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WorksheetsCH 15 - Real Estate Management
Total questions: 31
Worksheet time: 1hrs 2mins
A tenant makes a rental payment in cash. When is the property management firm required to deposit the cash in the escrow account?
no later than three banking days after receipt
no later than 72 hours after receipt
immediately, but no later than three banking days after receipt
no later than 72 hours after receipt but not counting holidays
Which of the following actions is a property manager permitted to perform?
l. Prepare depreciation schedules for the property owner.
ll. Make capital improvements to the property for the property owner when the property manager deems them necessary for the property owner.
l only
ll only
Both l and ll
Neither l nor ll
A real estate broker acting as an owner's property manager may:
profit from private contracts at the expense of the owner
manage the client's property in a manner most advantageous to the broker
be held accountable for complete and accurate trust account records
hold a provisional broker license so long as he is the principal broker of the management firm
All of the following are important functions of a property manager, EXCEPT:
supervising the maintenance of the property
protecting the physical integrity of the property
meeting the functional requirements of the tenants
preparing the owner's income tax returns
The property manager's chief concern should be that the property:
is seldom vacant because it is consistently rented at the lowest rent that produces a profit
is managed to achieve the highest rate of return possible for the owner's investment
manager's time is maximized in management of the property
exhibits the proper amount of the owner's pride of ownership
Functions of the property manager include all of the following, EXCEPT:
producing the best possible net operating income for the owner
preservation and maintenance of the property
carrying out a fiduciary relationship to the owner
fulfilling fiduciary duties and obligations to the tenants
A property manager's primary obligation is to:
the tenants
the owner
the banker
government authorities
The type of maintenance that is most often overlooked is:
corrective maintenance
repairs
routine maintenance
preventative maintenance
Because of the complexity of the laws that affect today's properties, property managers are required to have knowledge in all of the following areas, EXCEPT:
environmental hazards
accessible construction
nondiscriminatory practices
investment securities laws
A property manager is paid 8% of all collected rents each month from a 20-unit apartment building. There are 5 one-bedroom units that rent for $500, 10 two-bedroom units that rent for $650 and 5 three-bedroom units that rent for $800. If the units are fully leased and the property manager collects for all the units except two of the two-bedroom units, how much is the management fee for this month?
$912
$936
$1,040
$1,950
Property managers under NC law are required to keep all property records for how long?
1 year
3 years
5 years
10 years
Unlicensed assistants in a property management office may do all of the following, EXCEPT:
fill in the blanks on preprinted forms and leases
show rental properties
receive commissions based on the properties they handle
collect and handle rent monies
Property managers are legally permitted to perform all of the following functions, EXCEPT:
create concessions, discounts and inducements for occupancy
collect and review competitive bids for improvements or repairs
perform a market analysis of rents for the owner
advise the property owner on the tax consequences of their investment
Premier Properties is an out-of-state apartment complex company. Premier has been engaged in the building of rental complexes in various states and has decided to erect a complex in North Carolina. The company hires a full-time employee who is located on site, receives a regular salary and is also compensated with a free unit provided to them by Premier. The company has asked this person to manage the entire property and perform all of the duties of a property manager, including the handling of all rent and security deposits. Under North Carolina law, this person:
must be a a licensed broker
has to be affiliated with a property management entity with a supervising BIC
does not need to be licensed
may act as a manager, but must hire NC real estate licensees to handle the money
In regard to the transfer and retention of risk, which of the following statements is CORRECT regarding property management?
A low deductible transfers risk from the owner to the insurance company. A high deductible results in the owner retaining the risk.
risks can be controlled by installing sprinklers and fire doors and taking other preventative measures
A low deductible transfers risk from the insurance company to the owner. A high deductible results in the insurance company retaining the risk.
removing a swimming pool avoids risk
All of the following statements about property management are correct EXCEPT:
Property management is a specialized field with in the real estate industry
The property manager acts as an agent of the property owner
The term is “property manager“ and “resident manager“ have the same meaning
A property manager is a fiduciary
A property managers basic responsibilities to the owner include:
I: produce the best possible net operating income from the property
II: maintain and increase the value of the owners investment
I only
II only
both I and II
Neither I or II
A budget based on forecast income and anticipated expenses over a period of years is called what?
Stabilized budget
Projected budget
Anticipated budget
Operating budget
Which of the following creates an agency relationship between a property manager and the property owner?
Management proposal
Management report
Management agreement
Management plan
A nonlicensed, salaried employee working for a licensed real estate broker who has contracted to manage a property for a property owner can perform all of the following activities without a real estate license EXCEPT:
Marketing
Showing properties
Negotiating terms of the lease
Instituting legal actions
Failure of the broker to perform duties under the property management agreement:
Is a breach of the duty agency
Would not make the broker liable to the owner, but not to the real estate commission
Would make the broker liable to the real estate commission, but not the owner
Is not a breach of the duty agency
Smith and Wesson apartments consists of 13 units, two of which rent for $495 per month, five for $400 per month, and all the others for $350 per month. The brokers management fee is based on the gross monthly rents collected each month and is at the rate of 10% of all rents $400 or more and 7% of any rents less than $400. During the month of June, a check on one of the $495 units is returned unpaid, one of the $400 units is vacant, and one of the $350 units is rented for only seven days. What is the brokers management fee this month?
$244.72
$337.72
$375.22
$387.22
Management fee equals 10%
Units A and B rent for $500
Units C through E rent for $600
Owen Trent owns all of the units.
JQP properties manages the units.
During the month of September, all of the units were occupied. What was the total amount disbursed to the owner?
$110
$990
$2520
$2800
Management fee equals 10%
Units A and B rent for $500
Units C through E rent for $600
Owen Trent owns all of the units.
JQP properties manages the units.
During October, unit B was vacant but all the remaining units were occupied. What property management fee was collected by JQP properties?
$230
$2070
$2300
$320
Agency agreements between property managers and the owners of the property must be in writing from the time of inception with a:
Licensee
Lessor
Lessee
Lienholder
With the tenant, oral agency must be converted to a written format prior to:
The beginning of the lease term
For substantial contacts
Submitting an offer to purchase
Submitting an offer to lease or rent
Acme property management has contracted to manage an eight unit apartment building for a 9% management fee on all rents collected. The units each rent for $850 per month. Currently there are six units that are fully rented, one that was rented for 18 days and one that was occupied but the tenant failed to pay the monthly rent. How much management fee is Acme entitled to this month?
$612
$581
$505
$490
Happy hills apartments contains 36 three-bedroom units and 50 for two bedroom units. The three-bedroom units rent for $1050 per month and the two bedroom units rent for $840 per month. The vacancy factor for both configurations last month was 12%. If the management fee is 8% of gross rents collected, how much was the management fee?
$5854.40
$6652.80
$9180.86
$9979.20
Agency agreements with tenants can be oral, but must be converted into writing prior to:
making an offer to purchase
making an offer to rent or lease
first substantial contact
the renewal of the lease
When leasing, earnest money must be deposited no later than:
3 banking days of receipt
3 banking days of acceptance of contract
3 calendar days of receipt
3 calendar days of acceptance of contract
When selling rental property, earnest money must be deposited no later than:
3 banking days of receipt
3 banking days of acceptance of contract
3 calendar days of receipt
3 calendar days of acceptance of contract
