Texas Real Estate Property Management Final Exam 2024-2025: 240 Questions and Answers, Exams of Business Systems

Download Texas Real Estate Property Management Final Exam 2024-2025: 240 Questions and Answers and more Exams Business Systems in PDF only on Docsity! TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES Which organization initiates research that anticipates emerging land use trends and issues, proposing creative solutions based on that research. ULI BOMA NAIOP IREM - correct answer ULI Which organization has the Accredited Resident Manager designation? IREM BOMA NAIOP ULI - correct answer IREM Which organization would you turn to in order to obtain rental forms for Texas apartment housing? TAIOP TOMA TAA TAR - correct answer TAA Which of the following is included in the calculation of cash flow? Mortgage Payments Operating expenses Capital expenditures All of the above - correct answer All of the above Which of the following factors is unimportant in determining the amount of rent a landlord could charge? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES Interest rates Location of property Condition of property Corporate entity - correct answer Corporate entity What is the purpose of the capital reserve? To provide a place to keep security deposits To provide money to pay insurance premiums To provide funds for deferred maintenance To reserve units for preferred tenants - correct answer To provide funds for deferred maintenance What functions would a newsletter perform in a marketing plan? Increase visibility Market services Develop leads All of the above - correct answer All of the above Which of the following would be a good source for finding new clients? Real estate developers REO departments Trade Associations All of the above - correct answer All of the above What is a blog? a tweet TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES CAM recoveries Base rent Property taxes Late fees - correct answer Property taxes Which one is a possible source of revenue for an apartment complex? Cell phone tower Laundry facilities Percentage rent Interest on security deposits - correct answer Laundry facilities What is the purpose of a market survey? It shows the owner you are working on his property It helps you to understand the market and communicate your market knowledge to the owner It helps you stay ahead of your competition It helps identify possible new property management opportunities - correct answer It helps you to understand the market and communicate your market knowledge to the owner Which of these statements is true about an ITIN? Like a SSN, can be used for identification purposes It is used for tax reporting purposes only It can be used for authorization to work in the U.S. It can be used to claim Social Security benefits - correct answer It is used for tax reporting purposes only Rather than issuing a W-2 to a consultant, a business owner who paid a consultant for services would issue a _____ at the end of the year. 1099 TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES W-9 W-7 EIN - correct answer 1099 An employer must pay FUTA to workers if their wages are more than __________per year $5,000 $1,500 $2,000 $10,000 - correct answer $1,500 If you hire someone as an employee, you must pay all but which of the following? social security tax Medicare tax unemployment tax excise tax - correct answer excise tax Which of the following would indicate a person is an employee rather than an independent contractor? The person receives health insurance benefits. The person is working under written contract. The work being performed is for a service to the company. The person performing the work sets his own hours. - correct answer The person receives health insurance benefits. Which of the following would not be a primary function of a property manager? To prepare a CMA To maintain the property To establish a budget TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES To develop reserves - correct answer To prepare a CMA 1 of 3When a person is acting as a property manager for another party, is a license required if no fee is charged? Yes No Yes, if the other party is a relative No, if the other party is a relative - correct answer No Which of the following activities would not be considered "assisting" for purposes of the RELA? A junior associate calls a client of his boss to discuss a lease negotiation. A junior associate calls a tenant with a proposal to lease space. A junior associate helps his boss to locate a corner lot for a client to lease. A junior associate collects a security deposit. - correct answer A junior associate collects a security deposit. What does federal law prohibit landlords who lease housing built prior to 1978 to do? Provide a lead hazard information pamphlet to renters Include lead notification language in rental forms Conceal any known lead-based paint hazards Maintain records of compliance for three years - correct answer Conceal any known lead- based paint hazards What type of coverage includes fire, riot, vandalism, theft, glass breakage, lightning, hail, smoke and explosion? Dwelling policy Liability coverage Crime policy and fidelity bond TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES That the owner is not aware of any violation of any ordinance related to the property - correct answer That the pool enclosure complies with the law If a tenant purchases a property from the owner, the broker's fee is usually ___________. deducted from the management fee a percentage of the sales price a flat fee negated - correct answer a percentage of the sales price Under the management agreement, how many days prior to the end of the term must notice of termination be given? 