed within one year of discrimination and up to two years to file in court.
Disclosure is important in Landlord Tenant Law because
For purposes of service of process, receiving notice or demands
any licensee licensed under the Property Manager-in-Charge or Broker-in-Charge, also referred to as sub- agents.
General Agent
Before ratification of a lease, Landlords must comply with the Residential Lead-Based Paint Act by doing all of the following EXCEPT
Give the EPA-approved pamphlet to the Lessor
If the tenant is noncompliant with the rental agreement (other than rent) the landlord must notify the tenant in writing by
Giving the landlord 14 days to remedy the issue
Retaliatory conduct by the Landlord is prohibited EXCEPT
If the landlord refuses to renew and tenant is not in default the landlord may not recover possession of the premise for 75 days
Disciplinary Actions can be taken by the SC Real Estate Commission
If the licensee fails to report to the department within 10 days of conviction of a crime
The management plan includes all of the following EXCEPT
Insure the owner's objectives are met by assuring a positive cash flow
Trying to limit the benefits of renting or buying housing in an area because the person is a member of one of the protected categories.
Interference, coercion, or intimidation
A regional market analysis differs from a neighborhood market analysis in all of the following ways EXCEPT
It does not access the highest and best use for the property
On September 2, 1965, the petitioners filed a complaint in the District Court for the Eastern District of Missouri, alleging that the respondents had refused to sell them a home in the Paddock Woods community of St. Louis County for the sole reason that petitioner Joseph Lee Jones is a Negro. The courts declared that the Civil Rights Act of 1866 prohibits all racial discrimination in the sale and rental of real property. Although there are exemptions to discrimination, under no circumstances can one discriminate based on race.
Jones vs. Mayer (Supreme Court Decision of 1968)
The Civil Rights Act of 1866 reaffirmed:
Jones vs. Mayer regarding all racial discrimination
A licensed Property Manager can do all of the following EXCEPT
Maintain the escrow account
When your license is revoked by the SC Real Estate Commission a person may not reapply
May not reapply for 3 years
Mrs. Laughsalot has rented a property and is paying the taxes, insurance and maintenance costs above her base rent. Which type of lease has she signed
Net lease
A property management company has an income of $30,000.00 and expenses of $16,000.00. The remaining $14,000.00 is
Net operating income
The Fair Housing Act does not cover Owner-Occupied dwellings designed for occupancy
No more than 4 families living independently of each other
According to the SC Vacation Rental Act if the rental begins after the recording of the grantee's interest
No party has the right to enforce the terms if the agreement begins after 90 days
The Divendorffs rented a house in SueMe Village Apartments. The Associated Licensee did not tell them a sex offender lived in the apartment above them until after they moved in. The Property Manager was in violation of
Nothing, the property manager referred them to the local sheriff's department
In the event the dwelling unit is damaged or destroyed by fire the tenant may
Notify the landlord in writing within 7 days of intention to terminate the rental agreement
A type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not.
Office and floater
The type of insurance coverage for the Owner that covers property that is easily movable and provides additional coverage over the normal policy is
Office and floater
Exemptions of the SC Landlord Tenant Law include all of the following EXCEPT
Owner of condo or cooperative proprietary lease
The most common period for this type tenancy is month to month or for any term agreed by parties and is a (an)
Periodic Tenancy
The Federal Fair Housing Law includes all the protected classes EXCEPT
Persons 62 years of age or older
A property manager initiated a program of regularly scheduled maintenance activities where both interior and exterior of the premises are routinely inspected. Such a program is called
Preventive maintenance
A fiduciary responsibility of confidentiality, care, knowledge, due diligence, obedience, accounting, loyalty and disclosure under the agency relationship is owed to the
Principal
the property owner identified in the management agreement.
Principal
Illegal Discriminations
Race, Creed/Religion, Color, sex, National Origin, Familial Status, Disability/Handicap
Being denied or subjected to stricter conditions in applying for a loan on property in a particular area because of the racial composition of the area, including loans to purchase, construct, improve, repair, or maintain housing.
Redlining
In absence of an agreement to the rental amount between the parties
Rent will be the market rent for that area
A licensed property manager-in-charge or broker-in- charge and their associates and employees who manage vacation rentals.
Rental management company
An apartment, condominium, single family home, townhouse, cottage, or other property devoted to residential use or occupancy by one or more persons for a definite or indefinite period.
Residential property
This type of determining profitability that measures and evaluates an investment or to compare the efficiency of a number of different investments is known as
Return on Investment
The landlord may consider a property abandoned after 15 days and can do all of the following EXCEPT
Set the tenants personal property out on the street on day 14
The South Carolina Real Estate Commission consists of members elected or appointed as follows
Seven members engaged in the active practice of real estate
All of the following may be required by the American with Disabilities act EXCEPT
Someone to assist a person in a wheelchair in the restroom
the Property Manager-in-Charge or Broker-in- Charge hired to represent the owner is the special agent.
