Texas Real Estate Property Management
Rather than issuing a W-2 to a consultant, a business owner who paid a consultant for services would issue a _____ at the end of the year. 1099 W-9 W-7 EIN
1099
Buildings with an elevator and four or more units constructed after _______ must be ADA compliant. 2000 1995 1974 1991
1991
A reserve study projects replacement of building components over the next ___. 12 months 12 years 20 years 5 years
20 years
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
What should the landlord list? Any personal property being leased to the tenant The legal description of the property The owner of the property The owner's name and address YOU ANSWERED CORRECTLY
Any personal property being leased to the tenant
With regards to minimum requirements, how thick should a carpet pad be? At least 5/8" inch in thickness At least 3/16" inch in thickness At least 15/16" inch in thickness At least 9/16" inch in thickness
At least 9/16" inch in thickness
Which of the following should not be part of a job application form? Education history Medical history References Job history
Medical history
What is the purpose of a market survey? It shows the owner you are working on his property It helps you to understand the market and communicate your market knowledge to the owner It helps you stay ahead of your competition It helps identify possible new property management opportunities
It helps you to understand the market and communicate your market knowledge to the owner
What is a non-disturbance clause? It is a clause in a lease that says a tenant cannot be evicted due to a foreclosure against the property It is a lease that says the tenant must not be disruptive to other tenants It is a clause that says a landlord cannot evict a tenant Correct: False It is a clause that establishes quiet hours
It is a clause in a lease that says a tenant cannot be evicted due to a foreclosure against the property
1 of 3When a person is acting as a property manager for another party, is a license required if no fee is charged? Yes No Yes, if the other party is a relative No, if the other party is a relative
No
Which type of tenant will be most interested in the co-tenancy of the property? Office Industrial Church Retail
Retail
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
Which of these statements is true about an ITIN? Like a SSN, can be used for identification purposes It is used for tax reporting purposes only It can be used for authorization to work in the U.S. It can be used to claim Social Security benefits
It is used for tax reporting purposes only
In order for a lease to automatically renew, what is required? Language in the lease providing for automatic renewal All leases automatically renew unless the lease states otherwise A notice within 30 days of termination that the lease will automatically renew Leases cannot automatically renew
Language in the lease providing for automatic renewal
Which one is a possible source of revenue for an apartment complex? Cell phone tower Laundry facilities Percentage rent Interest on security deposits
Laundry facilities
Which organization would you turn to in order to obtain rental forms for Texas apartment housing? TAIOP TOMA TAA TAR
TAA
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
The listing agreement and the representation agreement expressly state what? That a broker does have the authority to bind the owner to an agreement. That a broker does not have the authority to bind the owner to an agreement. That the broker cannot sign any documents whatsoever. That the landlord or tenant cannot sign any documents whatsoever.
That a broker does not have the authority to bind the owner to an agreement.
Under the commercial management agreement, which of the following representations by the owner is not required? That the owner is not aware of any condition affecting the property that materially affects the health or safety of an ordinary tenant That the pool enclosure complies with the law That the owner is not aware of any environmental hazard on the property That the owner is not aware of any violation of any ordinance related to the property
That the pool enclosure complies with the law
What happens if a tenant moves in and discovers cable service is not available to the unit? The tenant can terminate the lease The tenant can get an reduction in rent The landlord must provide the cable service The tenant is out of luck
The tenant is out of luck
How are capital improvements handled on a tax return? They are depreciated. They are written off as operating expenses. They are not scheduled. None of the above.
They are depreciated.
Why should a broker display the Equal Housing Opportunity Poster in the office? To promote goodwill To avoid a fine To avoid criminal charges To comply with Federal Housing Laws
To comply with Federal Housing Laws
Which of the following would not be a primary function of a property manager? To prepare a CMA To maintain the property To establish a budget To develop reserves
To prepare a CMA
The Texas Real Estate Commission can only regulate advertising by a broker in which instance? When the broker is using his or her trade name in the ad When the ad is on a public broadcasting network To prohibit false, deceptive or misleading statements by the broker When the broker personally appears in the ad
To prohibit false, deceptive or misleading statements by the broker
What is the purpose of the capital reserve? To provide a place to keep security deposits To provide money to pay insurance premiums To provide funds for deferred maintenance To reserve units for preferred tenants
To provide funds for deferred maintenance
What is the function of the Inventory and Condition Form? To request repairs To put the parties on notice of any defects in the property A & B Neither A nor B
To put the parties on notice of any defects in the property
Which organization initiates research that anticipates emerging land use trends and issues, proposing creative solutions based on that research. ULI BOMA NAIOP IREM
ULI
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
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 When the application is approved, regardless of whether the tenant signs a lease Never, it is non-refundable None of the above
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? If the lease authorizes it Only when seizure can be accomplished without a breach of peace When the tenant has abandoned the property Never
When the tenant has abandoned the property
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 Yes, but only if he adds a bathroom No No, unless one of the bedrooms is a converted den
Yes
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 Yes, he may do so until such time as the landlord commences repairs No, he has to give the landlord the opportunity to repair No, it is only an option for the landlord to terminate
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? No, a tenant should not make structural changes. Yes, but only if a licensed contractor does the work. No, it could diminish the value of the unit. No, it would create inequality in the units.
