ARGUS Certification EXAM NEW VERSION LATEST UPDATE 2024-2025 WITH ACCURATE ANSWERS, Exams of Property Law

Download ARGUS Certification EXAM NEW VERSION LATEST UPDATE 2024-2025 WITH ACCURATE ANSWERS and more Exams Property Law in PDF only on Docsity! ARGUS Certification EXAM NEW VERSION LATEST UPDATE 2024-2025 WITH ACCURATE ANSWERS GUARANTEED PASS BEST STUDYING MATERIAL WITH 100+ QUESTIONS 1. If there is 20,000 SF of vacant space entered in the Space Absorption tab, how many leases will be created if the Average Lease Area is 3,000 SF - Ans - 7 2. A tenant can have multiple recovery structures applied to their lease – Ans - False 3. Detailed Recovery Structures can be assigned to Market Leasing profiles in the Tenant - Recoveries tab – Ans - False 4. Tenants can belong to multiple Tenant Groups - Ans - True 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% and reimbursable expenses are grossed up to 100.0%. What is the operating expense amount that will appear on the Cash Flow report? (Enter value with NO commas) - Ans - (30000*.6)+(30000*.4*.7)=26400 6. 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 to 100.0%. What is the operating expense amount that is eligible to be used in recovery calculations? (Enter value with NO commas) - Ans - 30000 7. ARGUS Enterprise can have a different term length for Amortization and the Loan Term - Ans - True 8. A user can change the Hold Length for the Property Resale by selecting either Hold Years or a Fixed Date - Ans - True 9. In what part of the program can the default General Vacancy calculation frequency be changed? - Ans - Modeling Policies 20. The AE file extension is .AVUX - Ans - True 21. The Audit Reports - Occupancy report allows us to see when our tenants expire and the report can be displayed either by the "Top 5 Tenants", "All Terms" or "Expires by Year" - Ans - False 22. Archiving a property will make it completely unavailable for edits by anyone - Ans - True 23. Which ARGUS Sensitivity Analysis feature is best described by the following definition - Ans - Allows a user to create filters and make adjustments to assumptions and save them as a set: Sensitivity Assumptions -allows user to see up to 10 most recent Argus files Global Categories - ANSWER -in navigation pane, includes: 1. Manage Indices 2. Manage Inflation Rates 3. Manage Classifications 4. Manage Currencies 5. Manage Interest Rates Manage Indices - ANSWER create new inflation indices Manage Inflation Rates - ANSWER where global inflation rate categories can be created and later applied at the property level Manage Classifications - ANSWER manage the definition of the classification categories Manage Currencies - ANSWER set the currency Manage Interest Rates - ANSWER to set up loan IR and project cash flow and returns after debt, various interest rates, swaps and refinancing scenarios Creating New Portfolio – ANSWER any changes made to a portfolio will be saved. Once the initial portfolio has been created, duplicate that and make changes to the copy property asset types ___ be changed after a property has been created - ANSWER can the Analysis Begin date defaults to - ANSWER the current month and year Property Asset Information includes - ANSWER Name, Analysis Begin, Analysis Years, Currency and Address Portfolio Application Tabs - ANSWER When a property is first created, it will open in ____ mode - ANSWER Edit Reports and inputs screens - ANSWER can be viewed at the same time Save Property - ANSWER saves the updates to the property asset model to the database. If a calculation has been performed, it will save the latest calculation results. Saves as .avux extension Save Property As - ANSWER will save a new version of the selected property asset Save Property to File - ANSWER saves an .avux file without saving to the database Check In/Check Out Property - ANSWER use to restrict who can edit them Discard Changes - ANSWER discards any changes you have made since the last save Ground Leases - ANSWER -properties sub tab to adjust market assumptions for a Ground Lease, model valuation or DCF Units - ANSWER -properties sub tab allows user to track inventory, forecast property unit CF's, model renewal scenarios for tenants, and extract data needed for stacking plans Actuals - ANSWER where we can import or manually enter actual expenses incurred by the property Classifications - ANSWER add classifications to group assets that share similar values Inflation Tab - ANSWER -market tab enter the default inflation rates to be used in each section. Inflation rates are applied annually based on the Analysis Begin date Free rent included - ANSWER base rent, step rent and CPI rent Base Year Stop Formula - ANSWER (Current Yr Exp - Base Yr Exp) X Tenant Net Share Base Year Stop - ANSWER The annualized amount per rentable square foot that a landlord pays toward the operating expenses of a building. Amounts exceeding the expense stop are billed to the tenant. Expense stops are often set following the first year of the lease (i.e. the "Base Year"). LC Formula - ANSWER (Base Rent+ Step Rent - Free Rent)yr1 X LC%) +(Base Rent+ Step Rent - Free Rent)yr2 X LC%).... Market Leasing - ANSWER -under market tab