ARGUS Certification Exam Study Guide: 2025 Edition, Exams of Property Law

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ARGUS CERTIFICATION EXAM STUDY GUIDE

2025| BRANDNEW ACTUAL EXAM WITH 100%

VERIFIED QUESTIONS AND CORRECT

SOLUTIONS| GUARANTEED VALUE PACK| ACE

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Holdover - Correct Answer-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 - Correct Answer-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 - Correct Answer-The sales amount which must be achieved prior to the payment of any percentage rent.

Natural Breakpoint - Correct Answer-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 - Correct Answer-If you select this option, percentage rent will be calculated based on total sales volume. Absorption Months v. Months Between Leases - Correct Answer-Input one, AE will calculate the other What must be subtracted out to calculate leasing commission? - Correct Answer-Free Rent True or False: ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation- DCF, ARGUS Asset Management, and ARGUS Valuation-Capitalisation - Correct Answer-True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. - Correct Answer-True In AE, a user can add over 100 properties into a portfolio. - Correct Answer-True

True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - Correct Answer-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 - Correct Answer-All of the above Once a Property Asset Type is selected it cannot be changed (T/F) - Correct Answer-False The Analysis Begin date defaults to the current Month and Year (T/F) - Correct Answer-True Which of the following is a classification type in AE? Select all that apply. a. Property b. Tenant c. Region d. Lease - Correct Answer-a. Property

b. Tenant Multiple properties can be opened simultaneously in ARGUS Enterprise (T/F) - Correct Answer-True What is the extension of a property asset file in ARGUS Enterprise? a. .sf b. .avux c. .aeex d. .aeix - Correct Answer-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 - Correct Answer-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?

The Upon Expiration field within the Market Leasing profile allows us to select any overrides for past terms (T/F) - Correct Answer-False The Gross Sale Price is calculated by taking the NOI to capitalize and dividing it by the ______________________, when using CAP NOI ( Months After Sale). - Correct Answer-Cap Rate Tenant Improvements/Leasing Commissions can be subtracted out of the Resale calculation (T/F) - Correct Answer-True Parameters for the Discount Rate Change Interval on the IRR Matrix report can be changed in the _________________ tab? - Correct Answer- Assumptions Within the Investments tab, the _______________________ tab is used to calculate notes outside of the AE system. - Correct Answer-Other Debt By default, ARGUS Enterprise calculates loans on a 12 month basis (T/F) - Correct Answer-True Enter Other Debt information into the Valuation tab (T/F) - Correct Answer- 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) - Correct Answer- When entering an Available Date prior to the Start Date within the Rent Roll

• Correct Answer- Net - Correct Answer-All recoverable expenses are paid by the tenant based on their proportionate share of the building area. Base Year Stop - Correct 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 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 - Correct Answer-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.

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 - Correct Answer-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 - Correct Answer-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) - Correct Answer-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 - Correct Answer-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 - Correct Answer-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 - Correct 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. Option - Correct Answer-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 - Correct Answer-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 - Correct Answer-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.

The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - Correct Answer-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. - Correct Answer-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. - Correct Answer-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 - Correct Answer-c) Inserts a new contract lease The inflation rates are displayed on which report? - Correct Answer- Property Summary

Which report displays New Market, Renewal Market, and Weighted Average results? - Correct 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? - Correct Answer-The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab.

• Correct Answer-Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - Correct Answer-$ What will LB Corporation pay for reimbursements in 2017? - Correct Answer-The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - Correct Answer-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

What is the default calculation formula for Chargeable Sales? - Correct Answer-Sales Volume - Breakpoint Calculate the General Vacancy Loss using the following assumptions:

• PGR: $800,
• ATV: $20,
• Calculation: 5% of PGR - Correct Answer-[(800,000 + 20,0000)*0.05] - $20,000 = $21, True or False: Additional principal payments can be factored into the loan computations? - Correct Answer-True 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. - Correct Answer-Balloon After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percent in the Modeling Policies window. - Correct Answer-False The default formula for Leasing Commissions is: - Correct Answer-Base Rent + Step Rent + CPI - 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 ________________

• Correct Answer-Reference Only True or False: The percentage of the expense that is eligible to be recovered can be altered for the entire property within the Expense tab - Correct Answer-True What is the default formula for Free Rent? - Correct Answer-Base Rent + Fixed Steps + CPI True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability. - Correct Answer-True True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment. - Correct Answer-True True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen. - Correct Answer-False

Getting Started (Task Pane) - 4 - Correct Answer-Create new files, open recent files, connect to ARGUS website, and access a shared workplace online ARGUS Alerts - Correct Answer-Login to the ARGUS website to receive instant alerts, news, and other information Property Library - Correct Answer-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) - Correct Answer-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) - Correct Answer-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... - Correct Answer-the Property Description

Inputs of Property Description - Correct Answer-Basic property information

• timing area measures, and inflation What is the first window to appear when creating a new file? - Correct Answer-Property Description window Where is the password button found? - Correct Answer-Property Description window Property Type can or cannot be changed once selected? - Correct Answer- CANNOT! Property Timing tab is found where? - Correct Answer-Property Description window Property Timing tab includes: - Correct Answer-Analysis start date, Reporting Start Date, and # of years to Report or End Date Analysis Start Date - Correct Answer-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)