RE Property Management MC
Property management functions fall into four general categories:
Marketing and Financial Tenant and Occupancy Facility Management Administration & Risk Management
_______: is the duty of one party to take reasonable measures to minimize the other party's losses if the other party breaches a contract. In a lease context, it would apply if a tenant breaches a lease and vacates the premises early.
Mitigation
Why are there two versions of the Extension of Residential Lease?
One is to use for leases executed prior to October 16, 2007
In a case where a broker procures a subtenant for the lessee, any commission arrangement must be made between the sublessee, sublessor and the broker. This is accomplished via which addendum?
Commercial Sublease Addendum for Broker's Fee
Sprinkers
Commercial buildings usually have sprinkler systems
What qualification documents are NOT needed for a start-up company? Business Plan Commerical Lease Addendum Personal Guaranty Form Personal Financial Statement
Commerical Lease Addendum
What does federal law prohibit landlords who lease housing built prior to 1978 to do?
Conceal any known lead-based paint hazards
If the landlord fails to comply with a writ of restoration of a utility service, what are the consequences?
Contempt of court
A tenant may be entitled to all but which of the following remedies in the event of landlord retaliation? Criminal charges Civil penalties moving costs Attorney's fees
Criminal charges
The tenant must return the Inventory and Condition form within ____ after executing the lease.
48 hours
How much time has the landlord to provide a written explanation for delay in performance until the burden of proof shifts to him/her?
5 days
In order to be an indication of abandonment, the tenant must have been in default on the payment of rent for at least___ days.
5 days
What interest does a time share owner have in the time share unit? fee simple leasehold undivided A or B
A or B They can be fee simple OR Leasehold
What is required to establish a presumption that a tenant has abandoned equipment? Removal has occurred after hours A substantial amount of personal property has been removed A & B
A&B
What item will most likely be the most expensive equipment for the office? Copier Fax Telephones Computers
The telephone system can be a very expensive item, often the most expensive start-up item on a new business' list.
What happens to tenant on holdover situations?
The tenant becomes a tenant at will
Under which of the following circumstances would a tenant who is a member of the armed forces be permitted to terminate a lease?
The tenant is deployed for a period of over 90 days
Which statement is true of capital expenses?
They are not passed on to the tenant Capital expenses are usually excluded from tenant reimbursable expenses, because the improvements are considered to be longer term and add to the building's value far beyond the lease period.
Which of the following is NOT true about a net lease? They are usually associated with commercial tenancies The tenant pays the insurance They are usually associated with a residential lease They pass through costs to the tenant
They are usually associated with a residential lease
Randy Renter and his wife have 3 children, 10, 12, and 19. They are renting a two bedroom unit. Randy asks you if he can bring his elderly parents to live with them. Does the Property Code permit Randy to add his parents?
Yes The occupancy limits of the property code allow for the maximum number of adults (over 18) occupying a dwelling to be three times the number of bedrooms in the dwelling. Therefore a 2-bedroom unit can house 6 adults.
After a complete casualty loss of the premises, if a tenant wants to terminate the lease, may he do so?
Yes, but he must do so before the repairs are complete
Randy Renter wants to install hardwood flooring in his unit at his expense. Should you let him?
Yes, but only if a licensed contractor does the work.
Premises liability arises as a result of ________________
a landlord's failure to act
If a tenant purchases a property from the owner, the broker's fee is usually ___________.
a percentage of the sales price.
Which of the following is a true statement in the event of a death of a tenant? The landlord is not permitted to deduct anything from the security deposit for repairs prior to returning the security deposit to the designated person. Only if the deceased tenant was a sole occupant of the rental dwelling can a landlord remove and store all the deceased tenant's property The landlord must turn over possession of the property to the sheriff The landlord may keep the deceased tenant's security deposit
Only if the deceased tenant was a sole occupant of the rental dwelling can a landlord remove and store all the deceased tenant's property
Can a landlord withhold the security deposit as a penalty for a tenant not giving advance notice of surrender of a unit?
