Unit 7 Exam: Property MAnagement

Violations for not complying with the Do-Not-Call Registry include penalties up to ____

$18,926

What is a latent defect?

A defect that is not ordinarily discovered by a general inspection

The owner is obligated to provide ____for his or her tenants.

A safe and secure environment

A sublease is ____.

A second lease between the original tenant and a new tenant

All personnel should remember ____________. 1. that property can be replaced 2. to not place themselves at risk 3. steps can be taken without risk or injury 4. All of the above

All of the above

The following statements are all true EXCEPT ____. 1. The size and nature of a project will dictate the responsibilities of a property manager 2. Keeping an eye on 2 single-family homes will take less time than a 200-unit apartment complex 3. Many responsibilities will be common to most property management situations 4. All property managers will have the same daily tasks and responsibilities

All property managers will have the same daily tasks and responsibilities

Your agreement with the owner will not include ____.

An agreement with the owner to have the ability to put client's money in your personal bank account to compensate you for your extra work

A child was injured when he fell through the floor in an abandoned house. If the owner was held liable for the injury, the house was probably considered to be ____.

An attractive nuisance

Monthly statements will include all of the following EXCEPT ____. 1. Income from rent 2. Security deposits 3. Income from vending machines 4. Annual debt service

Annual debt service

The following is not a good quality for a property manager ____. 1. He or she must have the ability to successfully juggle a variety of tasks without losing focus 2. Handling large sums of money for many different people honestly 3. Becoming emotionally involved, or lying awake at night worrying about the problems and tribulations of tenants 4. The ability to see a potential problem area and suggest possible solutions to ownership

Becoming emotionally involved, or lying awake at night worrying about the problems and tribulations of tenants

As population growth continues, ____ is an important issue for all property owners. 1. Water conservation 2. Energy conservation 3. Poverty 4. Both #1 and #2 are correct

Both #1 and #2 are correct

A best practice recommendation to a real estate licensee would include ____.1. disclose all known defects in writing 2. recommend only their favorite home inspector 3. encourage all inspections 4. Both 1 and 3 are correct

Both 1 and 3 are correct

The owner will require ____ to compare the current year's operations with prior years.

Comparative statements

If you are starting your management career with an existing management company, or with a landlord who owns several properties, the following are all true EXCEPT ____. 1. There will almost certainly be a record-keeping system in place 2. Your job will be to learn the system and comply with its requirements 3. There are many programs that can help you get organized 4. Computer skills are not necessary

Computer skills are not necessary

If your home is destroyed by fire, and you have comprehensive homeowner's insurance, the insurance company ____.

Does not owe you for the value of the land but may owe you the total cost of replacement of the home

Which of the following is not true of a management company hiring its own employees to do almost all of its maintenance is ____. 1. Employees do not receive Social Security contributions or health insurance 2. There is more control over employee performance 3. Employees may have more interest in doing a better job 4. Mangers have control over firing and hiring

Employees do not receive Social Security contributions or health insurance

Leases ____.

Expire and renew per the terms of the lease

If you break your lease by leaving early, the landlord has the option of just keeping your security deposit for rent owed instead of re-renting your apartment. Is this true or false?

False

Home buyer's insurance will most likely not cover which of the following events?

Faulty workmanship in the building of a new home

You have the right to buy a property that has not yet been listed for sale if the owner decides to sell. You have a ____.

First right of refusal

The type of lease where the landlord pays all expenses of operation and maintenance, is called a(n) ____.

Gross lease

Potential employers for property managers include all of the following EXCEPT ____. 1. Property owners and apartment complex owner 2. Corporations and partnerships in the real estate business 3. Independent management firms 4. Home Builders

Home builders

A tenant vacated the premises with nine months remaining on the lease. To mitigate damages, the owner should ____.

Immediately advertise the premises for rent

If you want to have your homeowner's hazard insurance coverage increase automatically, to account for the disparity caused by inflation, you would have to have an ____.

Inflation guard endorsement

Which of the following statements regarding security deposits is TRUE? 1. The security deposit funds belong to the lessor. 2. The security deposit can be used for normal wear and tear. 3. Interest earned on the security deposit belongs to the lessee. 4. The security deposit can be used for rent for the last month of the lease.

Interest earned on the security deposit belongs to the lessee

When preparing information for ownership, their accountants or lawyers, ____.

It is far better to provide too much information than too little

When advertising a property for tenants to live in an apartment building, ____.

It is not a good idea to advertise security features

Property repair is performed by ____.

It will depend on the size of the project

Best practices for property mangers include all of these EXCEPT ____. 1. Treat everyone the same 2. Everyone is offered the same terms 3. Be truthful in what you tell a potential tenant. 4. It's ok to make promises even if you are not 100% sure

It's ok to make promises even if you are not 100% sure

An example of constructive eviction would be a ____.

Landlord cutting off the tenant's heat and water

To help keep the property safe, ____ is one of the most important areas to looks at.

Lighting

Joe owns a large apartment complex. He will save money by ____.

Maintaining the sprinkler system as issues arise

A property manager has a chance for a management contract for a large commercial building that has been vacant for 2 years. The manager should insist upon a ____.

