Argus Certification Exam Practice Test 1, Exams of Property Law

Download Argus Certification Exam Practice Test 1 and more Exams Property Law in PDF only on Docsity! ARGUS CERTIFICATION EXAM, ARGUS CERTIFICATION PRACTICE TEST 1.Once a Property Asset Type is selected it cannot be changed (T/F): False 2.The Analysis Begin date defaults to the current Month and Year (T/F): True 3. Which of the following is a classification type in AE? Select all that apply. a. Property b. Tenant c. Region d. Lease: a. Property b. Tenant 4.Multiple properties can be opened simultaneously in ARGUS Enterprise (T/F): True 5. What is the extension of a property asset file in ARGUS Enterprise? a. .sf b. .avux c. .aeex d. .aeix: b. avux 6. To take a property out of read-only mode, the button must be selected from the Ribbon. a. Refresh b. Ellipses c. Check In/Out Property d. Edit Property: d. Edit Property 7. What should be selected as the 'How Input' method in order for the revenue or expense to be based on a percentage of other cash flow items in the property? a. Amount 1 b. Sub-lines c. % of Other d. Currency Amount / Vacant Area: c. % of Other 8. To replicate a value in a specific month of each year during the project for a specific expense, you must click which button in the amount 1 Varies window? 1 / 14 date and you select Base Year Stop, the calculated stop will use all reimbursable expenses in the first year of the analysis. 21.Stop Amount: Enter the building stop amount. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. 22.Stop Amount/Area: Enter the building stop amount/area. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount/area entered based on their proportionate share of the building area. 23.Fixed Amount: Enter the annual recovery amount that will be paid by the tenant each year. The fixed amount can be a single amount or it can vary over time. The fixed amount is a tenant amount not a building amount. 24.Fixed Amount/Area: Enter the annual amount/area recovery that will be paid by the tenant each year. The fixed amount/area can be a single amount or it can vary over time. The rate entered varies according the amount of area under lease, not according to the entire building area. 25.None: No recoveries will be calculated for the tenant. 26.Market: Select the tenants to be included in the Market calculation. 27.Base Year Stop +1: Expense stop will be established by the amount of recover- able expenses in the recovery year following the year the lease begins. Note if you select this method and the lease year is before the analysis start date, yet within the first recovery year, then the expense stop will be set to equal the recoveries from the second recovery year. If you select this method and the lease year is before the analysis start date and prior to the start of the first recovery year, then the expense stop will be set in the same manner as the existing base year stop. 28.Base Year Stop -1: Expense stop will be established by the amount of recov- erable expenses in the recovery year prior to year the lease begins. If you select this method and the lease begins before the analysis, the expense stop will be set in the same manner as the existing base year stop recovery method. If you select this method and the lease begins during the first analysis year yet after the start of the second recovery year, the expense stop will be established by the recoverable expenses that occur within the first recovery year. 29.User Recovery Structures: You can also create user-constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. 3 / 14 30.Market (Upon Expiration): Renewal processed based on the renewal prob- ability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, TI's, LC's etc.) 31.Reabsorb: All income for the space will cease when the initial lease term expires. In other words the space "goes dark" and does not lease again. This allows the space to be "reabsorbed" or re-leased either in full or in smaller sections 32.Renew: Assumes a 100% renewal probability for the current renewal period. A new speculative lease is created based on the renewal market entries in the Market Leasing profile. 33.Vacate: Assumes a 0% renewal probability for the current renewal period. A new speculative lease is created based on the new market entries in the Market Leasing profile. 34.Option: AE will entirely ignore the Market Leasing profile, and will insert a new speculative lease line into the Rent Roll. Select Option only if specific rent and parameters of the option term are known. 35.Contract Renewal: AE will ignore the Market Leasing profile, and will insert a new contract lease into the Rent Roll. Select Contract Renewal if the specific rent and parameters of the renewal are known. 36.Month to Month: AE will ignore the Market Leasing profile, and will insert a new speculative lease line into the Rent Roll. This option can be used after a lease expires and a tenant needs to occupy the space for only a couple more months before vacating. 37.Holdover: AE will ignore the Market Leasing profile, and will insert a new speculative lease line into the rent roll. A holdover tenant is a renter who remains in a property after the expiration of the lease. If the landlord continues to accept rent payments, the holdover tenant can continue to legally occupy the property. State laws and court rulings determine how long the holdover tenant's new rental term is if the landlord accepts rent. 38.Lease Type: Contract v. Speculative: Contract: The tenant is under contract and occupies space in the building. Speculative: The tenant is not currently in the building Custom Lease Status: This option includes any custom lease statuses you have created. 39.Breakpoint: The sales amount which must be achieved prior to the 5 / 14 c) Capital Expenses d) All of the above: All of the above 54.True or False: Every inflation category must be given a number or it will default to the General Inflation Rate.: False 55. Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%).: - $7,800 (.6*13000) 56.Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis.: $0 57.Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis.: $13,000 58. What is the Capital Expense amount that will appear on the Cash Flow?- : $63,654??? 59.Free Rent, by default, kick in at the beginning of the .: Tenant's Lease Start Date 60.The default recovery structure in ARGUS enterprise is .: Net 61.The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease.: False. The Start Date represents the start of the tenants lease. 62.True or False: By default, Tenant Improvements and Leasing Commis- sions are paid at the start of the tenant's lease.: True 63.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.: True 64. 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: c) Inserts a new contract lease 65.The inflation rates are displayed on which report?: Property Summary 66.Which report displays New Market, Renewal Market, and Weighted Aver- age results?: Assumptions Report 6 / 14 80.True or False: Additional principal payments can be factored into the loan computations?: True 81. 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.