Only if the lease allows it and the condition is prominently displayed in the lease
What is a special purpose building?
Special purpose buildings include medical offices, schools, churches, recreational buildings (ice rinks, bowling alleys), etc. a shopping center is not special purpose.
What is a relocation option?
The option the landlord holds to relocate the tenant to another space of comparable size, and pay the relocation expenses.
What happens if the reserve account has insufficient funds?
The owner must replenish the funds to the minimum level
An administrative law judge may impose a penalty for up to $____ if two or more violations of Fair Housing Laws occur within 7 years
$50,000
How many days grace period does a tenant get before late charges begin to accrue?
0, unless shown differently in the TAR Lease
Landlord may terminate the tenant's right to occupy the property by providing the tenant with at least _______ written notice to vacate. Same with removal of unauthorized pet
1 day
A landlord who fails to refund an application fee is liable for 3x the amount of the application deposit plus $____
100 dollars
What is the bare minimum amount of insulation that should be installed in ceiling areas?
12 inches
Buildings with an elevator and four or more units constructed after _______ must be ADA compliant.
1991
A reserve study projects replacement of building components over the next ___.
20 years
What is the tenant's penalty for withholding payment of the last month's rent on the grounds that the security deposit is security for the last month's rent?
3 X the rent wrongfully withheld
The notice of eviction must be given _____ prior to filing the action for eviction.
3 days
What is the quickest a landlord can evict a tenant once a lease is terminated if no bond is posted?
3 weeks
Under the management agreement, how many days prior to the end of the term must notice of termination be given?
30
How long does the landlord have after the sale to mail the tenant the excess proceeds of the sale?
30 days
The landlord must mail the tenant the security deposit and an itemized accounting of deductions no later than _____ days after surrender or abandonment.
30 days
Which of the following is not a requirement for a Certified Leasing Specialist Designation? passing a written exam 5 years experience in shopping center management continuing education fulfillment 4 out of the past 6 years as a leasing specialist
5 years experience in shopping center management
What is the longest amount of time a landlord may delay repairs, even if he files affidavits?
6 months
An applicant is deemed rejected if the landlord has not given the applicant notice of acceptance within ___ days after the date the landlord accepts the application deposit.
7 days
When must a landlord rekey a security device operated by a key, card or combination after the tenant turnover date?
7 days
If after an attempted break-in, a tenant requests the landlord to repair a security device, how long does the landlord have to repair it?
72 hours
What is the optimal pool temperature?
78 degrees
Which charges are uninflated and actual?
A Reasonable Charge The term used to describe uninflated, actual charges is 'reasonable charge'. Late, trip, or bad check charges are specific penalties or expense categories.
What action creates a presumption that a tenant acted in bad faith in filing a complaint to the housing authorities?
A building inspector finds no violation
What is an administrative fee?
A fee in addition to the management fee that covers administrative expenses associated with the property An administrative fee is used to cover the costs of billing tenants, collecting rent, sending out tenant invoices, accounting and other non-maintenance related tasks.
What is the penalty for failing to provide a written description of deductions from the security deposit in a commercial lease?
A forfeiture of the right to withhold the security deposit in the event of damages
A _________ is a promise to pay the debt of another
A guaranty is a promise to pay the debt of another.
Which of the following activities would not be considered "assisting" for purposes of the RELA? A junior associate calls a client of his boss to discuss a lease negotiation. A junior associate calls a tenant with a proposal to lease space. A junior associate helps his boss to locate a corner lot for a client to lease. A junior associate collects a security deposit.
A junior associate collects a security deposit. The RELA states that a license is required for "assisting activities" that include leasing property, obtaining property, and negotiating leases. Administrative tasks such as collecting money does not require a license.
What is an escalation clause?
A lease clause that allows for set increases in rent
What is a non-disturbance clause?
A non-disturbance clause is a mortgage clause that requires that a tenant cannot be disturbed if the property faces foreclosure.