Minimum fee

Operational guidelines are ____ than Landlord policies.

More specific

If the tenant pays the rent or fixes the lease violation in the 3-day period, the landlord ____.

Must accept it and cannot evict the tenant

Breach of Warranty of Habitability by the landlord does not include ____.

Noisy neighbors

A domestic dispute between apartment tenants breaks out. You should ____.

Notify the proper authorities (local police)

A lease for a commercial property, in which a tenant agrees to pay $5,000.00 per month plus 4% of the gross monthly sales, is called a .

Percentage lease

Maintenance and repair by the property manager includes all of these EXCEPT ____. 1. Daily, weekly, monthly, and annual cleaning 2. Paint touch ups, as well as annual or biannual painting 3. Roofing and plumbing 4. Private owners hot tub

Private owners hot tub

In most states, which one of the following would a buyer need to view before entering into a contract with a seller? 1. the chain of title 2. pin stake survey 3. home inspection report 4. property condition disclosure

Property condition disclosure

Establishing the rent schedule, advertising the space, collecting rents, and qualifying and investigating tenant's credit are normally the responsibility of the ____.

Property manager

A tenant has the right to meet the terms offered by any prospective new tenant when the current lease expires. What is this right called?

Right of first refusal

____ is an example of what is NOT included in an operational guideline.

Roof replacement

Regarding repairs requested to be made by the landlord, the tenant ____.

Should provide written notice to the landlord

Radon is naturally occurring and is produced in many different types of soils and rocks. Which of the following statements regarding radon is FALSE? 1. Since Radon comes from the soil, it is only a problem in the basement of a home. 2. It is chemically inactive. 3. It can build up and become a health concern, by increasing the likelihood of developing lung cancer. 4. Radon is measured in units of pico curies.

Since Radon comes from the soil, is it only a problem in the basement of a home.

A lease that has a fixed rent with increases at certain intervals, is known as a(n) ____.

Step-up lease

Partial lease interests were transferred by a lessee. This is a(n) ____.

Sublease

An example of occupancy without any underlying agreement is ____.

Tenancy at sufferance

A lease for an unspecified period of time is known as a ____.

Tenancy at will

Which of the following statements regarding Federal Lead-Based Paint law is INCORRECT?

Testing is required for the presence of lead-based paint

Which of the following statements is INCORRECT regarding the treatment of real estate salespeople as independent contractors per IRS regulations?

The employing broker will withhold income taxes.

The landlord has no responsibility to repair the rental property if ____.

The lease says the tenant will do it

A lease can terminate for all of the following reasons EXCEPT ____. 1. Merger 2. A fire destroys the premises 3. Condemnation 4. The lessor dies

The lessor dies

Constructive eviction means ____.

The property becomes so run down that the tenant must leave.

The lessor is which of the following?

The property owner

The landlord can refuse to renew a lease for all the following reasons EXCEPT 1. The tenant has 3 small children 2. He wants his brother to move in 3. The property needs major repairs 4. He wants to raise the rent.

The tenant has 3 small children

In most states, real estate brokers have no duty to disclose that ____.

There may have been a homicide or suicide in the home

True or false, under Common Law, if a lease does not state that the tenant cannot sublet, then the tenant may sublet without permission from the landlord?

True

The EPA recommended radon safe zone is ____.

Up to 4 pCi/L

When asked questions such as "How many senior citizens live here"? Your best response would be ____.

We are an equal opportunity renter. Anyone that fills out an application and meets our qualification guidelines is welcome to live here.

When dealing with tenants, ____.

When you reach an agreement, confirm it in writing

If, after your one-year lease is up, you convert to a periodic lease, it is true that ____.

You must give written notice by a specific period of time prior to the end of the period in which you wish to terminate

A church down the street from you would like you to list a home. This property has been a rental for a number of years, and the church would only like to sell it to a member of the congregation. Which of the following statements would best apply? 1. You tell the church that this is fine and you will be happy to list it for them. 2. You inform the church this is a fair housing violation. 3. You inform the church that this is an ADA violation. 4. You tell the church to first deed the property to an individual member and then complete the transaction to be compliant within the law.

You tell the church that this is fine and you will be happy to list it for them.

Johnathon, a newly licensed salesperson went to work for Broker Jones, what would Broker Jones have Johnathon sign:

an independent contractor agreement

Technology is changing the way real estate business is conducted

and is regulated by federal and state regulatory agencies as it relates to security and accuracy of information

What is the purpose of a home warranty?

it warrants appliances and system-breakdowns from normal wear and tear

All of the following would be considered as due diligence EXCEPT: 1. licensee advises seller on aspects of property that could affect value 2. licensee reviews documents to ensure they are complete 3. disclosures required by law have been provided by licensee 4. licensee recommends buyer depend on seller provided property condition disclosure in lieu of inspections

licensee recommends buyer depend on seller provided property condition disclosure in lieu of inspections

Which one of the following is NOT correct about the use of technology: 1. particular trigger words are regulated when used in advertising 2. the supervising broker must oversee associate's websites and social media advertising 3. licensees must encrypt consumer's confidential and personal information 4. social media posts and texting are not regulated as it only requires broker oversight

social media posts and texting are not regulated as it only requires broker oversight