- : Balloon 82.After changing the modeling policy for Gross Ups, any Recovery Struc- ture already created will default to the Gross Up percent in the Modeling Policies window.: False 83.The default formula for Leasing Commissions is:: Base Rent + Step Rent + CPI - Free Rent 84. To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select - : Reference Only 85.True or False: The percentage of the expense that is eligible to be recov- ered can be altered for the entire property within the Expense tab: True 86.What is the default formula for Free Rent?: Base Rent + Fixed Steps + CPI 87.True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability.: True 88.True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment.: True 89.True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen.: False 90.Different levels of detail can be set for the Audit Log in which Portfolio Application tab?: Portfolio Details 91. To change the report interval setting, click the button.: - Report Options 92.Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals?: Cash Flow Detail 93. All of the following are options for exporting Portfolio Level Reporting except: a) Excel b) Tiff c) PDF d) HTML: d) HTML 8 / 14 94.Task Pane provides a number of shortcuts and convenient functions, which include:: Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace 95.Getting Started (Task Pane) - 4: Create new files, open recent files, connect to ARGUS website, and access a shared workplace online 96.ARGUS Alerts: Login to the ARGUS website to receive instant alerts, news, and other information 97.Property Library: Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. 98.Toolbar (on the Property Library window): Allows you to navigate to direc- tories and to perform actions on one or multiple ARGUS files without opening the files themselves 99.Items of Property Library Toolbar (5): Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry 100. When creating a ARGUS file it is best to start with...: the Property Descrip- tion 101. Inputs of Property Description: Basic property information - timing area measures, and inflation 102. What is the first window to appear when creating a new file?: Property Description window 103. Where is the password button found?: Property Description window 104. Property Type can or cannot be changed once selected?: CANNOT! 105. Property Timing tab is found where?: Property Description window 106. Property Timing tab includes:: Analysis start date, Reporting Start Date, and # of years to Report or End Date 107. Analysis Start Date: Sets the date at which ARGUS Valuation - DCF calcu- lations will occur. For example, month 6 is relative to the analysis start date (not Reporting Start Date) 108. All entries that begin with a "relative" start date will be relative to which date?: Analysis Start Date on each new property created with that template 128. To create or modify a dashboard select the (blank): Dashboard template icon 10 / 14 129. Where is the Dashboard Template icon located?: The toolbar of the exec- utive dashboard 130. What are the (blank) per-formatted Dashboard templates? - 6: Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation 131. Miscellaneous Revenues: Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. 132. What are examples of miscellaneous revenues?: Vending machines or rental of roof antennas 133. What are the possible misc. revenues that can be selected? (5): % of EGR, $ Amount, $/Area, % of Constant, % of Line 134. % of Line: Misc revenue; the allows the revenue to be based on a percentage of other items in the property 135. % of EGR: Misc. Revenue; percentage of the Effective Gross Income 136. $ Amount: Misc. Revenue; interpreted as a full payment amount 137. $/Area: Misc. Revenue; multiplied by the area measure selected in the area column 138. % of Constant: Misc Revenue; interpreted as a percentage of the Amount column. 139. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable: $ Amount, % of EGR, % of line 140. Rebursable Expenses: Property expenses the landlord will recover. All en- tires will be available for reimbursement by the tenants. 141. Common Reimburment Expenses: CAM, Taxes, Insurance, Repairs & Maintence 142. Reimbursable Expenses may be entered as (7): Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, 143. % of Fixed column: Determines the amount of the expense ( or revenue) that is based on occupancy 144. Capital Expenditures: Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section 145. Typical CapEx are:: Stuctural or Capital reserves, building repairs, or im- provements (anything to improve te property value that is not routine) 11 / 14 164. Formula for the Market Rate Upon Expiration calculations: [Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate 165. Possible Options of the Upon Expiration drop-down menu (6): Market, Renew, Vacate, Option, ReAbsorb, Non-Contiguous 166. Yield Menu contains (4): Property Purchase Price, Property Resale calcu- lation, Present Value Discount rate, and Debt Financing 167. Once revenues, expenses, and costs have been entered the next step is...: to enter the purchase price along with a resale calculation 168. Direct Capitalization is useful for brokers because: they typically deter- mine the value of the property using the "going in" cap rate 169. The Capitalization Period: is a 12-month period of income into which the cap rate is divided 170. Direct Cap Capitalization Options (3): Year One, Year Starting in Month, First 12 months 171. Capitalization Period: Year One: Use the first calendar year of the analysis period 172. Cap Period: Year Starting in Month x: select a specific month within the 12 month period 173. Cap Period: First 12 Months: use the first 12 months of the analysis 174. Difference between Cap Period Year One and First 12 Months: Is when the first year of the analysis is less than 12 months (ex: 1/12 - 6/12) 175. True of False: Extra months are always placed at the beginning of the analysis: TRUE 176. How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA): Select the Calculate a Blended Value (ONLY ASIA) 177. Property Resale window: Where resale assumptions are made 178. Ways to calculate the resale at the end of the analysis (3): Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years 179. Capitalize NOI: Divides the NOI in the final analysis year by the cap rate 180. Gross Proceeds from Sale = (formula): NOI/Cap Rate 181. Apply Rate to following year income (Property Resale): Resale proceeds will be calculated using the following year of the analysis 13 / 14 182. Calculate Resale for All Years (Property Resale): Calculate and display proceeds for each analysis year (for reporting purposes) 183. Where can you find the Cap Rate Matrix?: Bottom right icon of the Property Resale screen 184. Cap Rate Matrix: Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report 185. Present Value Discounting: Pg. 46 186. To access the Cap Rate Matrix Report: Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix 187. Prospective Resale and IRR Summary Report: Shows what we think we will get back and when 188. Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu: Annually, Monthly, Quarterly 189. Present Value Discounting: target internal rate of return