ARGUS Certification Exam ALL VERSIONS 2024 | LATEST AND ACCURATE REAL EXAM QUESTIONS, Exams of Property Law

Download ARGUS Certification Exam ALL VERSIONS 2024 | LATEST AND ACCURATE REAL EXAM QUESTIONS and more Exams Property Law in PDF only on Docsity! ARGUS Certification Exam ALL VERSIONS 2024 | LATEST AND ACCURATE REAL EXAM QUESTIONS WITH DETAILED ANSWERS | VERIFIED FOR GUARANTEED PASS | LATEST UPDATE WITH 200+ QUESTIONS When including free rent in the leasing commission calculation, is it added or subtracted? - ANSWER Subtracted When are leasing commissions paid by default within Argus Enterprise? - ANSWER At the first of the month of the first lease year What is the default free rent formula - ANSWER Base Rent + Fixed Steps + CPI When is free rent given within Argus? - ANSWER The first month(s) of the lease Each time a filter is activated , the formula at the bottom of the screen is updated. To remove the filter, click the X to the left of the filter formula - ANSWER True What is a solution for consolidating and reporting property, tenant, portfolio, and scenario information contained within the Argus Data Warehouse? - ANSWER Portfolio Level Reporting Sensitivity Analysis allows you to create scenarios and make edits to an individual property or all the properties within your portfolio simultaneously - ANSWER True Actuals and Budget Information can be viewed on what basis? - ANSWER Monthly, Quarterly, Semi-Annually, and Annually Argus Enterprise merges three industry standard solutions: Argus Valuation - DCF, Argus asset management, and Argus Valuation-Capitalization - ANSWER True In Argus, you can utilize the keyboard shortcut commands to navigate within certain sections of the program - ANSWER True In AE, a user can ass over 100 properties into a portfolio - ANSWER True Which is a benefit of using Chart of Accounts? - ANSWER Easier to track revenues and expenses Standardizes portfolio for names of all Expenses and Revenues Helps with accounting system integration In AE you can only assign one Chart of Accounts to a portfolio - ANSWER True Only users with appropriate permissions can access all the features in the Control Panel - ANSWER True What 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 Additional principal payments can be factored into the loan computations? - ANSWER True While running a 7-year analysis on a property wit ha 30-year debt note in Argus Enterprise, the note will do what at the end of the projection? - ANSWER Balloon After changing up 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 - 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 What is the default formula for Free Rent? - ANSWER Base Rent + Fixed Steps + CPI Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability - ANSWER True The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustments - ANSWER True 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 To change the report interval setting, click which button? - ANSWER Report Options Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals? - ANSWER Cash Flow Detail All of the following are options for exporting Portfolio Level Reporting EXCEPT? - ANSWER HTML Year 1 Cash Flow Open Calculation - ANSWER (Utilities Expense * Fixed %) + (Utilities Expense * % Occupied * Variable %) General Vacancy Formula - ANSWER [(PGR + Absorption and Turnover) * (Gen Vacancy) - Absorption and Turnover] *Be sure to subtract tenant revenue if overriding* Which of the following are included in the default Leasing Commission calculation? - ANSWER Free Rent Fixed Steps What is the calculation for the Natural Breakpoint for Percentage Rent? - ANSWER Base Rent / Sales Percentage Which of the following is a purpose for a Market Leasing profile? - ANSWER To apply leasing assumptions to a tenant area when the current lease for that space expires Speculative leasing or Space Absorption, of vacant space Use the following assumptions to calculate the Percentage Rent: Tenant Size: 1,250 SF Base Rent: $20/SF/Year Annual Sales Amount: $2,000,000 Sales Percentage: 3% Breakpoint: Natural - ANSWER $35,000 A Portfolio may have _______ Chart of Accounts applied at a time - ANSWER One When calculating a Market Leasing profile with the Upon Expiration set to Vacate, ARGUS Enterprise ___________________. - ANSWER Assumes a 0% renewal probability. Which of the following are available methods for calculating General Vacancy? Check all that apply. - ANSWER % of Potential Gross Revenue % of Total Rental Revenue % of Total Tenant Revenue Non-Operating Expenses will fall below the Net Operating Income line on the Cash Flow. - ANSWER True When entering an Available Date prior to the Start Date on the Rent Roll tab, AE assumes_______________________________. - ANSWER The space is available, but vacant until the Start Date. Which of the following are a Classification type in AE? Check all that apply. - ANSWER Property Tenant System Within ARGUS Enterprise, it is possible to copy items from Excel into AE. - ANSWER True 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 Any type of item can be added in as a Miscellaneous Rent if they are directly related to the tenant. - ANSWER True For a tenant to pay a specific amount for an Expense, select the ______________ Recovery Method. - ANSWER Fixed