Which of the following statements is true about default under the management agreements? A party is in default when there is a breach of the agreement A party is in default when there is a breach of the agreement and the other party has given notice of default A party is in default if there is a violation of the agreement A party is in default only after breach, notice and failure to cure
A party is in default only after breach, notice and failure to cure
Subchapter D of the Property Code (Security Devices) applies to all but one of the following.
A room in an inn
The primary functions of a property manager are:
Accomplish the owner's objectives Maintain the physical integrity of the property Develop a plan for building adequate reserves for replacement Establish a budget and maintain fiscal control
After removal, what happens to tenant's property?
After removal, the tenant's property remains the tenant's, but the landlord has a security interest in it
Which of the following is an unprotected class?
Age
What must employers in Texas do who do not provide Workers' Compensation Insurance? disclose this fact to new employees by posting a sign provide written notice of non-coverage to new employees Post the notice in English and Spanish All of the above
All
Which of the following services can a guard service provide? random patrolling background checks respond to criminal activities all of the above
All
Which of the following is a true statement? The move-out date is established by the tenant The tenant may apply the security deposit to the last month's rent All occupants must surrender the apartment before the 30-days period for deposit refund begins The tenant may make a partial payment of rent if he moves out prior to the move-out date
All occupants must surrender the apartment before the 30-days period for deposit refund begins Under the TAA lease a tenant must pay all rent in full at the time of move-out, cannot apply security deposit to the rent, and all occupants must surrender the apartment before the 30-day period for deposit refund begins.
Which of the following would be a good source for finding new clients? Real estate developers REO departments Trade Associations
All of them
An employer must pay FUTA to workers if their wages are more than __________per year
An employer must pay FUTA to workers if their wages are more than $1,500 per year.
Which of the following is not required if a landlord plans to sell the seized non-exempt property of a tenant? Notice A written lease provision authorizing the sale An order from the court A 30 day waiting period after notice
An order from the court
Would a tenant or landlord insurance policy cover the damages related to this litigation?
Both the landlord and tenant's policies are likely to provide coverage for different aspects of the case.
Which of these statements is true? Any alterations a tenant wants to make to the leased premises must be approved in writing by the landlord. As long as the alterations are not structural in nature, the landlord does not have to approve tenant's plans. If the tenant installs fixtures to the walls they must remain attached when the tenant leaves. Landlord will always require that Tenant bring the premises back to its original condition
Any alterations a tenant wants to make to the leased premises must be approved in writing by the landlord.
What must the UOA repair if damaged or destroyed?
Any portion of the condominium for which insurance is required
Under what circumstances may a landlord require a tenant to pay for repairs to a security device?
Anytime the tenant causes the damage and the lease provides that the tenant must pay
What type of senior facility has limited medical assistance?
Assisted living Assisted living facilities provide meal services, housekeeping, and limited medical services as required.
Under which of the following situations would rent be highest?
At a time when banks are not lending money Typically, when the economic climate is such that people cannot borrow money with which to buy houses, the demand for rental property will increase and so will rent rates.
Which of the following is not a condition to conducting a business from a residential unit? At home business hours can only be from 9 to 5 Monday through Friday There can be no client visits Business must be conducted by computer, mail or telephone The tenant cannot use the apartment to conduct business unless it is an "at home" business
At home business hours can only be from 9 to 5 Monday through Friday
For how much time must a person be a candidate to get a CPM?
At least a year
How often must the Meetings of the association be held?
At least once a year
Which of the following services should be performed by a contractor?
Both Cleaning & Landscaping
Which of the following types of advertising can be regulated by the Texas Real Estate Commission? TV and radio ads Internet ads Bait-and-switch ads Direct mail
Bait-and-switch ads
If a property is going to be vacant for a prolonged period, which of the following steps is most important to be taken?
Boarding up a property that will be vacant for longer period will help protect it from vandalism.
BOMA: CAI: ICSC: IREM: NAA: NAIOP: SIOR: TAA: ULI:
Building Owners and Managers Association Community Associations Institute International Council of Shopping Centers Institute of Real Estate Management National Apartment Association National Association of Industrial Office Parks Society of Industrial and Office REALTORS® Texas Apartment Association Urban Land Institute (non-profit)
What must employers in Texas do who do not provide Workers' Compensation Insurance?
