California: Real Estate Principles - Chapter 25

3 of 10 - Sam is the owner of a ten-unit apartment complex. He has just hired a new property manager to run the property. Serena, the new property manager, has been drawing up a new set of management plans for the property. What should be the deciding factor in the adoption of the new plans? A. The Owner's Objectives B. The Fair Housing Laws C. The Management Agreement D. Both A and B

D. Both A and B

7 of 10 - XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in length and have fixed rents. XYZ's contracts contain a clause in which both parties agree to annual adjustments of rent based on tax increases and other operating costs. If the previous year did not see more than a five percent increase in these costs, there is no change in the rent. What is the clause? A. Allowable Vacancy Rate Clause B. Escalator Clause C. Operating Costs Adjustment Clause D. Periodic Tenancy Clause

B. Escalator Clause

1 of 10 - How many, if any, escrow or trust accounts must a property manager maintain? A. Three - One is for security deposits; one for current rents and management; and one for maintenance funds. B. Two - One is for security deposits and one for current rents and management. C. One for security deposits. D. None of the above

B. Two - One is for security deposits and one for current rents and management.

6 of 10 - Peter has been offered the position of property manager for a large apartment complex. These apartments are upscale with impeccable maintenance programs and beautiful amenities for its residents. His contract has a clause that states, "If at any time during our agreement the property has a vacancy rate of more than 12%, our agreement is cancelled." Should this clause give Peter pause in accepting the position? Does this type of clause have a name? A. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate. B. No, Peter shouldn't worry about the clause. He needs to have faith in his abilities. The property is upscale and very desirable and shouldn't have a vacancy issue. This type of clause is an Allowable Vacancy Rate C. No, Peter shouldn't worry about the clause. There are ways to work around such a statement. If necessary, he can rent to anyone, regardless of their qualifications, to fulfill the required vacancy rate. This type of clause is a Maximum Profit Clause. D. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is a Rate of Return for Owner Clause.

A. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate.

5 of 10 - Amy suffered a spinal cord injury. She is partially paralyzed and confined to a wheel chair. She is self-sufficient in day-to-day living, has a career, and is looking for a new apartment. She decides to take a tour of Golden Gate Gables apartments. She was very happy with the two-bedroom unit and wants to put in an application for the unit. She has a special van—to accommodate her wheelchair--that requires an extra-wide disabled parking space. The Golden Gate Gables does not provide any special parking for the disabled. If Amy's application is approved for the apartment, does the apartment complex have to install a special parking spot for Amy? A. Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces. B. No, as long as Amy has received full disclosure of the absence of any special parking for her needs, if she decides to pursue the application further, that is her decision. C. No, Amy cannot expect special accommodations for herself because she decides she would like to live in the complex. It would take time and money to make the necessary changes. The complex is not obligated to make those changes for her. D. Both B and C

A. Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces.

9 of 10 - Pelican Bay Apartments is a complex consisting of 80 units. The units are available in studio and one-, two-, and three-bedroom apartments. Kimberly Bracco is the property manager of Pelican Bay. She has decided to stay in her condo and not reside at Pelican Bay. She is also pursuing her California real estate license as she manages the property. Is anything wrong with this scenario? A. No, Kimberly does not have to reside on the property she manages. Pursuing her real estate license is additionally optional. B. Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Kimberly, as an off-site manager, must hold a real estate broker license. If she decides to hire a residential manager, who lives on the property, they do not need a broker's license. C. Yes, Kimberly is required to live on-site if the complex has more than ten rental units. D. None of the above.

B. Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Kimberly, as an off-site manager, must hold a real estate broker license. If she decides to hire a residential manager, who lives on the property, they do not need a broker's license.

2 of 10 - Which of the following is not a part of a property management agreement? A. Property Description and Term of Agreement B. Definition of Responsibilities and Extent of Authority C. Americans with Disabilities Act (ADA) D. Management Fee and Allocation of Costs

C. Americans with Disabilities Act (ADA)

4 of 10 - Penny and Joe rent an apartment in the Trade Winds apartment complex. They moved in one month earlier and signed a one year lease. Today the couple received a notice stating the complex has been sold and their lease will terminate at the end of thirty days. Is this a violation? A. No, if the complex has been sold, the new owners may do with the apartments as they wish. A thirty day notice to vacate is more than sufficient. B. Yes, it is a violation. Penny and Joe must have sixty days from the sales transaction to vacate their apartment and terminate the lease. C. Yes, it is a violation. Leases do not terminate because a property is sold. D. None of the above

C. Yes, it is a violation. Leases do not terminate because a property is sold.

8 of 10 - The duties of a property manager to an owner include which of the following? A. Obtaining maximum profit on the property. B. Evaluating the Rental Market C. Handling Tenant Complaints and Conflicts D. All of the above

D. All of the above

10 of 10 - Rafe is an assistant property manager of a large residential community. He wants someday to be promoted to property manager. Rafe needs to consistently learn his duties and responsibilities to the owner and demonstrate them accordingly. What duties/responsibilities should he focus on? A. Fiduciary Responsibility to the Owner B. Achieving the Highest Rate of Return for the Owner C. Disclosure of Material Facts D. Both A and B

D. Both A and B