30 60 90 0 - correct answer 30 What is the biggest expense in managing a resort? maintenance housekeeping security replacing household items - correct answer housekeeping Which of the following additional responsibilities would the property manager of a ranch have? soil management water management labor management all of the above - correct answer all of the above Chapter 82 of the Texas Property Code applies to which of the following? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES residential condominiums office condominiums commercial condominiums all of the above - correct answer all of the above A "bump" clause is synonymous with which other clause? percentage rent holdover option to purchase escalator - correct answer escalator What typically happens to the improvements at the end of a ground lease? The landlord removes them The tenant must remove them The landlord will own them The tenant keeps them - correct answer The landlord will own them What is a non-disturbance clause? It is a clause in a lease that says a tenant cannot be evicted due to a foreclosure against the property It is a lease that says the tenant must not be disruptive to other tenants It is a clause that says a landlord cannot evict a tenant Correct: False It is a clause that establishes quiet hours - correct answer It is a clause in a lease that says a tenant cannot be evicted due to a foreclosure against the property In a gross sales calculation from a percentage lease, which of the following would not be included in the calculation? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES Sales from a tenant's satellite office Sales from a kiosk within the tenant's leased premises Sales made by phone to the tenant's store Sales occurring as a result of a phone call to the tenant's store - correct answer Sales from a tenant's satellite office What is NOT included into Landlord Remedies? Terminate the Lease Demand payment of all past and future rent through the end of the Lease Term Obtain a security interest in Tenant's possessions Abandon the Premises - correct answer Abandon the Premises When a tenant defaults on a lease, the landlord can do all of the following except: Terminate the lease Evict the tenant immediately Demand payment of all past and future rent through the end of the lease term Seek to collect any unamortized costs of improvements made by the Landlord - correct answer Evict the tenant immediately The listing agreement and the representation agreement expressly state what? That a broker does have the authority to bind the owner to an agreement. That a broker does not have the authority to bind the owner to an agreement. That the broker cannot sign any documents whatsoever. That the landlord or tenant cannot sign any documents whatsoever. - correct answer That a broker does not have the authority to bind the owner to an agreement. Which of the following is a true statement? The move-out date is established by the tenant TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES How many days grace period does a tenant get before late charges begin to accrue? 0, unless shown differently in the TAR Lease 3, unless shown differently in the TAR Lease 5, unless shown differently in the TAR Lease 30, unless shown differently in the TAR Lease - correct answer 0, unless shown differently in the TAR Lease What is the function of the Inventory and Condition Form? To request repairs To put the parties on notice of any defects in the property A & B Neither A nor B - correct answer To put the parties on notice of any defects in the property In order for a lease to automatically renew, what is required? Language in the lease providing for automatic renewal All leases automatically renew unless the lease states otherwise A notice within 30 days of termination that the lease will automatically renew Leases cannot automatically renew - correct answer Language in the lease providing for automatic renewal A _________ is a promise to pay the debt of another subordination guaranty mortgage note - correct answer guaranty to hold it while the application is being processed and signs the Agreement for Application Deposit and Hold, when is the deposit refunded? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES When the application is approved and the tenant signs the lease When the application is approved, regardless of whether the tenant signs a lease Never, it is non-refundable None of the above - correct answer When the application is approved and the tenant signs the lease If an landlord knows there is lead-based paint on the property, which of the following is the landlord's duty with respect to the tenant? Remediate the lead-based paint Give a discount on the rent Provide records and reports to the tenant Allow the tenant to terminate the lease if the tenant suffers damages as a result of the lead- based paint - correct answer Provide records and reports to the tenant From a tenant relations standpoint, what should a property manager do if a tenant has not paid the rent on time? Call the tenant. Note the file. Charge a late fee. All of the above. - correct answer All of the above. If the landlord evicts a tenant as a consequence of the tenant's reporting the landlord to the building inspector, it is called ____________. retaliatory eviction constructive eviction eviction bad faith - correct answer retaliatory eviction Randy Renter wants to install hardwood flooring in his unit at his expense. Should you let him? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES No, a tenant should not make structural changes. Yes, but only if a licensed contractor does the work. No, it could diminish the value of the unit. No, it would create inequality in the units. - correct answer Yes, but only if a licensed contractor does the work. Chapter 92 defines "dwelling" to exclude which of the following? Leases to more than one tenant Temporary living space Individual rooms Permanent residences - correct answer Temporary living space If the landlord fails to comply with a writ of restoration of a utility service, what are the consequences? Contempt of court Injunctive relief Actual damages Punitive damages - correct answer Contempt of court Randy Renter and his wife have 3 children, 10, 12, and 19. They are renting a two bedroom unit. Randy asks you if he can bring his elderly parents to live with them. Does the Property Code permit Randy to add his parents? Yes Yes, but only if he adds a bathroom No No, unless one of the bedrooms is a converted den - correct answer Yes What is the penalty for failing to provide a written description of deductions from the security deposit in a commercial lease? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES one month's rent plus $500, damages, costs and attorney's fees three month's rent no damages; the penalty is jail time for the landlord - correct answer one month's rent plus $500, damages, costs and attorney's fees Buildings with an elevator and four or more units constructed after _______ must be ADA compliant. 2000 1995 1974 1991 - correct answer 1991 Which of the following terms refers to directing a buyer away from a certain area because of race, color or national origin? blockbusting steering redlining bootlegging - correct answer steering Why should a broker display the Equal Housing Opportunity Poster in the office? To promote goodwill To avoid a fine To avoid criminal charges To comply with Federal Housing Laws - correct answer To comply with Federal Housing Laws Under what circumstances may a landlord remove the contents of the premises from exempt property? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES If the lease authorizes it Only when seizure can be accomplished without a breach of peace When the tenant has abandoned the property Never - correct answer When the tenant has abandoned the property Which of the following items are exempt from a landlord's lien? the family television WII game a motorcycle the beds - correct answer the beds How long does the landlord have after the sale to mail the tenant the excess proceeds of the sale? 10 days 48 hours 5 days 30 days - correct answer 30 days Which of the following is not required if a landlord plans to sell the seized non-exempt property of a tenant? Notice A written lease provision authorizing the sale An order from the court A 30 day waiting period after notice - correct answer An order from the court The Austin Hill case deals with ____________ landlord liability for unsafe conditions mitigation of damages TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES tenant breach Federal Fair Housing Laws - correct answer mitigation of damages Randy Renter moves out in the middle of the night, leaving the landlord without a tenant. Randy leaves the landlord the rent due through the day of vacating. What duty does the landlord owe Randy? None, Randy has breached the lease None if the lease has stated that the landlord has no duty to mitigate The landlord must notify Randy that the landlord is accelerating the rent The landlord must mitigate damages by trying to relet the premises - correct answer The landlord must mitigate damages by trying to relet the premises When determining whether the landlord repaired a condition within a reasonable time, all of the following will be a factor considered by the courts except? The date on which the landlord received the notice The current rental rate the tenant is paying The severity of the condition The availability of materials - correct answer The current rental rate the tenant is paying The landlord has a duty to repair or remedy a condition caused by: The tenant A lawful occupant in the tenant's dwelling Normal wear and tear A member of the tenant's family - correct answer Normal wear and tear How much time has the landlord to provide a written explanation for delay in performance until the burden of proof shifts to him/her? 24 hours 3 days TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES With regards to minimum requirements, how thick should a carpet pad be? At least 5/8" inch in thickness At least 3/16" inch in thickness At least 15/16" inch in thickness At least 9/16" inch in thickness - correct answer At least 9/16" inch in thickness How should you pay for emergency repairs? Credit card Line of credit Emergency fund Home equity loan - correct answer Emergency fund To which of the following would a mechanic's lien not attach? A building Fixtures Improvements Personal property - correct answer Personal property What is the optimal pool temperature? 