Business interruption insurance covers the insured against loss of income due to the suspension of business operations because of property damage.
How are management fees ultimately decided?
By the market
There are six basic elements of advertising:
Choosing the right market Knowing when to advertise Knowing the profile of the buyers in that market Advertising the right property Using the right media Using effective advertising techniques
Person's whose job is to maximize the owner's return on investment by creating an effective marketing campaign, establish rent rates, manage tenant relations, budget capital expenditures, manage risks.
CPM- Certified Property Manager
What is the property manager's primary function?
Cash flow enhancement
When would an action be deemed non-retaliatory, even if taken within six months after a tenant's complaint?
If the action is based on legal grounds
Deferred maintenance would include all except which of the following? Repair of a leaking pipe Replacing an air conditioning filter Adding an air handler to the HVAC system Preventive maintenance
Deferred maintenance is maintenance that was not performed when it should have been. Adding to an HVAC system is not regular maintenance, but expansion.
In order to do an effective market study you must
Drive the market area yourself
What type of coverage includes fire, riot, vandalism, theft, glass breakage, lightning, hail, smoke and explosion?
Dwelling policy
A broker can offset funds held on behalf of the owner for all but which of the following reasons? Compensation due to the broker Funds the broker is authorized to spend Emergency petty cash Reimbursement the broker is entitled to receive
Emergency petty cash
How often should the electrical systems be inspected by a licensed electrician?
Every 3 to 5 years
When a tenant defaults on a lease, the landlord can do all of the following except: Terminate the lease Evict the tenant immediately Demand payment of all past and future rent through the end of the lease term Seek to collect any unamortized costs of improvements made by the Landlord
Evict the tenant immediately
What is one way a broker can best protect his commission on a lease transaction?
Execute TAR Addendum2102.
In order to obtain a contempt order against a landlord, what must the tenant first do?
File an affidavit with the justice
Which of the following refers to the rules created by the Unit Owners' Association (UOA)? Arbitrary Capricious Random Fixed
Fixed
The most efficient exterior lighting is________________.
Fluorescent lighting is the most effective choice for many industrial and exterior lighting applications.
In the Sims v. Century Kiest case, what action did Sims take that resulted in the landlord's terminating his lease?
He formed a tenant's council
What kind of lights should be used to provide the best lighting?
High-intensity mercury or sodium vapor lamps provide good lighting for entryways, parking areas and garages, so that pools of shadows are avoided.
What is your best source for information on retail market data?
ICSC provides data for retail property, IREM, BOMA and Blacks guide are for office property.
Which organization focuses on the shopping center industry?
ICSC - International Council of Shopping Centers
Candidates for a CPM certification must meet the criteria established by:
IREM - Institute of Real Estate Management
Which organization has the Accredited Resident Manager designation?
IREM - Institute of Real Estate Management
If rent increases in a lease for your office space are tied to the CPI, what should you do?
If a business' rent is tied to the CPI, the tenant should try to negotiate a cap on the increase.
Each of the following is a legal basis for the landlord to prevent a tenant from entering the tenant's unit except _______. If the tenant is suspected of using drugs for bona fide repairs to remove abandoned contents to change the locks on the unit if the tenant has not paid rent
If the tenant is suspected of using drugs
What circumstances will relieve the landlord from providing an itemized list of deductions from the security deposit?
If there is no controversy concerning the amount of rent owed
On the cash flow statement what would leasing commissions be considered?
In a cash flow statement, leasing commissions are classified as an operating expense.
In order for a lien to arise, there must be _____________.
In order for a lien to arise, there must be a statutory mechanism creating it.
Which property type requires the least amount of hands-on management?
Industrial properties they are generally the easiest to manage and industrial tenants are not particularly hands-on.
In an efficiency apartment, where would the smoke detector have to be located?
Inside the main living area
What factors are important in determining the amount of rent a landlord could charge?
