Leasing and Property Management
What is the main difference between a freehold estate and a non-freehold estate? Glossary Terms Estate A » A freehold estate always involves ownership B » A freehold estate ends when a life estate terminates C » A freehold estate is always inheritable D » A freehold estate is for a fixed period of time
A » A freehold estate always involves ownership
A property manager's two main objectives are to maintain the value of the property and: A » generate and produce income from the property B » minimize expenses C » avoid lawsuits for the owner D » get good tenants to occupy the space
A » generate and produce income from the property
When a tenant pays taxes and insurance in addition to normal rent, this would be called a: A » graduated lease B » percentage lease C » gross lease D » net lease
D » net lease
A property manager is contemplating renting a space to a tenant with a mental disability. The manager is worried about this tenant posing a threat to the other tenants in the building. Under federal guidelines, what should the property manager do? A » Distribute leaflets to the other tenants about the new tenant B » Inform the property owner if the manager suspects any problems C » Confer with a manager of a condominium to get another opinion D » There are no federal guidelines on this issue
B » Inform the property owner if the manager suspects any problems
What is used to describe the right of the lessor to reclaim a property once a lease expires? A » Redemption B » Reversion C » Repossession D » Reverse annuity
B » Reversion
A commercial tenant leased a commercial space from a landlord. The tenant operated a grocery store on the premises. Which of the following statements would be true if the landlord died? A » The heirs could terminate the lease B » The heirs have to honor the lease as it runs with the land C » The heirs could change the terms of the lease as new owners D » The heirs must give an automatic renewal to the tenant
B » The heirs have to honor the lease as it runs with the land
A person builds a building on ground that is leased from a land owner. Which of the following statements would be correct concerning this situation? A » This is not allowed under federal law B » When the lease expires, the land owner would own the building C » It would be easier to get financing this way rather than the land owner and building owner being the same person D » The land owner would have to notify the building owner if the land was to be sold
B » When the lease expires, the land owner would own the building
If a tenant stays over without the landlord's permission, this is called: A » estate for years B » estate at sufferance C » periodic tenancy D » tenancy at will
B » estate at sufferance
A tenant illegally stayed past the expiration date on a lease agreement. This would be called a: A » tenancy for years B » tenancy at sufferance C » tenancy at will D » periodic tenancy
B » tenancy at sufferance
The property management agreement is between the property manager and: A » his/her employees B » the property owner C » the tenants D » the lend
B » the property owner
A broker acting as a property manager usually indicates which type of agency? A » Managerial B » Special C » General D » Ostensible
C » General
A property manager generally does all EXCEPT: A » marketing B » keep records C » give legal advice D » pay taxes
C » give legal advice
A buyer was moving to a city. The buyer wanted to wait a little while and look around the city before purchasing a home. In the meantime, the buyer wanted to just rent. The best thing for this buyer would be a: A » lease option B » lease purchase C » month-to-month lease D » tenancy at sufferance
C » month-to-month lease
An agreement between a property owner and a property manager detailing the managers responsibilities in managing the property would be called a(n): A » option contract B » lease agreement C » property management agreement D » listing contract
C » property management agreement
A tenant was in possession of leased property. The landlord gave a written notice to the tenant to quit. The tenant, however, remained in the property and continued to send rent payments to the landlord. The landlord refused to accept the rent checks. This situation would be described as a: A » periodic tenancy B » tenancy at will C » tenancy at sufferance D » tenancy for years
C » tenancy at sufferance
Which of the following duties BEST describes the duty of a property manager to the owner? A » Fair B » Honest C » Accurate D » Fiduciary
D » Fiduciary
A tenant signs a three-year lease with a landlord. The landlord dies with the heirs inheriting the rental property. The heirs then sold the rental property to a new owner. The new owner would like to terminate the tenant's lease. Can the new owner do so? A » Yes, because of the death of the original landlord B » Yes, because the rental property had been sold C » No, unless the new owner gives property notice to the tenants D » No, the lease is still valid for the remainder of the term
D » No, the lease is still valid for the remainder of the term