Amount What is the extension of a property asset file in ARGUS Enterprise? - ANSWER .avux Assume a NOI of $946,250, cap rate of 10.5%, and a 3% selling costs. Capitalize the NOI to determine the Net Sales Price. - ANSWER $8,741,548 The Present Value tab allows us to enter in a separate discount rate for the Leveraged and Unleveraged Cash Flow as well as the Leveraged and Unleveraged Resale Rate. - ANSWER True It is required to enter in a Property Name and Address for every property added within a portfolio. - ANSWER False Calculate the Operating Expense shown on the Cash Flow from the following assumptions: Expense Amount: $0.45/SF/Year Property Size: 65,000 SF % Fixed: 45 % Occupancy: 82% - ANSWER $26,354 To adjust the Base Rent when you have a one-time increase, or increases that happen at different increments, use the Fixed Steps Unit column. - ANSWER False To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select the ________ option. - ANSWER Reference Only ___________ allows us to track who has been in the asset and what changes have been made to that asset. - ANSWER Audit Log How is Total Rental Revenue calculated? - ANSWER Scheduled Base Rent + CPI Increases 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 with the appropriate system rights and permissions can create ___________ values for Property and Tenant Classifications. - ANSWER More Than 100 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: - ANSWER The annual amount/area, based on Tenant Size, that will be paid by the tenant each year. Which of the following is considered a primary use for XL4ADW? Check all that Apply. - ANSWER Custom queries of results data Import of new models and data Modify modeling data in AE (Round Trip) Review modeling data in AE (Input Assumptions) How is the % of Total Revenue method calculated? - ANSWER Scheduled Base Rent + CPI Increases General Vacancy calculation frequency can be monthly or annually - ANSWER True Free Rent, Tenant Improvements, and Leasing Commission categories can be created in the Market parent tab and applied in the Rent Roll or the Market Leasing levels - ANSWER True AE merges three industry standard solutions: Argus valuation - DCF, asset management, and valuation-capitalisation - ANSWER TRUE In AE you can utilize shortcut keyboard commands to navigate within certain sections of the program - ANSWER TRUE In AE, a user can add over 100 properties into a portfolio - ANSWER TRUE What are the benefits of utilizing a Chart of Accounts? - ANSWER Easier to track revenues/expenses, standardizes portfolio for names of all expenses/revenues, helps with accounting system integration In AE you can only assign one Chart of Accounts to a portfolio? - ANSWER TRUE The Discard Changes option will discard only the last change you have made to the property record - ANSWER FALSE Only users with appropriate permissions can access all the features in the Control Panel - ANSWER TRUE To lock down a specific property and restrict who can edit it, click the _______ button located in the AE ribbon bar - ANSWER Check Out Property You can import and/or export vDCF Files from AE - ANSWER TRUE The Expense Inflation Rate will be the default percentage for: - ANSWER Operating Expenses, non-operating expenses, capital expenses Every inflation category must be given a number, or it will default to the General Inflation Rate - ANSWER FALSE Assuming 60% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ANSWER 13,000 X .6 = 7800 Assuming 0% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ANSWER 13,000 X .0 = 0 Assuming 100% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ANSWER 13000 X .1 Using the following screenshot, what is the capital expense amount that will appear on the cash flow - ANSWER 60,000 x 1.03 x 1.03 = 63,654 Free Rent, by default, kicks in at the beginning of the____________ - ANSWER Tenant's lease start date The defautl recovery structure in AE is _______ - ANSWER Net The Available date column in the Tenants - Rent Roll, represents the start of the tenant's lease? - ANSWER FALSE By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease? - ANSWER TRUE 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 Contract Renewal: - ANSWER Inserts a new contract lease into the rent roll The inflation rates are displayed on which report? - ANSWER Property Summary Which report displays New Market, Renewal Market and Weighted Averages 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 7th If 12% is a desired return, enter 12% in the ______ parent tab - ANSWER Valuation Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements in 2016? - ANSWER 0 because its base year Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements in 2017? - ANSWER 2017 op expenses - 2016 op expenses Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements in 2018? - ANSWER (2018 op expenses - 2017 op expenses) + 2017 reimbursements 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 available and the start date needs to be when the tenant's lease begins All the following are options for exporting Portfolio Level Reporting EXCEPT? A. Excel B. Tiff C. PDF D. HTML - ANSWER D. HTML Once a Property Asset Type is Selected it cannot be Changed? - ANSWER FALSE The Analysis Begin date defaults to the current Month and