Argus Certification Exam ACCURATE TESTED VERSIONS OF THE EXAM FROM 2024 - 2025, Exams of Property Law

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Argus Certification Exam ACCURATE TESTED VERSIONS OF THE EXAM FROM 2023TO 2024 | ACCURATE AND VERIFIED ANSWERS | NEXT GEN FORMAT | GUARANTEED PASS WITH 100+ QUESTIONS Which of the following are available methods for calculating General Vacancy? -% of Effective Gross Revenue -% of Total Tenant Revenue -% of Potential Gross Revenue -% of Total Rental Revenue - ANSWER % of Total Tenant Revenue % of Potential Gross Revenue % of Total Rental Revenue Which of the following are included in the default Leasing Commission calculation? -Fixed Steps -Percentage Rent -Free Rent -CPI - ANSWER Fixed Steps Free Rent In the Property Portfolios section of the File tab, existing properties within the portfolios are displayed in the ___________ pane. - ANSWER Properties The ___________ will display what properties were edited by which users within the opened portfolio. - ANSWER Audit Log Which of the following is NOT a Property sub-tab? -Operating -Area Measures -Inflation -Rent Roll -Description -Chart of Accounts – ANSWER Operating Inflation Rent Roll The _______________ sub-tab allows users to upload numerous files and URLs to centralize the location of property documents . - ANSWER Attachments Percentage Rent fields are only available when _________ is selected as the property type. -Office -Industrial -Retail or Mixed Use that includes retail -Mixed use that does not include retail – ANSWER Retail or mixed use that includes retail A Portfolio may have _______ Chart of Accounts applied at a time. – ANSWER One To change the Report Print Interval setting, click the __________ button. -Creates a stabilized vacancy rate for a property and represents the minimum vacancy loss for the property on a monthly or annual basis. -Allows the user to model virtually any recovery structure they might encounter in a commercial real estate lease contract. - ANSWER Apply leasing assumptions to a tenant area when the current lease for that space expires. Setting up Space Absorption, or speculative leasing of a vacant space. Use the following assumptions to calculate the General Vacancy for the property in Year 1 of the analysis if we are overriding Tenant 1 and a Percent of Potential Gross Revenue is the method being applied. There is no Absorption & Turnover in Year 1. General Vacancy Rate: 5% Total Potential Gross Revenue: $87,632 Tenant 1 Rental: $42,330 Tenant 1 Override %: 0% - ANSWER $2,265 What is the calculation for the Natural Breakpoint for Percentage Rent? - ANSWER Base Rent / Sales Percentage Which Recovery Structure would you select to enter in a tenant that pays their net pro-rata share of all expenses over a specified base stop? - ANSWER Stop Amount/Area When leases roll to the Market Leasing profile, by default the rents do not inflate during the rollover term. - ANSWER True ________________ is a solution for consolidating and reporting property, tenant, portfolio, and scenario information contained within the ARGUS Data Warehouse. - ANSWER Portfolio Level Reporting Using the information below, calculate the amount that will appear as the Operating Expense on Year 1 of the Cash Flow: Utilities Expense: $16,500 % Fixed: 35% % Occupied: 82% % Grossed Up: 90% - ANSWER $14,569.50???? The Fixed Amount/Area Recovery Method is calculated as: -The increases over an amount/area that will be paid by the tenant each year. -The annual amount/area, based on Property Size, that will be paid by the tenant each year. -The annual amount/area, based on Tenant Size, that will be paid by the tenant each year. -None of the Above - ANSWER The annual amount/area, based on Tenant Size, that will be paid by the tenant each year. Which Recovery Structure would you select to enter in a tenant that pays their net pro-rata share of all expenses over a specified base stop? - ANSWER Stop Amount/Area Users can define a varying buliding area over time by clicking the Building Area ellipsis . - ANSWER True Which of the following reports can be accessed by clicking Property Reports? -Executive Summary -Budget Comparison -Property Resale -Cash Flow - ANSWER Executive Summary Budget Comparison Cash Flow When leases roll to the Market Leasing profile, by default the rents do not inflate during the rollover term. - ANSWER True Entering in a property address will allow a user to access a map of the location in AE. - ANSWER False Which of the following are the three levels of detail offered with the Chart of Accounts? -Parent/Header -Cashflow/ GL Account -Job Costs -Revenue Costs - ANSWER Parent/Header Cashflow/GL Account Job Costs Enter the Property Resale information in the _______________ tab. This is a single choice question. Selections are automatically selected as you use arrow to move. - ANSWER Valuation The _________ option will allow a user to view and change the options used for data entry and calculations in this property model. - ANSWER Modeling Policies Using the information below, calculate the amount that is eligible for recovery when using Gross Ups: Utilities Expense: $16,500 % Fixed: 35% % Occupied: 82% % Grossed Up: 90% - ANSWER $15,427.50 Free Rent, by default, kick in at the beginning of the _________. - ANSWER Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is __________. - ANSWER Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - ANSWER False. The Start Date represents the start of the tenants lease. True or False: By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. - ANSWER True True or False: The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. - ANSWER True Contractual Renewal: a) Utilizes the Renew Market Leasing profile terms b) Utilizes the New Market Leasing profile terms c) Inserts a new contract lease into the Rent Roll d) None of the above - ANSWER c) Inserts a new contract lease The inflation rates are displayed on which report? - ANSWER Property Summary Which report displays New Market, Renewal Market, and Weighted Average results? - ANSWER Assumptions Report When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6-year analysis? - ANSWER The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab. - ANSWER Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - ANSWER $0 What will LB Corporation pay for reimbursements in 2017? - ANSWER The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - ANSWER The amount of 2018 total operating expenses over 2016 total operating expenses If a tenant's space is available, but sitting vacant before they move in and you want to show that vacancy on reports, what do you need to enter in for the Lease dates? - ANSWER The Available Date needs to be when the space is