where to enter information on market leasing, expiration, and renewal probability for rent roll a market leasing profile allows the user to - ANSWER put together tenant assumptions to be applied to the rollover tenant areas when the current leases reach their expiration a market leasing profile must be - ANSWER applied to each tenant two purposes of market leasing profiles - ANSWER 1. apply leasing assumptions to a tenant area when the current lease for that space expires 2. space absorption or speculative leasing of a vacant space the blank default market leasing profile - ANSWER can be edited but not deleted to access the rent roll screen when the Input window is activated, press - ANSWER Ctrl + R 100% in Improvements/Commissions Timing field indicates - ANSWER the entire improvements/commissions payment amount should occur in month one of the lease to distribute the improvements/commissions payment across the entire lease term enter - ANSWER the percentage to be paid in each month under "Improvements/Commissions Timing" Upon Expiration: Market - ANSWER renewals are processed based on the renewal probability in the market leasing profile (weighted avg calculations of new and renewal rates for market rents, TI, LC, etc) Upon Expiration: Reabsorb - ANSWER all income for the space will cease when the initial lease term expires. The space goes "dark" and does not lease again. Allows the space to be reabsorbed or re-leased either in full or smaller sections Upon Expiration: Renew - ANSWER Assumes 100% renewal probability for current renewal period. A new speculative lease is creased based on RENEWAL market entries in market leasing profile Upon Expiration: Vacate - ANSWER 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 Upon Expiration: Option - ANSWER Ignores the market leasing profile and will insert a new SPECULATIVE lease line in the Rent Roll. Select only if the specific rent and parameters of the option term are known Upon Expiration: Contract Renewal - ANSWER Ignores the market leasing profile and will insert a new CONTRACT lease line in the Rent Roll. Select only if the specific rent and parameters of the option term are known Upon Expiration: Month to Month - ANSWER Ignores 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 few more months before vacating Upon Expiration: Holdover - ANSWER Ignores 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 lease expiration. If the landlord continues to accept rent payments, the holdover tenant can legally occupy the property. State laws determine how long the holdover tenants rental term is if the landlord accepts payment Base Rent calculation - ANSWER (renewal base rent * %renewal probability) + (new base rent * %new lease probability) New Base Rent - ANSWER the rate that a tenant new to the building would be expected to pay -inflates with MARKET inflation rate Renewal Base Rent - ANSWER the rate that an existing tenant is projected to pay upon renewal of their current lease -inflates with MARKET inflation rate Upon Expiration - ANSWER allows us to select any overrides for the NEXT term or what assumptions we want to use once the first market leasing term is over Property Purchase - ANSWER optional information used to calculated cash on cash metrics and returns like IRR Property Purchase: Costs - ANSWER allows a user to enter multiple closing costs as an amount or a percentage of the total purchase price debt is automatically included in the ____ section if debt has been previously entered - ANSWER Less Debt Resale valuation can be based on - ANSWER NOI adjusted for occupancy and can be further adjusted by the leasing costs in the resale year the resale date can be linked to the - ANSWER defined holding period or independently assigned to a fixed calendar date Resale calculation formula - ANSWER NOI(12 months after sale) /Cap Rate = Gross Sale Price Gross Sale Price - Adjustments = Net Sale Price Present Value tab - ANSWER calculation of a value for the property based upon a discount rate and discounting interval or method to projected cash flows and the property resale value over the period defined by the PV/IRR date and the property resale holding period Discount Rate (APR) - ANSWER used when calculating the discounted value of the operational cash flows and the reversion or property resale Secondary Discount Period lets users look at - ANSWER a snapshot of the analysis by entering in a different PV/IRR date. When the dates are modified, the Cash Flow As Of and Present Value As Of will show the results of the new hold period Increment Discount Rate - ANSWER a user can add/subtract each increment to adjust the current discount rate input Property Resale Audit Report - ANSWER provides you with details of how the resale value of the property is calculated IRR Matrix - ANSWER presents leveraged and unleveraged IRR's for a property based on a range of exit cap rates and going in cap rates _____ and _____ are listed for each going in cap rate - ANSWER purchase price and equity ___ and ____ are listed for each exit cap rate - ANSWER net sales price and net sale proceeds the central purchase price on the y axis of the IRR matrix comes from - ANSWER