Special Agent
A practice whereby a real estate agent makes a practice of showing white clients homes in predominantly white neighborhoods and minority client's homes in predominantly non-white neighborhoods.
Steering
(A) Applies to any rental management co. acting on behalf of an owner or to any other persons/entities otherwise engaged in the renting or managing of residential property for vacation rental as defined. (B) This article does NOT apply to: (1) Hotels, Motels, Tourist Camps, or Campgrounds subject to regulation under Title 45, including hotels, motels, or condominiums with multiple owners owning and managing individual units or groups of units that rent units on a daily basis or longer, and provide a front desk or office for customer service, or provide a centralized telephone system, or provide housekeeping services at no additional charge; (2) Timeshares as defined by Section 27-32-10(7) and (8); or (3) Rental of residential property on a weekly or monthly basis pursuant to Chapter 40.
THE SOUTH CAROLINA VACATION RENTAL ACT
Management fees can be determined by all of the following EXCEPT
Take a set commission of the gross profit and loss
If the landlord fails to deliver possession of the dwelling unit to the tenant, until possession is delivered the tenant may
Terminate the rental agreement with 5 days written notice
states, "that all persons born in the United States and not subject to any foreign power, excluding Indians not taxed, are hereby declared to be citizens of the United States; and such citizens, of every race and color, without regard to any previous condition of slavery or involuntary servitude, except as a punishment for a crime whereof the party shall have been duly convicted, shall have the same right, in every State and Territory in the United States, to make and enforce contracts, to sue, be parties, and give evidence, to inherit, purchase, lease, sell, hold, and convey real and personal property, and to full and equal benefit of the laws and proceedings for the security of person and property, as is enjoyed by white citizens, and shall be subject to like punishment, pains, and penalties, and to none other, any law, statute, ordinance, regulation, or custom, to the contrary notwithstanding. "
The Civil Rights Act of 1866
The Federal law that regulates the collection, dissemination, and use of consumer information is
The Fair Credit Reporting Act
A tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit under the following circumstances EXCEPT
The Landlord must give the tenant 24 hour written notice prior to entry
The Property Manager for LosesALot Apartment Community needed funds in her general business account that were held in Trust. She made the transaction
The Property Manager is guilty of the illegal act of conversion
National Origin
The country of one's birth and/or nationality of one's ancestors.
John Geterdone filed a federal lawsuit for actual damages as well as punitive damages of $10,000 because the ECOA notified him on the 93rd day of his submitting a credit application to StealAway Furniture Company. He may because
The furniture company did not notify him within the required time by law
Blockbusting
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood.
Judy Lucas, the PMIC of StayHere Apartments shopped other properties to determine her rental rates. She called her neighboring apartment community and the two of them decided to raise rates at the same time. This might be an example of
The illegal practice of price-fixing
You co-own rental property with your Sister, who is unlicensed, and you manage it. You place the security deposits and pet deposits in your operating account
The money could have been placed in the escrow account
Any deduction from the Security Deposit must be itemized and returned to the tenant within 30 days in accordance with the SC Landlord and Tenant Act
The tenant may recover prepaid rent and security deposit if landlord fails to return these monies
Bill Paysontime went out of town and paid 6 months advanced rent. The PMIC placed the full amount in the operating account
This was incorrect as the balance remains in the trust account until it is due
Interference, coercion, or intimidation
Trying to limit the benefits of renting or buying housing in an area because the person is a member of one of the protected categories. This includes trying to coerce, threaten, intimidate, retaliate against, or interfere in any way with the use and enjoyment of housing.
The magistrate court may refuse to enforce the rental agreement based on
Unconscionability
Rules and regulations concerning the tenants use and occupancy of the tenant are only enforceable
Unless the tenant objects in writing to the landlord within 30 days after it is put into effect
The lease, sublease, or other rental of residential property for a period of fewer than ninety days, except that it does not include rental of residential property on a weekly or monthly basis pursuant to Chapter 40
Vacation rental
A written agreement between an owner or the owner's rental management company and a tenant, in which the tenant rents residential property belonging to the owner for a vacation rental. This definition includes electronically transmitted agreements, including, but not limited to, agreements entered into over the Internet and electronic facsimiles.
Vacation rental agreement
A written agreement between an owner or the owner's rental management company and a tenant, in which the tenant rents residential property belonging to the owner for a vacation rental. This definition includes electronically transmitted agreements, including, but not limited to, agreements entered into over the Internet and electronic facsimiles.
Vacation rental management agreement
The effect of an unsigned rental agreement according to SC Landlord Tenant Law is enforceable
When rent is paid and Landlord accepts rent, the lease is enforceable
The property manager for Southwest Apartments receives a lead regarding a 2 bedroom apartment. You indicate you have several vacancies but when the appointment holds and they appear on site, they are an interracial married couple and you tell them the apartments have been rented
You are practicing blockbusting
Steering
a practice whereby a real estate agent makes a practice of showing white clients homes in predominantly white neighborhoods and minority client's homes in predominantly non-white neighborhoods.