actually available and the Start Date needs to be when the tenant's lease begins. True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window. - ANSWER True Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? - ANSWER (2021 NOI / 10% Cap Rate)*(1.0 - 3% adjustment) Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalises the NOI of the sale year? - ANSWER (202 NOI / 10% Cap Rate)*(1.0 - 3% adjustment) When using an Available date that is before the Start date, the loss in potential rent (Base Rental Revenue) can be shown on which report? - ANSWER Lease Audit ______________________ is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner. - ANSWER Percentage Rent What is the default calculation formula for Chargeable Sales? - ANSWER Sales Volume - Breakpoint Calculate the General Vacancy Loss using the following assumptions: -PGR: $800,000 -ATV: $20,000 -Calculation: 5% of PGR - ANSWER [(800,000 + 20,0000)*0.05] - $20,000 = $21,000 True or False: Additional principal payments can be factored into the loan computations? - ANSWER True While running a 7-year analysis on a property with a 30-year debt note in ARGUS Enterprise, the note will _____________ at the end of the projection. - ANSWER Balloon After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percent in the Modeling Policies window. - ANSWER False The default formula for Leasing Commissions is: - ANSWER Base Rent + Step Rent + CPI - Free Rent To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select ________________ - ANSWER Reference Only True or False: The percentage of the expense that is eligible to be recovered can be altered for the entire property within the Expense tab - ANSWER True What is the default formula for Free Rent? - ANSWER Base Rent + Fixed Steps + CPI True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability. - ANSWER True True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment. - ANSWER True True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen. - ANSWER False Different levels of detail can be set for the Audit Log in which Portfolio Application tab? - ANSWER Portfolio Details Default unit of Area Measures is? - ANSWER Square Feet When entering a inflation percentage that is less than 1%, it must be in what form? - ANSWER decimal Percentages of inflation may be entered as... - ANSWER positive or negative whole numbers, or a decimal If an inflation field is left empty... - ANSWER it will default to the General Inflation Rate Why is inflation in year 1 never available? - ANSWER Because it does not occur until the beginning of the 2nd year Inflation input into Year 2 will apply to which years numbers? - ANSWER Year 1 When entering the Property Size, enter the (blank) area - ANSWER net rentable Default inflation is? - ANSWER 0% unless changed The main screen that displays once a file has been created or opened - ANSWER Executive Dashboard Executive Dashboard - ANSWER Basic summary of all the Year 1 information in an ARGUS Valuation - DCF file In the Executive Dashboard, where are the links to the input screens found? - ANSWER Icons on the tool bar as well as the links in grey type The Globe and Magnifying Glass icon - ANSWER Is a link to view the property in Google Maps Where are the Export, Print, Calculate, and Pause button located? - ANSWER Bottom right hand corner Where is the import Graphic icon located? - ANSWER Upper left corner of the executive dashboard The Import Graphics icon - ANSWER Import images and will be included on each new property created with that template To create or modify a dashboard select the (blank) - ANSWER Dashboard template icon Where is the Dashboard Template icon located? - ANSWER The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - ANSWER Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - ANSWER Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. What are examples of miscellaneous revenues? - ANSWER Vending machines or rental of roof antennas What are the possible misc. revenues that can be selected? (5) - ANSWER % of EGR, $ Amount, $/Area, % of Constant, % of Line % of Line - ANSWER Misc revenue; the allows the revenue to be based on a percentage of other items in the property % of EGR - ANSWER Misc. Revenue; percentage of the Effective Gross Income $ Amount - ANSWER Misc. Revenue; interpreted as a full payment amount $/Area - ANSWER Misc. Revenue; multiplied by the area measure selected in the area column % of Constant - ANSWER Misc Revenue; interpreted as a percentage of the Amount column. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable - ANSWER $ Amount, % of EGR, % of line Rebursable Expenses - ANSWER Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants. Common Reimburment Expenses - ANSWER CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - ANSWER Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - ANSWER Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - ANSWER Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section Typical CapEx are: - ANSWER Stuctural or Capital reserves, building repairs, or improvements (anything to improve te property value that is not routine) Property Level reports can be accessed in (2) ways - ANSWER Property level Reports icon in the toolbar or Reports Menu - Property Level selection Property Level Reports can be viewed - ANSWER Annually, Monthly, Quarterly, Semi- Annually Ways to access the Rent Roll - ANSWER From tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - ANSWER Office, Retail, Industrial, Pad Site and Storage True of False: Extra months are always placed at the beginning of the analysis - ANSWER TRUE How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA) - ANSWER Select the Calculate a Blended Value (ONLY ASIA) Property Resale window - ANSWER Where resale assumptions are made Ways to calculate the resale at the end of the analysis (3) - ANSWER Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years Capitalize NOI - ANSWER Divides the NOI in the final analysis year by the cap rate Gross Proceeds from Sale = (formula) - ANSWER NOI/Cap Rate Apply Rate to following year income (Property Resale) - ANSWER Resale proceeds will be calculated using the following year of the analysis Calculate Resale for All Years (Property Resale) - ANSWER Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - ANSWER Bottom right icon of the Property Resale screen Cap Rate Matrix - ANSWER Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report Present Value Discounting - ANSWER Pg. 46 To access the Cap Rate Matrix Report - ANSWER Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - ANSWER Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - ANSWER Annually, Monthly, Quarterly Present Value Discounting - ANSWER target internal rate of return