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Quiz on Real Estate Practice Test 2, created by cchapinb on 09/07/2015.

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Real Estate Practice Test 2

Real Estate Practice Test 2

Question 1 of 23

1

One of the principals to a property management agreement is the Property Manager-in-charge. What type of agent is the Property Manager-in-charge?

Select one of the following:

  • General Agent

  • Special Agent

  • Universal Agent

  • Routine Agent

Explanation

Question 2 of 23

1

Which of the following is not an essential element of a property management agreement?

Select one of the following:

  • expiration date

  • tenant income requirements

  • identification of the parties

  • owner responsibilities

Explanation

Question 3 of 23

1

The first step for a property manager is to

Select one of the following:

  • identify owners objectives

  • identify tenant requriements

  • negotiate the comission

  • have the property appraised

Explanation

Question 4 of 23

1

When conducting a property analysis, which of the following is NOT typically a consideration in determining the rental price?

Select one of the following:

  • operating costs

  • equipment

  • competition

  • shopping

Explanation

Question 5 of 23

1

Many property managers may choose to establish a reserve fund for each property. A reasonable percentage to put in the reserve fund for unforeseen issues would be

Select one of the following:

  • 5-10 percent

  • 10-15 percent

  • 15-25 percent

  • 25-30 percent

Explanation

Question 6 of 23

1

Cash required over a given period for the payment of principle and interest on a debt, such as a mortgage payment on a property is considered

Select one of the following:

  • debt service

  • credit service

  • savings service

  • money management service

Explanation

Question 7 of 23

1

Property managers can determine a more realistic picture of a properties income potential by forecasting the income and expenses for how many years out?

Select one of the following:

  • 3

  • 4

  • 5

  • 6

Explanation

Question 8 of 23

1

The law requiring leases in excess of one year to be in writing is the

Select one of the following:

  • Anti-trust law

  • Sherman and Clayton Act

  • Real Estate Settlement and Procedures Act

  • Statute of Frauds

Explanation

Question 9 of 23

1

The "Protecting Tenants at Foreclosure Act" requires the lien holder to provide tenants with _______ days notice to vacate upon foreclosure.

Select one of the following:

  • 30

  • 60

  • 90

  • 120

Explanation

Question 10 of 23

1

A schedule of planned maintenance actions to curtail breakdowns and failure is called

Select one of the following:

  • preventative maintenance

  • corrective maintenance

  • curtail maintenance

  • routine maintenance

Explanation

Question 11 of 23

1

When working the maintenance programs, the property manager is responsible for all the following EXCEPT

Select one of the following:

  • report expenses to lessee

  • schedule tasks

  • calculate costs

  • maintain records

Explanation

Question 12 of 23

1

The process of monitoring, controlling, and conserving energy in a building or organization is called

Select one of the following:

  • health management

  • home management

  • office management

  • energy management

Explanation

Question 13 of 23

1

The company's financial/cash flow statement that indicates how the revenue is transformed into net income is called

Select one of the following:

  • profit feasibility statement

  • net loss statement

  • profit and loss statement

  • financial performance statement

Explanation

Question 14 of 23

1

As a responsibility of conducting business, there are several tax forms a property manager must have prepared. The form use to report tax exemption by the employee is

Select one of the following:

  • Employment Identification Number (EIN)

  • Employ Allowance Withholding Certificate (W-4)

  • Employment Eligibility Verification (I-9)

  • Employers Quarterly Tax Return (941)

Explanation

Question 15 of 23

1

As an analytical tool, which report would be best used to determine the short term viability of a company, particularly the companies ability to pay bills?

Select one of the following:

  • profit and loss statement

  • net loss statement

  • cash flow statement

  • profit feasibility statement

Explanation

Question 16 of 23

1

Property owners are only concerned with the bottom line, such as converting property calue into income. When estimating the owners potential return on the investment, the property manager must know the

Select one of the following:

  • cash analysis

  • net report

  • cost approach

  • capitalization rate

Explanation

Question 17 of 23

1

Due to the risk involved when conducting business, property managers may look to purchase types of insurance to cover potential liability. Concerning risk management , this step would be an example of

Select one of the following:

  • transfer it

  • control it

  • retain it

  • avoid it

Explanation

Question 18 of 23

1

The type of insurance to cover medical bills and some lost pay as a result of injury to an employee is called

Select one of the following:

  • Errors and Omissions

  • General Liability and Workers Compensation

  • Office and Floater

  • Surety Bond

Explanation

Question 19 of 23

1

Which of the following certifies that an insurance policy has been purchased as show an abstract of the most important provisions of the insurance policy?

Select one of the following:

  • Certificate of Insurance

  • Insurance Binder

  • Certificate of Authenticity

  • Proof of Insurance

Explanation

Question 20 of 23

1

Acme Property Management has four offices in South Carolina. how many trust accounts must be established?

Select one of the following:

  • one for each office

  • no more than two companies can use one trust account

  • every property manager-in-charge must have their own trust account

  • the company may have one centralized account for all four offices if the SC Real Estate Commission approves the account

Explanation

Question 21 of 23

1

A property manager has received $800 security deposit for a rental property, which is immediately deoposited into the property managers operating account. This would be an example of

Select one of the following:

  • conversion

  • commingling

  • accounting

  • representation

Explanation

Question 22 of 23

1

A tenant has signed a two year lease and provides $1500 security deposit. The tenant has waived their right to any interest that would accrue during the lease period. The property manager places the security deposit into a one year high yield certificate of deposit (CD). This would be an example of

Select one of the following:

  • conversion

  • commingling

  • accounting

  • buisness

Explanation

Question 23 of 23

1

Security deposits and pet deposits must be deposited into the trust account

Select one of the following:

  • within 30 days of signing the lease

  • within 48 hours of receipt, excluding Saturday, Sunday, and bank holidays

  • immediately upon receipt, excluding Saturday, Sunday and bank holidays

  • immediately upon receipt for cash or certified funds

Explanation

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