Yes, but only if a licensed contractor does the work.
If a tenant purchases a property from the owner, the broker's fee is usually ___________. deducted from the management fee a percentage of the sales price a flat fee negated
a percentage of the sales price
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
Which of the following additional responsibilities would the property manager of a ranch have? soil management water management labor management all of the above
all of the above
What is a blog? a tweet a video an informational website a press release
an informational website
A "bump" clause is synonymous with which other clause? percentage rent holdover option to purchase escalator
escalator
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
A _________ is a promise to pay the debt of another subordination guaranty mortgage note
guaranty
What is the biggest expense in managing a resort? maintenance housekeeping security replacing household items
housekeeping
The Austin Hill case deals with ____________ landlord liability for unsafe conditions mitigation of damages tenant breach Federal Fair Housing Laws
mitigation of damages
If a landlord is guilty of retaliatory eviction, a tenant may recover______________. one month's rent one month's rent plus $500, damages, costs and attorney's fees three month's rent no damages; the penalty is jail time for the landlord
one month's rent plus $500, damages, costs and attorney's fees
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 the landlord evicts a tenant as a consequence of the tenant's reporting the landlord to the building inspector, it is called ____________. retaliatory eviction constructive eviction eviction bad faith
retaliatory eviction
Which of the following terms refers to directing a buyer away from a certain area because of race, color or national origin? blockbusting steering redlining bootlegging
steering
Which of the following items are exempt from a landlord's lien? the family television WII game a motorcycle the beds
the beds
The "Escrow Accounting Equation" requires the reconciled escrow bank account cash balance to be equal to ___________. the rent reserves the escrow account liabilities the escrow account expenses the cash on hand
the escrow account liabilities
When marketing residential properties, direct mail should be used _____________. sparingly to reach specific audiences only if approved by the TREC never
to reach specific audiences
The management agreement can be modified by ____________. oral agreement written agreement it cannot be modified the broker
written agreement
An employer must pay FUTA to workers if their wages are more than __________per year $5,000 $1,500 $2,000 $10,000
$1,500
What is the maximum amount of FDIC insurance on bank accounts? $100,000 $150,000 $200,000 $250,000
$250,000
A tenant can recover one month's rent plus $_______ from a landlord who retaliates. $500 $1,000 $5,000 0
$500
How many days grace period does a tenant get before late charges begin to accrue? 0, unless shown differently in the TAR Lease 3, unless shown differently in the TAR Lease 5, unless shown differently in the TAR Lease 30, unless shown differently in the TAR Lease
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. 30 days 5 days 1 day 3 days
1 day
Under the management agreement, how many days prior to the end of the term must notice of termination be given? 30 60 90 0
30
How long does the landlord have after the sale to mail the tenant the excess proceeds of the sale? 10 days 48 hours 5 days 30 days
30 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. 2 5 15 30
5
How much time has the landlord to provide a written explanation for delay in performance until the burden of proof shifts to him/her? 24 hours 3 days 5 days 30 days
5 days
What is the longest amount of time a landlord may delay repairs, even if he files affidavits? 3 months 2 months 6 months one year
6 months
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 Neither A nor B
A & B
What are the advantages to using a recruiter to fill positions for you? They screen the applicants. They save you time. They charge a fee. A and B
A and B
What action creates a presumption that a tenant acted in bad faith in filing a complaint to the housing authorities? The tenant's vacating the premises The landlord's repairing the item the tenant complained about A building inspector finds no violation The violation is a minor violation
A building inspector finds no violation
What is the penalty for failing to provide a written description of deductions from the security deposit in a commercial lease? A fine Damages A forfeiture of the right to withhold the security deposit in the event of damages $100
A forfeiture of the right to withhold the security deposit in the event of damages
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.
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
From a tenant relations standpoint, what should a property manager do if a tenant has not paid the rent on time? Call the tenant. Note the file. Charge a late fee. All of the above.
All of the above.