Interest rates Location of property Condition of property
Which of the following is true with regard to the Austin Hill case?
It allows parties in a commercial lease to provide that the landlord does not have a duty to mitigate
What is the purpose of a market survey?
It helps you to understand the market and communicate your market knowledge to the owner
When is a landlord excused from the duty of repairing a smoke detector?
It is not the landlord's duty if the tenant causes the damage
Which of the following statements is true? It is the manager's fiduciary duty to the owner to keep expenses under control It is the manager's fiduciary duty to the tenants to keep expenses under control Since expenses are a direct pass-through to the tenant and not the owner, the manager is not concerned with cost control A manager must watch expenses in order to maximize the owner's income
It is the manager's fiduciary duty to the owner to keep expenses under control
what is an ITIN?
It is used for tax reporting purposes only
Which of the following is a requirement for smoke detectors?
It must be able to detect invisible products of combustion
Which of the following is not typical for a holdover clause? It arises when a tenant refuses to leave at the end of the lease The landlord may increase the rent significantly It puts the tenant on a year to year lease term It is terminable by the landlord
It puts the tenant on a year to year lease term
Where does a tenant file for a writ of reentry?
Justice Court
In order for a lease to automatically renew, what is required?
Language in the lease providing for automatic renewal
Which of the following is not a required course in order to obtain the designation of Real Property Administrator (RPA) from the Building Owners and Managers Institute (BOMI)? Environmental Health and Safety Issues Real Estate Investment and Finance Law and Risk Management
Law and Risk Management In order to obtain RPA, the candidate must complete 7 required courses
Which one of the following is not an alternative to a Personal Guaranty? Prepaid rent An increased security deposit Leaving only the corporation on the hook A Letter of Credit
Leaving only the corporation on the hook
Which of the following is listed as a liability on the cash flow statement? Security deposits Interest Income Percentage rent Mortgage payments
Liabilities on a cash flow statement include; security deposits, bad debt reserves, capital expenses, building improvements, etc.
Which of the following properties will you probably not be asked to manage?
Licensees are rarely asked to manage special purpose buildings such as schools, government buildings, or senior living centers.
What is included in the calculation of cash flow?
Mortgage Payments Operating expenses Capital expenditures
In subsidized housing, how much of a subsidy does the tenant receive?
NONE A housing subsidy is paid directly to the landlord by the public housing authority on behalf of the tenant. The tenant receives nothing.
Under the commercial management agreement, is the representations by the owner required for that the pool enclosure complies with the law?
No, Only a residential agreement requires the owner to represent that any pool or spa and any required fences or enclosures comply with the law.
Joe Jones is an attorney who finds a tenant for a rental property for his mother. He receives no commission or other consideration for helping his mother. Does Joe need a broker's license?
No, because he received no compensation
Is a landlord protected from litigation risks if his or her tenant never requests a smoke detector?
No, because the law requires the installation of a smoke detector at the inception of a lease.
What is the amount of the fee earned on a month-to-month renewal of a tenancy?
Nothing Month-to-month renewals or extensions to leases are exempt from renewal or extension fees.
Before a tenant can terminate a lease without liability for future rent in the event of family violence, what must a tenant do?
Obtain a temporary injunction or restraining order
a type of building development with a designed grouping of varied and compatible land uses, such as housing, recreation, commercial center, and industrial parks, all within one contained development or subdivision.
Planned Unit Development: (PUD)
How is effective gross rent calculated?
Potential gross rent - vacancy and credit loss + additional secondary income = effective gross rent.
Which of the following would not be a component of a building assessment? Profit and loss statement Preventive maintenance program Deferred maintenance program Capital forecast
Profit and loss statement A profit and loss statement is a summary of the financial performance of a business over time and has nothing to do with a building assessment.
TAR Addendum 2112, Tenant's Construction Addendum, does what?
Provides a detailed checklist, accountabilities and things the tenant must do to be granted permission to perform work in the space. Addendum 2112 defines exactly what a tenant and his or her contractors must do before commencing construction within a leased premises.
What is the first thing you should do when starting a property management business?