Total Price field on the property purchase tab Renewal Rent on Market Leasing Profile - ANSWER JUST TYPE IN NUMBER DONT USE DROP DOWN MENU Base Rent Increases - ANSWER Under Tenants-Rent Roll tab, click on elipsis next to base rent. On Rental Income tab, click Add. Then change the base rental income in each year to view individual tenant cash flow report` - ANSWER go to "Tenant Reports" tab, then "Tenant Cash Flow/LPV". Select Individual Tenant from the report drop down menu, and select the tenant you want from the include drop down menu Fixed Step - ANSWER fixed steps are increases in initial rent over the term of a lease that can be a currency amount, currency amt per square unit, or percentage increase when to use fixed step field - ANSWER if the step increase is to occur every lease anniversary at the same step amount. (if the steps are to occur on diff dates or at different amts use the ellipsis on base rent) Base year stop - ANSWER tenant pays net share of all expenses (insurance, taxes and maintenance) over a stop amount to change reporting options from annually to monthly - ANSWER Click report (in ribbon), report options. Then change the "Print Interval" to monthly to view reports on monthly basis. Default start to market leasing profiles - ANSWER "Round Market Leases to start on the first day of the month" A user can change the start date of market leasing profiles to be one day after a previous lease expires under __ - ANSWER Modeling Practices- General Tab. This option only modifies leases that terminate in the middle of the month base year stop -1 - ANSWER use expenses from the previous year to calculate the stop, instead of this years expenses Speculative Lease Status - ANSWER next tenant is moving into a space that is open at the analysis date but are still in lease negotiations (aka no signed contract) available date vs start date - ANSWER available date is the date the space becomes vacant or available. the start date is the day the lease commences and a tenant fills the space if available date and start date differ: - ANSWER an available date that is different from tenant start date will result in absorption & turnover vacancy being reported in the months prior to the lease start date. this vacancy may affect the effective gross revenue line item and will lower Base Rental Revenue because the space is losing potential rent. ex: if available date is 2 months prior to start date, there will be 2 months of absorption and turnover vacancy when using the same available and start date: - ANSWER AE will not report any absorption & turnover vacancy. The program assumes the space is not available, so not potential rent is shown Recoveries- Base Year Stop - ANSWER all recoverable expenses are paid by the tenant based on their proportionate share of the building area over a stop amount,which is the amount of annual recoverable expenses in the base year, or first year of the lease if base year stop is selected but the tenants lease begins prior to the analysis start date ____ - ANSWER the tenants stop will be calculated using the reimbursable expenses in the first year of the analysis Recoveries- Base Year Stop -1 - ANSWER the tenant will pay expenses over their prior year base year stop. The tenant is responsible for their share of any expenses over this amount Recoveries- Base Year Stop +1 - ANSWER the tenant will pay expenses over their base year stop for the year following the lease stop Recoveries- Stop Amount - ANSWER Enter the building stop amount. Tenants will reimburse all recoverable expenses over the building stop amount entered based on their pro rata share of the building Recoveries- Fixed Amount - ANSWER 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 Recoveries- Fixed Amount/Area - ANSWER The rate entered varies based on the amount of area under the lease, not according to the entire building area Recoveries- Market - ANSWER Recoveries will be calculated based on the recovery set for the market leasing profile Expense Groups - ANSWER used to create groups or combos of individual recoverable operating expenses Expense Groups- Percentage Recoverable - ANSWER allows a user to apply a different recoverable percentage to an expense than what was originally entered on the expense tab. Changing the percentage recoverable for a group does not change the entry on the expenses screen Reimburse After - ANSWER allows you to set up a recovery structure where minor tenants reimburse expenses AFTER major (anchor) tenants. The major tenants will reimburse first and then that amount is deducted from overall total of expenses, then the in-line (minor) tenants will reimburse their share of the remaining amount Recoveries Structure- In-Line Steps - ANSWER 1. Create In-Line Recovery (Tenants, Recoveries) 2. Create a New Area Measure (Property, Area Measures) 3. Select Area Measure for In-Line Example (Tenant, Recoveries, Area Measure) 4. Create a Tenant Group to Reimburse After (Tenants, Tenant Groups, add Anchor Tenant) 5. Apply Anchor Tenant Group to Reimburse after Gross Up Expenses - ANSWER the gross up percent will only impact expenses with a variable portion (any expenses less than 100% fixed)