Argus Certification EXAM QUESTIONS ACCURATE AND VERIFIED ACTUAL EXAM QUESTIONS, Exams of Intellectual Property (IP)

Download Argus Certification EXAM QUESTIONS ACCURATE AND VERIFIED ACTUAL EXAM QUESTIONS and more Exams Intellectual Property (IP) in PDF only on Docsity! Argus Certification EXAM QUESTIONS ACCURATE AND VERIFIED ACTUAL EXAM QUESTIONS WITH DETAILED ANSWERS FOR GUARANTEED PASS | ALREADY GRADED A WITH 150+ QUESTIONS What is the extension of a property asset file in ARGUS Enterprise? a. .sf b. .avux c. .aeex d. .aeix - Ans - b. avux 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 - Ans - d. Edit Property 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 - Ans - c. % of Other 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? a. Copy Across & Down b. Copy to End c. Copy Column to End d. Column - Ans - c. Copy Column to End When calculating a Market Leasing profile with the Upon Expiration set to Renewal, Enterprise ________________________________________. a. Assumes a 0% renewal b. Takes a weighted average c. Assumes the space goes dark d. Assumes a 100% renewal - Ans - d. Assumes a 100% renewal - Ans - 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. None - Ans - No recoveries will be calculated for the tenant. Market - Ans - Select the tenants to be included in the Market calculation. Base Year Stop +1 - Ans - Expense stop will be established by the amount of recoverable 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. Base Year Stop -1 – Ans - Expense stop will be established by the amount of recoverable 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. User Recovery Structures - Ans - 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. Market (Upon Expiration) - Ans - Renewal processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, TI's, LC's etc.) Reabsorb - Ans - 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 Renew - Ans - 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. Vacate - Ans - 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. Option - Ans - 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. Contract Renewal - Ans - 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. Month to Month - Ans - 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. Holdover - Ans - 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. Lease Type: Contract v. Speculative - Ans - 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. Breakpoint - Ans - The sales amount which must be achieved prior to the payment of any percentage rent. Natural Breakpoint - Ans - If you select this option, the percentage rent will be calculated based on the natural breakpoint. The natural breakpoint is the result of adding base rent, step rent, and CPI. Zero Breakpoint - Ans - If you select this option, percentage rent will be calculated based on total sales volume. Absorption Months v. Months Between Leases - Ans - Input one, AE will calculate the other What must be subtracted out to calculate leasing commission? - Ans - Free Rent Once a Property Asset Type is selected it cannot be changed (T/F) - Ans - False When calculating a Market Leasing profile with the Upon Expiration set to Renewal, Enterprise ________________________________________. a. Assumes a 0% renewal b. Takes a weighted average c. Assumes the space goes dark d. Assumes a 100% renewal - Ans - d. Assumes a 100% renewal The Upon Expiration field within the Market Leasing profile allows us to select any overrides for past terms (T/F) - Ans - False The Gross Sale Price is calculated by taking the NOI to capitalize and dividing it by the ______________________, when using CAP NOI (12 Months After Sale). - Ans - Cap Rate Tenant Improvements/Leasing Commissions can be subtracted out of the Resale calculation (T/F) - Ans - True Parameters for the Discount Rate Change Interval on the IRR Matrix report can be changed in the _________________ tab? - Ans - Assumptions Within the Investments tab, the _______________________ tab is used to calculate notes outside of the AE system. - Ans - Other Debt By default, ARGUS Enterprise calculates loans on a 12 month basis (T/F) - Ans - True Enter Other Debt information into the Valuation tab (T/F) - Ans - False When you have a one-time increase, or an increase that happens at different increments or times utilize the Fixed Steps Unit column (T/F) - Ans - When entering an Available Date prior to the Start Date within the Rent Roll - Ans - Net - Ans - All recoverable expenses are paid by the tenant based on their proportionate share of the building area. Base Year Stop - Ans - 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 calculated by the system. If the tenant's lease begins prior to the analysis start date and you select Base Year Stop, the calculated stop will use all reimbursable expenses in the first year of the analysis. Stop Amount - Ans - 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. Stop Amount/Area - Ans - 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. Fixed Amount - Ans - 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. Fixed Amount/Area - Ans - 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. None - Ans - No recoveries will be calculated for the tenant. Market - Ans - Select the tenants to be included in the Market calculation. Base Year Stop +1 - Ans - Expense stop will be established by the amount of recoverable 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. Base Year Stop -1 - Ans - Expense stop will be established by the amount of recoverable 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. User Recovery Structures - Ans - 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. Market (Upon Expiration) - Ans - Renewal processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, TI's, LC's etc.) Reabsorb - Ans - 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 Renew - Ans - 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. Only users with appropriate permissions can access all of the features in the Control Panel. - Ans - True To lock down a specific property and restrict who can edit it, click the _____________ button located in the ARGUS Enterprise Ribbon bar. - Ans - Check Out Property True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - Ans - True The Expense Inflation Rate will be the default percentage for: a) Operating Expenses b) Non-Operating Expenses c) Capital Expenses d) All of the above - Ans - All of the above True or False: Every inflation category must be given a number or it will default to the General Inflation Rate. - Ans - False Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%). - Ans - $7,800 (.6*13000) Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - Ans - $0 Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - Ans - $13,000 What is the Capital Expense amount that will appear on the Cash Flow? - Ans - $63,654??? Free Rent, by default, kick in at the beginning of the _________. - Ans - Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is __________. - Ans - Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - Ans - 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. - Ans - 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. - Ans - 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 - Ans - c) Inserts a new contract lease The inflation rates are displayed on which report? - Ans - Property Summary Which report displays New Market, Renewal Market, and Weighted Average results? - Ans - 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? - Ans - The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab. - Ans - Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - Ans - $0 What will LB Corporation pay for reimbursements in 2017? - Ans - The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - Ans - 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? - Ans - 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. - Ans - 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? - Ans - (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? - Ans - (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? - Ans - Lease Audit ARGUS Alerts - Ans - Login to the ARGUS website to receive instant alerts, news, and other information Property Library - Ans - Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. Toolbar (on the Property Library window) - Ans - Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves Items of Property Library Toolbar (5) - Ans - 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 When creating a ARGUS file it is best to start with... - Ans - the Property Description Inputs of Property Description - Ans - Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - Ans - Property Description window Where is the password button found? - Ans - Property Description window Property Type can or cannot be changed once selected? - Ans - CANNOT! Property Timing tab is found where? - Ans - Property Description window Property Timing tab includes: - Ans - Analysis start date, Reporting Start Date, and # of years to Report or End Date Analysis Start Date - Ans - Sets the date at which ARGUS Valuation - DCF calculations will occur. For example, month 6 is relative to the analysis start date (not Reporting Start Date) All entries that begin with a "relative" start date will be relative to which date? - Ans - Analysis Start Date Reporting Start Date - Ans - - Sets the date at which reports will begin - Does not alter the timing of base calculations in the program Reporting Start Date must fall (where) relative to the Analysis Start Date - Ans - on or after the Analysis Start Date Analysis of up to (xx) years may be conducted - Ans - 40 If the analysis begins midyear... - Ans - ARGUS will calculate a stub year with the partial year in the first year Default unit of Area Measures is? - Ans - Square Feet When entering a inflation percentage that is less than 1%, it must be in what form? - Ans - decimal Percentages of inflation may be entered as... - Ans - positive or negative whole numbers, or a decimal If an inflation field is left empty... - Ans - it will default to the General Inflation Rate Why is inflation in year 1 never available? - Ans - Because it does not occur until the beginning of the 2nd year Inflation input into Year 2 will apply to which years numbers? - Ans - Year 1 When entering the Property Size, enter the (blank) area - Ans - net rentable Default inflation is? - Ans - 0% unless changed The main screen that displays once a file has been created or opened - Ans - Executive Dashboard Executive Dashboard - Ans - 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? - Ans - Icons on the tool bar as well as the links in grey type The Globe and Magnifying Glass icon - Ans - Is a link to view the property in Google Maps Where are the Export, Print, Calculate, and Pause button located? - Ans - Bottom right hand corner Where is the import Graphic icon located? - Ans - Upper left corner of the executive dashboard The Import Graphics icon - Ans - Import images and will be included on each new property created with that template To create or modify a dashboard select the (blank) - Ans - Dashboard template icon Where is the Dashboard Template icon located? - Ans - The toolbar of the executive dashboard Net reimbursements - Ans - Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Base Stop - Ans - Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - Ans - Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - Ans - True Rent Abatement - Ans - Number of months of free rent for the current lease STARTED AT THE BEGINNING OF THE LEASE TERM Leasing Costs - Ans - Consist of Tenant Improvements and Leasing Commissions Tenant Improvement default unit is... - Ans - $/SqFt Leasing Commissions default unit is... - Ans - Percentage of a tenant's total rent Market Leasing Assumptions are used for what purpose? - Ans - To control what happens to the contract lease after it expires and goes to market Market Leasing Assumptions can be accessed from (2) - Ans - Executive Dashboard(Market drop down menu, market leasing assumptions) or from the Rent Roll Upon Expiration drop-down menu - Ans - Control how the program will blend the MLA numbers Market (Upon Expiration selection) - Ans - Weighted average of new and renewal numbers Formula for the Market Rate Upon Expiration calculations - Ans - [Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate Possible Options of the Upon Expiration drop-down menu (6) - Ans - Market, Renew, Vacate, Option, ReAbsorb, Non-Contiguous Yield Menu contains (4) - Ans - Property Purchase Price, Property Resale calculation, Present Value Discount rate, and Debt Financing Once revenues, expenses, and costs have been entered the next step is... - Ans - to enter the purchase price along with a resale calculation Direct Capitalization is useful for brokers because - Ans - they typically determine the value of the property using the "going in" cap rate The Capitalization Period - Ans - is a 12-month period of income into which the cap rate is divided Direct Cap Capitalization Options (3) - Ans - Year One, Year Starting in Month, First 12 months Capitalization Period: Year One - Ans - Use the first calendar year of the analysis period Cap Period: Year Starting in Month x - Ans - select a specific month within the 12 month period Cap Period: First 12 Months - Ans - use the first 12 months of the analysis Difference between Cap Period Year One and First 12 Months - Ans - Is when the first year of the analysis is less than 12 months (ex: 1/12 - 6/12) True of False: Extra months are always placed at the beginning of the analysis - Ans - TRUE How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA) - Ans - Select the Calculate a Blended Value (ONLY ASIA) Property Resale window - Ans - Where resale assumptions are made Ways to calculate the resale at the end of the analysis (3) - Ans - Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years Capitalize NOI - Ans - Divides the NOI in the final analysis year by the cap rate Gross Proceeds from Sale = (formula) - Ans - NOI/Cap Rate Apply Rate to following year income (Property Resale) - Ans - Resale proceeds will be calculated using the following year of the analysis Calculate Resale for All Years (Property Resale) - Ans - Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - Ans - Bottom right icon of the Property Resale screen Cap Rate Matrix - Ans - 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 - Ans - Pg. 46