What is NOT included into Landlord Remedies? Terminate the Lease Demand payment of all past and future rent through the end of the Lease Term Obtain a security interest in Tenant's possessions Abandon the Premises
Abandon the Premises
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
Adding an air handler to the HVAC system
Which of the following is a true statement? After removal, the tenant's property becomes the landlord's After removal, the tenant's property remains the tenant's, but the landlord has a security interest in it After removal the tenant has a security interest in his property, but the landlord owns it The landlord is required to store property removed after a judicial eviction, surrender or abandonment of the 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 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
What functions would a newsletter perform in a marketing plan? Increase visibility Market services Develop leads All of the above
All of the above
What questions on a job application are good for screening candidates? Salary requirements Relocation requirements Frequent job changes All of the above
All of the above
Which of the following is included in the calculation of cash flow? Mortgage Payments Operating expenses Capital expenditures All of the above
All of the above
Which of the following would be a good source for finding new clients? Real estate developers REO departments Trade Associations All of the above
All of the above
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
Which of the following services should be performed by a contractor? Cleaning Landscaping Building assessment Both Cleaning & Landscaping
Both Cleaning & Landscaping
What is an investor's primary concern in looking at a property to purchase? Cap rate Physical condition of the property Curb appeal Resale potential
Cap rate
What does federal law prohibit landlords who lease housing built prior to 1978 to do? Provide a lead hazard information pamphlet to renters Include lead notification language in rental forms Conceal any known lead-based paint hazards Maintain records of compliance for three years
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 Injunctive relief Actual damages Punitive damages
Contempt of court
Which of the following factors is unimportant in determining the amount of rent a landlord could charge? Interest rates Location of property Condition of property Corporate entity
Corporate entity
What type of coverage includes fire, riot, vandalism, theft, glass breakage, lightning, hail, smoke and explosion? Dwelling policy Liability coverage Crime policy and fidelity bond Loss of rental income coverage
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
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
In order to obtain a contempt order against a landlord, what must the tenant first do? File a lawsuit File criminal charges File an affidavit with the justice Demonstrate non-compliance
File an affidavit with the justice
Which organization has the Accredited Resident Manager designation? IREM BOMA NAIOP ULI
IREM
Randy Renter put a security deposit down on an apartment but before the lease commenced, he changed his mind. His cousin Louise decided to take the apartment, and Peter Property Manager approved her. Peter withheld the security deposit and did not return it to Randy. Did Peter act properly? Yes, Peter is allowed to deduct any costs. No Yes, as long as it was only an administrative fee No because he should not have approved Louise
No
The landlord has a duty to repair or remedy a condition caused by: The tenant A lawful occupant in the tenant's dwelling Normal wear and tear A member of the tenant's family
Normal wear and tear
What is the amount of the fee earned on a month-to-month renewal of a tenancy? One month's rent A percentage of the rent Nothing A flat fee
Nothing
All of the following are examples of revenue on the Cash Flow Statement except CAM recoveries Base rent Property taxes Late fees
Property taxes
If an landlord knows there is lead-based paint on the property, which of the following is the landlord's duty with respect to the tenant? Remediate the lead-based paint Give a discount on the rent Provide records and reports to the tenant Allow the tenant to terminate the lease if the tenant suffers damages as a result of the lead-based paint
Provide records and reports to the tenant
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 normal wear and tear There is no duty to repair The condition was caused by a casualty loss None of the above
The condition was caused by a casualty loss
When determining whether the landlord repaired a condition within a reasonable time, all of the following will be a factor considered by the courts except? The date on which the landlord received the notice The current rental rate the tenant is paying The severity of the condition The availability of materials
The current rental rate the tenant is paying
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 Language describing the landlord's duty to repair Language informing the tenant of the requirements for notice Language telling the tenant the exceptions to the rule
The judicial remedies available to the tenant in the event the landlord fails to repair
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 The landlord gets none of the proceeds The lease will provide how the proceeds are to be apportioned Randy gets a pro rate share of the proceeds
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? None, Randy has breached the lease None if the lease has stated that the landlord has no duty to mitigate The landlord must notify Randy that the landlord is accelerating the rent The landlord must mitigate damages by trying to relet the premises
The landlord must mitigate damages by trying to relet the premises
What typically happens to the improvements at the end of a ground lease? The landlord removes them The tenant must remove them The landlord will own them The tenant keeps them
The landlord will own them
What happens if the reserve account has insufficient funds? The owner must replenish the funds to the minimum level The broker is liable The TREC can fine the owner The broker may take funds out of the trust account to replenish the reserves
The owner must replenish the funds to the minimum level
Which of the following would indicate a person is an employee rather than an independent contractor? The person receives health insurance benefits. The person is working under written contract. The work being performed is for a service to the company. The person performing the work sets his own hours.
The person receives health insurance benefits.
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