Year - ANSWER TRUE Which section in the navigation pane allows users to update a variety of different settings ranging from Managing Users to Data Import Validation Rules to Report settings? - ANSWER Control Panel This portfolio application tab is best described by the following statement: This application allows users to create and view analytical charts and graphs based on a combination of properties from the portfolio. - ANSWER Analysis tab Click on the inflation basis ellipsis to detail inflation monthly> - ANSWER to apply inflation to the first year of the analysis select allow inflation in Year One option to the modeling policies Within AE we can add in non-operating expenses. Non-operating expenses will fall below the NOI line on the Cash Flow. - ANSWER Non-operating expenses will fall below the NOI line on the Cash flow. They will also not be counted towards the value of the property. You can switch this feature on/off in the Report options while in the Cash Flow Report Variable Expense Calculation: Expense amount on Cash Flow = - ANSWER [(Expense amount x % Fixed) + (Expense Amount x % Variable x % Occupied)] In the property reports - Cash Flow, a user has the option to change the "Report for" options. - ANSWER - "Total Property" (default) will show all transactions within the model - "Assured and Speculative INcome" will show all income broken into assured and speculative sections - "Assured Cash Flow" will show the assured portion of the cash flow. The tenant revenue section of the reports will show assured income based on lease statuses set to contract or contract renewal. All non-tenant income and expense items will calculate the assured portion based on a pro-rata share using the tenant income by lease status as the numerator. " The Calculate Assured Income" option needs to be check in the modeling policies - general tab for this option to work What is the extension of a property asset file in AE? - ANSWER .avux _____ saves the updates to the property asset model to the database. If a calculation has been performed, it also saves the latest calculation results? - ANSWER Save Property What should be selected as the 'How Input' method for the revenue or expense to be based on a percentage of other cash flow items in the property - ANSWER % of Other To replicate a value in a specific moth of each year during the project for a specific expense, you must click which button in the Amount1 Varies window? - ANSWER Copy Column to End Rent Roll "Active" field - ANSWER allows a user to enable or disable a tenant as a reference record. If "yes" is selected the record will be included in calculations and reports. If "no" then it will be excluded. Free Rent, by default, includes: - ANSWER Base Rent, Step Rent, CPI Rent Base Year stop Formula - ANSWER Base year stop = [(Current Year Expenses - Base Year expenses) x Tenant Net Share] Leasing Commissions Calculation - Fixed % - ANSWER LC = [((Base Rent + Step Rent - Free Rent)yr1 x LC%) + (Base Rent + Step Rent - Free Rent)yr2 x LC%) + (Base Rent + Step Rent - Free Rent)yr3 x LC%) +.......] To access the Rent Roll screen when the Input window is activated, use the - ANSWER CTRL + R hot key The default entry of 100% in the Improvements/Commissions Timing Field indicates that the entire improvements/commissions payment amount should occur in month one of the lease. - ANSWER However, the amount can be distributed across the lease term by entering the percentage to be paid in each month. Click the ellipsis button in the improvements/commissions timing filed to enter percentages that vary over time When Calculating a market leasing profile with the upon expiration set to Renewal, Enterprise __________ - ANSWER Assumes 100% renewal The upon expiration Field within the market leasing profile allows us to select any overrides for past terms - ANSWER FALSE Fixed Steps should... - ANSWER Only be entered in this field if the step is to occur every lease anniversary at the same step amount> Any variation form that needs to be entered in the Rent Schedule by clicking on the base rent ellipsis AE will return to using the entry in the Months Vacant Field in the market leasing profile for________ - ANSWER Subsequent rollovers When in the Reports tab, hiiting F11 will - ANSWER Automatically open the "report Options" window specific to the report that is currently active In "Modeling Policies" - General Tab - ANSWER There is an option to "Round Market Leases to start on the first day of the month' and this option is selected by default. A user can choose to After changing modeling policy for Gross Ups any recovery strcuture created from that point forward will default to that gross up percentage - ANSWER However, any recovery strucurre created before the modeling policy change will reamin with the gross up % they had in the recovery structure grid Gross Up Override - ANSWER Allows users to make it so that within an expense group, individual expenses can have different Gross Up rates and apply different gross up amounts to individual expenses Amount eligible for Recovery Formula - ANSWER = [(Expense x Fixed%) + (Expense x Variable% x occupancy% or gross-up %) In the Audit Reports -Expense Recovery options window - ANSWER A user can turn on the option to include capital