Put together a business plan
The NAA is an advocate for _______________
Quality rental housing
What should a landlord do if it becomes necessary to reduce rent to fill vacancies?
Reduce the length of lease terms Lowering rent helps to fill vacancies, but to protect against a change in the market that would support higher rent, the owner should provide shorter-term leases so the owner is not locked into the lower rent for a long period.
What does Addendum 2103 not cover reimbursement for? Rent maintanance taxes insurance
Rent
Which is true regarding rental rates in a shopping center?
Rent per square foot can vary widely between tenants.
Which of the following may be put into an operating account? Security deposit Guest deposit Rental application fees Advanced fee contracts
Rental application fees Funds in an operating account are funds the property manager has earned
When a property manager has funds in an account designed to pay for emergency items, the account is known as a ________.
Reserve
Which type of tenant will be most interested in the co-tenancy of the property?
Retail tenants are interested in the co-tenants of a property, for reasons of competition and of the ability to draw customers.
What is it called when Owners of property will likely perform an analysis of the improvement to decide whether the improvement will be a good financially?
Return on Investment: (ROI)
All of the following are examples of revenue on the Cash Flow Statement except CAM recoveries Base rent Property taxes Late fees
Revenues on a cash flow statement are any incoming streams of money. Property taxes are an expense not an income.
Which of the following would probably not be on the Property Inspection checklist? General cleanliness Roof inspection Storefront glass Landscaping
Roof inspection
Advisory Services Specialists, Executive Specialists, Industrial Specialists, Office Specialists, and Sales Management Specialists would be members of _______
SIOR - Society of Industrial and Office REALTORS
In a gross sales calculation from a percentage lease, which of the following would not be included in the calculation? Sales from a tenant's satellite office Sales from a kiosk within the tenant's leased premises Sales made by phone to the tenant's store Sales occurring as a result of a phone call to the tenant's store
Sales from a tenant's satellite office
Why do leases require the landlord's permission prior to the tenant's subletting the property?
So the landlord can qualify the subtenant A landlord will want to prequalify a prospective sub-lessee before allowing him or her to assume an existing lease.
What is the number one marketing tool for businesses?
Social Network
Which organization would you turn to in order to obtain rental forms for Texas apartment housing?
TAA- Texas Apartment Association
Chapter 92 defines "dwelling" to exclude which of the following? Leases to more than one tenant Temporary living space Individual rooms Permanent residences
Temporary living space Dwelling = permanent
Which of the following is not a freehold estate? Fee Simple Fee Tail Tenancy at Will Life Estate
Tenancy at Will The four types of freehold are; fee simple, fee defeasible, life estate, and fee tail.
The Austin Hill case deals with ____________
The Austin Hill case deals with mitigation of damages.
What could the rent increase be tied to?
The Consumer Price Index (CPI)
Who enforces the Equal Credit Opportunity Act?
The Federal Trade Commission
What is the component of the business plan that includes staffing, startup budget, and sales forecasts?
The Financial Plans
What is the name of a federal law that applies to safety and health in the workplace, including the workplaces of property management?
The Occupational Safety and Health Act (OSHA)
Regulation Z is which of the following?
The Truth in Lending Act
What language must be included in the lease in boldface type and all capitals with regard to the landlord's duty to repair?
The judicial remedies available to the tenant in the event the landlord fails to repair
In a shopping center the manager is responsible for all except
The interior tenant spaces A shopping center manager is responsible for exterior maintenance, trash disposal, common areas and parking lots, but the tenants maintain their own interior spaces
With regards to minimum requirements, how thick should a carpet pad be?
The carpet pad should be at least 9/16" inch in thickness and should be made of recycled foam chunks.
Which of the following is an exception to the rule that the tenant has a cause of action against a landlord who fails to repair within a reasonable time after a tenant request to repair?
The condition was caused by a casualty loss
The landlord has 30 days from ____________to refund the security deposit
The date the tenant surrenders the premises and provides a forwarding address
A house Randy Renter is leasing burns down. Randy has made improvements to the property, including adding hardwood floors, with the landlord's permission. How are the insurance proceeds apportioned?
