Argus Certification Exam Practice Test 1, Exams of Property Law

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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

tenant's lease begins prior to the analysis start 2 / 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

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

payment of any percentage rent. 4 / 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.: $ 57.Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis.: $13,
56. 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
57. 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

67.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?: The 7th years NOI 68.If 12% is a desired return, enter 12% in the parent tab.: Valuation 69.What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure?: $ 70.What will LB Corporation pay for reimbursements in 2017?: The amount of 2017 total operating expenses over 2016 total operating expenses 71.What will LB Corporation pay for reimbursements in 2018?: The amount of 2018 total operating expenses over 2016 total operating expenses 72.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?: 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. 73.True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window.: True 74.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?: (2021 NOI / 10% Cap Rate)(1.0 - 3% adjustment) 75.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?: (202 NOI / 10% Cap Rate)(1.0 - 3% adjustment) 76.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?: Lease Audit

77. is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner.: Percentage Rent 78.What is the default calculation formula for Chargeable Sales?: Sales Volume - Breakpoint
78. Calculate the General Vacancy Loss using the following assumptions: -PGR: $800,

-ATV: $20,

-Calculation: 5% of PGR: [(800,000 + 20,0000)*0.05] - $20,000 = $21, 7 / 14

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

110. Reporting Start Date must fall (where) relative to the Analysis Start Date: on or after the Analysis Start Date
111. Analysis of up to (xx) years may be conducted: 40
112. If the analysis begins midyear...: ARGUS will calculate a stub year with the partial year in the first year
113. Default unit of Area Measures is?: Square Feet
114. When entering a inflation percentage that is less than 1%, it must be in what form?: decimal
115. Percentages of inflation may be entered as...: positive or negative whole numbers, or a decimal
116. If an inflation field is left empty...: it will default to the General Inflation Rate
117. Why is inflation in year 1 never available?: Because it does not occur until the beginning of the 2nd year
118. Inflation input into Year 2 will apply to which years numbers?: Year 1
119. When entering the Property Size, enter the (blank) area: net rentable
120. Default inflation is?: 0% unless changed
121. The main screen that displays once a file has been created or opened- : Executive Dashboard
122. Executive Dashboard: Basic summary of all the Year 1 information in an ARGUS Valuation - DCF file
123. In the Executive Dashboard, where are the links to the input screens found?: Icons on the tool bar as well as the links in grey type
124. The Globe and Magnifying Glass icon: Is a link to view the property in Google Maps
125. Where are the Export, Print, Calculate, and Pause button located?: Bot- tom right hand corner
126. Where is the import Graphic icon located?: Upper left corner of the exec- utive dashboard
127. The Import Graphics icon: Import images and will be included

on each new property created with that template

128. To create or modify a dashboard select the (blank): Dashboard template icon 10 / 14