expenses Calculate the utilities using the following assumptions - Property size = 35,000 SF -Utilities Expense = $0.15/SF/YR, 35% fixed - Occupancy = 80.0% - ANSWER = [(35,000 x .15 x .35) + (35000 x .15 x .65 x .8) = 4567.5 Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0%. What value should be entered in the Amount1 field in the operating tab? - ANSWER = 30,000 Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0%. What is the operating expense amount that will appear on the Cash Flow Report - ANSWER = [(30,000 x .6) + (30,000 x .4 x .7)] Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0% and reimbursable expenses are grossed up 100%. What is the operating expense amount that will appear on the Cash Flow Report? - ANSWER 30000 Market Rent Categories - ANSWER Are useful in Template creation to help save time and reduce errors when setting up market rates Alt + I short cut - ANSWER Opens the "in use by" side panel, if a category is "in use" a user will not be able to delete it 2 How inputs under Free Rent - ANSWER 1. Relative Dates 2. Monthly Entries How input - Relative Dates - ANSWER The amount entered will be relative to the lease start date How input - monthly entries - ANSWER user can enter in a specific amount of free rent a tenant will received based on what Month/Year the lease commences Free Rent includes - ANSWER Base Rent, Fixed Steps, CPI increases Free Rent 1 Month/Year - ANSWER Tenant doesn't have to pay base, fixed, recoveries 1 month out of the year 100% Tenant Improvement Timing - ANSWER Tenant pays whole amount at Lease Start In Report Options, set "Print Annual Totals" to "No" to.... - ANSWER hide the Annual Total Columns Economic Rent = - ANSWER Rental Value@ valuation date - Free Rent By Including Free Rent --- - ANSWER AE is subtracting free rent from the calculation The "Incentives" Field - ANSWER Allows a user to link tenant specific expenses, like tenant credit, directly to the lease Free Rent, Tenant Improvement and Leasing Commission categories can be created in the Market Parent tab and applied in the Rent Roll or the Market Leasing Levels. - ANSWER TRUE When including Free Rent in the LC calculation, is it ADDED or SUBTRACTED within the formula? - ANSWER Subtracted By default, when are leasing commissions paid within AE? - ANSWER 1 month/1yearBeginn By default, when is free rent given within AE? - ANSWER Beginning of the lease term When running AE powered by CLOUD via Citrix, click - ANSWER "Save Property" to see the updated values in the Purchase Information section Debt Financing - In the "Seniority" field type a number 1 to 30 to assign priority to a loan with covenants modeled - ANSWER Seniority order is used to specify the order the loans are paid off when modeling cash sweeps. You can assign the same number to multiple loans. If you have two loans with the same seniority - ANSWER Then the creation order on the grid determines seniority between them Debt Financing - click the "Interest Rate" ellipsis to - ANSWER Open the Rate varies pop-up editor. This will allow a user to enter an interest rate that varies over time Property Filter Names - ANSWER Are independent of scenarios and can be used across the portfolio Portfolio Level Reporting can be exported via - ANSWER Microsoft excel 2003, 2007, TIIFF Image, PDF, Microsoft word 2003, 2007 Batch Update - ANSWER can create another scenario and sensitivity analysis Chart of Accounts - Account Permissions Field - ANSWER allows user to grant permissions for a single user/ group of users to be the only ones who have access to altering that specific amount Key Benefits of Chart of Accounts - ANSWER 1. easier to track reenuves and expenses 2. Standardizes naming usage for Expenses and Revenues 3. Helps with 3rd Part accounting system integration Once COA Applied to portfolio - ANSWER the COA cannot be changed to a different COA Key Features for the Property Budget Module Include: - ANSWER 1. can work with 3rd party propery management systems to import historical financial data 2. Allows the use of Chart of Accounts with COA management and mapping Allows the ability to view historical, budget, and projected results with variances and budget notes all on one screen Property Budget - "External ID" - ANSWER A critical identifier when linking the proeprty of other information sources. If XL4ADW will be used for Property budget purposes, an external ID will be required The red circle with the 'X' icon provides the following warning message: - ANSWER This data will not be used because detail level data has also been provided Actuals and Budget Information - ANSWER Can be viewed on a monthly, Quarterly, Semi- Annually, or Annually Basis If actuals and budget data is entered manually - - ANSWER further updated can be made on the data If actuals and budget data is imported from a 3rd party system, or by using XL4ADW - ANSWER manual updates cannot be made Each time after filter is activated the formula at the bottom of the screen is updated. To remove the filter, click the X to the left of the filter formula - 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 Sensitivity Analysis allows you to create scenarios and make edits to an individual property or all of the properties within your portfolio simultaneously - ANSWER TRUE