The landlord gets all the proceeds
Randy Renter moves out in the middle of the night, leaving the landlord without a tenant. Randy leaves the landlord the rent due through the day of vacating. What duty does the landlord owe Randy?
The landlord must mitigate damages by trying to relet the premises
If the landlord delays making a repair after delivering the first affidavit for delay to the tenant, what are the legal consequences?
The landlord will have the burden of proving good faith for subsequent delays
What typically happens to the improvements at the end of a ground lease?
The landlord will own them
Which of the following is the right description of a triple net lease? The landlord will want to put a rent increase in the lease for each renewal term. The landlord will pass through to the tenants of the building the landlord's insurance, taxes and operating expenses for the common area. The landlord can charge a tenant or seek reimbursement from a tenant for a fine imposed by the government. The landlord is allowed to remove and store any property of a tenant that remains on premises that are abandoned.
The landlord will pass through to the tenants of the building the landlord's insurance, taxes and operating expenses for the common area.
What happens if the tenant does not sign a lease extension?
The lease will renew on a month-to-month basis
The listing agreement and the representation agreement expressly state what?
The listing agreement and the representation agreement expressly state that a broker does NOT have the authority to bind the owner to an agreement.
If there is a person who works for both the property owner and the property manager, what document defines whose employee the person is?
The management agreement
Which of the following powers is not given to a commercial property manager? The power to lease property The power to put a lockbox on the property The power to show property to prospective tenants The power to collect rents
The power to put a lockbox on the property
What items are exempt from a landlord's lien?
There are several items that are exempt from a residential landlord's lien. These include; clothing, schoolbooks, beds and bedding, and food.
Which of the following is a true statement? There can never be negligence without liability There can never be liability without proximate cause There can never be proximate cause without negligence There can never be injury without proximate cause
There can never be liability without proximate cause
In Texas, what is the maximum amount a landlord may charge for a security deposit?
There is no amount set in Texas
How are capital improvements handled on a tax return?
They are depreciated. Repairs can be written off 100% as an operating expense, but capital improvements are written off through a depreciation schedule.
Which of the following is correct regarding the commencement and occupancy date?
They may not be the same date.
Which of the following is the seller not obligated to perform in reference to Lead-Based paint disclosure according to HUD regulations?
To guarantee the property has no lead-based paint or lead-based paint hazards
What is the purpose of using a Visitor Rating Form?
To obtain the visitor's contact information for future follow-up
What is the purpose of the capital reserve?
To provide funds for deferred maintenance
What is the function of the Inventory and Condition Form?
To put the parties on notice of any defects in the property
Which of the following situations do not require an ATTEMPT to contact the tenant prior to landlord's entering the premises? To show the property to an insurance agent To let an appraiser in To survey the property To let a fire marshal in
To survey the property A landlord may access a property at reasonable times without first attempting to contact the tenant and without notice in order to; survey the property, make emergency repairs, exercise a lien, leave written notices, or seize nonexempt property if the tenant is in default.
How often should the parking-garage surfaces be cleaned?
Twice a year / every 6 months
Which organization initiates research that anticipates emerging land use trends and issues, proposing creative solutions based on that research.
ULI - Urban Land Institute
Which of the following statements is true? Under the commercial management agreement either the broker or the owner can terminate at anytime upon 30 days notice. Under the residential management agreement either the broker or the owner can terminate at any time upon 30 days notice Under the commercial management agreement, the broker may terminate for any reason Under the residential management agreement, the broker may terminate for any reason
Under the residential management agreement, the broker may terminate for any reason
Which statement is true regarding a tenant holdover?
Unless an agreement can be reached, the tenant will be required to pay holdover rent at 1.5 times the face rent from the time the holdover begins.
When can a Tenant change its use in a retail center?
When the Landlord grants a request to do so in writing.
If a tenant places a deposit on a property to hold it while the application is being processed and signs the Agreement for Application Deposit and Hold, when is the deposit refunded?
When the application is approved and the tenant signs the lease
Under what circumstances may a landlord remove the contents of the premises from exempt property?
When the tenant has abandoned the property
Chapter 82 of the Texas Property Code applies to which of the following? residential condominiums office condominiums commercial condominiums all of the above
all of the above
What functions would a newsletter perform in a marketing plan? Increase visibility Market services Develop leads All of the above
all of them
A landlord who does not provide a written description of damages when deducting from the security deposit is liable for_______
attorney's fees.
What kind of policy compensates the insured for lost income while repairs are made to the property?
business interruption
In the NFPA study cited, cigarettes were found to be the leading cause of home fire deaths, but what was found to the leading cause of most types of home fires?
cooking equipment
In risk management the property manager balances the desired result with the _________
cost of management
Which of the following remedies is not available to a tenant in a lawsuit against the landlord for failing to repair a security device within the proper timeframes?
criminal charges
Under the TAA lease, the landlord must use_______________ to relet the premises if the tenant moves out early.
customary diligence
Before disposing of abandoned property, what must a landlord do?
deliver a notice to the tenant by certified mail
Uniform Electronic Transaction Act: was passed in 1999 by the NCCUSL. This law made __________ possible.
digital signing
Contractors for residential contracts must deliver a ____________ to the Owner prior to executing the contract.
disclosure statement
In what form should the tenant give a notice to the landlord about a problem in the rental unit that needs to be repaired?
does not have to be in writting
What part of an insurance policy modifies the standard policy provisions?
endorsements Insurance policies contain the standard policy provisions and the individualized endorsements that modify those standard policy provisions.
If you hire someone as an employee, you must pay all but which of the following? social security tax Medicare tax unemployment tax excise tax
excise tax
An "all risk" insurance policy covers all perils except ________
excluded perils
What is used to slow down the spread of fire?
fire doors
What is the biggest expense in managing a resort?
housekeeping
A way to reduce insurance premiums would be to _______
increase deductibles
Who is responsible for the smoke detectors in public gathering areas?
landlord
What is the largest component of a commercial building's electricity bill?
lighting
A tenant can recover one month's rent plus $_______ from a landlord who retaliates.
one month's rent plus $500, damages, costs and attorney's fees
To which of the following would a mechanic's lien not attach?
personal property
If a landlord has parking rules for a property, he must do all of the following except ___________. have the tenant sign a copy of the rules include a copy of the rules in the lease agreement signed by the tenant provide a copy to the tenant upon move-in provide a copy to the tenant before the lease is signed
provide a copy to the tenant upon move-in
The EPA recommends that residential properties use _______ for lighting.
qualified compact fluorescent
Which of the following is the landlord's responsibility? replace lost keys replace broken security devices remove standing water change air conditioning filters
replace broken security devices
If a tenant recovers property a landlord has seized, it is called _________.
replevy
Risk can be managed by avoidance, reduction, sharing and ____________
retention
What is the most important thing to do when implementing a marketing plan?
stay with the plan long enough for it to work
Which of the following terms refers to directing a buyer away from a certain area because of race, color or national origin?
steering
The primary issues with managing single-family residence are maintenance and _________________
tenant qualification
The "Escrow Accounting Equation" requires the reconciled escrow bank account cash balance to be equal to ___________.
the escrow account liabilities
All of the following are required disclosures under Chapter 92 except ___________. the name of the owner of the property being rented the address of the owner of the property being rented the name of the management company if the office is off-site from the rental unit the name of the owner of the management company
the name of the owner of the management company
Comprehensive general insurance policies do not cover damage related to ___________
the operation of automobiles
The priority of liens depends upon ____________.
the order in which they arise
Randy Renter took possession of a rental unit from Joe Jones, who was a holdover tenant under a lease. The landlord has a cause of action against Joe for __________
unlawful detainer
When does the ADA apply to residential real estate?
when it's a multifamily residential
Must a landlord permit someone with a handicap to install grab bars in a bathroom?
yes, if the tenant returns the unit to its original condition upon vacating