80 degrees Fahrenheit 70 degrees Fahrenheit 78 degrees Fahrenheit 82 degrees Fahrenheit - correct answer 78 degrees Fahrenheit What is the bare minimum amount of insulation that should be installed in ceiling areas? 18 inches TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES 12 inches 10 inches 30 inches - correct answer 12 inches Who is expected to prepare the budget for the property? The owner The leasing agent The manager's boss The property manager - correct answer The property manager What does the owner of a property want the most? Happy tenants Good building cosmetics Good return on investment Reasonable management fees - correct answer Good return on investment Which of the following statements is true? It is the manager's fiduciary duty to the owner to keep expenses under control It is the manager's fiduciary duty to the tenants to keep expenses under control Since expenses are a direct pass-through to the tenant and not the owner, the manager is not concerned with cost control A manager must watch expenses in order to maximize the owner's income - correct answer It is the manager's fiduciary duty to the owner to keep expenses under control Which of the following is correct regarding the commencement and occupancy date? They must be set by the tenant. They must be the same date. They must be set by the landlord. TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES They may not be the same date. - correct answer They may not be the same date. Which statement is true regarding a tenant holdover? The tenant can claim to be a tenant-at-will and remain in the space at the current rent. After the landlord delivers notice, the tenant has ten days to vacate the premises. Landlord will notify tenant of the holdover status but does not hold any other remedies if the tenant continues to pay rent. Unless an agreement can be reached, the tenant will be required to pay holdover rent at 1.5 times the face rent from the time the holdover begins. - correct answer Unless an agreement can be reached, the tenant will be required to pay holdover rent at 1.5 times the face rent from the time the holdover begins. Parties to the Lease can be all of the following except An out-of-state corporation An individual/sole proprietor A minor An LLC or Limited Partnership - correct answer A minor Who would obtain an E & O policy? doctors architects property managers lawyers - correct answer property managers An "all risk" insurance policy covers all perils except ________ natural disasters man-caused damage excluded perils TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES IREM ICSC NAIOP - correct answer ICSC The NAA is an advocate for _______________ homeless shelters quality multifamily housing education land use reform - correct answer quality multifamily housing Candidates for a CPM certification must meet the criteria established by: SIOR ULI IREM NAIOP - correct answer IREM What should a landlord do if it becomes necessary to reduce rent to fill vacancies? Reduce the length of lease terms Add incentives Increase the length of lease terms Reduce amenities - correct answer Reduce the length of lease terms If there is a person who works for both the property owner and the property manager, what document defines whose employee the person is? The employment contract The management agreement The corporate by-laws TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES The rental agreement - correct answer The management agreement Which of the following expenses are NOT included in the calculation of cash flow? Operating expenses Depreciation Mortgage payments Capital expenditures - correct answer Depreciation Who maintains the physical integrity of the property and develops a plan for building adequate reserves for replacement? The broker The property manager The landlord The seller - correct answer The property manager Under which of the following situations would rent be highest? At a time when interest rates are low At a time when banks are not lending money At a time when there is a surplus of rental units in the area At a time when the economy is robust - correct answer At a time when banks are not lending money Marketing involves finding customers and _________. selling to them conducting research distributing product branding - correct answer selling to them What is the number one marketing tool for businesses? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES advertising social networking press releases giveaways - correct answer social networking What is the most important thing to do when implementing a marketing plan? be flexible re-evaluate regularly stay with the plan long enough for it to work get professional help - correct answer stay with the plan long enough for it to work What advantages does email offer compared to a phone call? An email provides a record of the communication. An email is quicker. An email is less formal. An email is cheaper. - correct answer An email provides a record of the communication. When might an email be used to solve a problem rather than the phone? Never If you cannot reach the person by phone after repeated attempts Most of the time If you have never met the person - correct answer If you cannot reach the person by phone after repeated attempts What is the purpose of using a Visitor Rating Form? To find out what other houses the visitors have seen TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES BOMA IREM Black's Guide ICSC - correct answer IREM The current name of the state agency charged with overseeing and providing workforce development is __________ Texas Employment Commission Texas Workforce Commission Texas Employment and Workforce Commission Texas Real Estate Commission - correct answer Texas Workforce Commission Joe Jones is an attorney who finds a tenant for a rental property for his mother. He receives no commission or other consideration for helping his mother. Does Joe need a broker's license? No, because he is an attorney No, because he received no compensation Yes, he procured a tenant for another person Yes, because he is an attorney - correct answer No, because he received no compensation How often must the Meetings of the association be held? Every day Three times a week At least once a year Every three years - correct answer At least once a year The primary issues with managing single-family residence are maintenance and _________________ TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES tenant qualification pets rent collection turnover - correct answer tenant qualification Which of the following refers to the rules created by the Unit Owners' Association (UOA)? Arbitrary Capricious Random Fixed - correct answer Fixed What must the UOA repair if damaged or destroyed? Any portion if the condominium is terminated Any portion of the condominium even if it violates city code. Any portion even if 80 percent of the unit owners vote not to rebuild Any portion of the condominium for which insurance is required - correct answer Any portion of the condominium for which insurance is required Which of the following is not true about condominiums? Each owner pays his own taxes The owners own the units The owners own a share of the common elements If one owner fails to pay his mortgage, the entire property can go into foreclosure - correct answer If one owner fails to pay his mortgage, the entire property can go into foreclosure Which of the following is not true about a net lease? They are usually associated with commercial tenancies The tenant pays the insurance TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES They are usually associated with a residential lease They pass through costs to the tenant - correct answer They are usually associated with a residential lease Which of the following is not a freehold estate? Fee Simple Fee Tail Tenancy at Will Life Estate - correct answer Tenancy at Will What qualification documents are not needed for a start-up company? Business Plan Commerical Lease Addendum Personal Guaranty Form Personal Financial Statement - correct answer Commerical Lease Addendum Where should a tenant's requirements for "up-fits" or "improvements" be set out? By oral agreement In the lease In the mortgage In the listing agreement - correct answer In the lease The landlord must mail the tenant the security deposit and an itemized accounting of deductions no later than _____ days after surrender or abandonment. 30 60 45 90 - correct answer 30 TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES Hamster Bee All of the above - correct answer All of the above How to lose a good tenant? Avoid raising the rent when it comes time to renew. Raise the rent when it comes time to renew. Keep the property in excellent repair and cosmetically appealing condition. Pay attention to issues raised by good tenants and respond to maintenance requests promptly. - correct answer Raise the rent when it comes time to renew. What is the quickest a landlord can evict a tenant once a lease is terminated if no bond is posted? One week Two weeks Three weeks Four weeks - correct answer Three weeks A constable must give a tenant _____ notice prior to executing on a Writ of Possession. 48 hours 24 hours 7 days 3 days - correct answer 24 hours Under which of the following circumstances would a tenant who is a member of the armed forces be permitted to terminate a lease? The tenant is deployed for a period of over 30 days TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES The tenant is deployed for a period of over 6 months The tenant is deployed for a period of over 90 days The tenant is deployed for over a period of 60 days - correct answer The tenant is deployed for a period of over 90 days A landlord who does not provide a written description of damages when deducting from the security deposit is liable for_______ A fine A $1000 penalty Attorney's fees punitive damages - correct answer Attorney's fees The landlord has 30 days from ____________to refund the security deposit The date of the landlord's notice The date established in the lease The date the tenant gives notice of termination The date the tenant surrenders the premises and provides a forwarding address - correct answer The date the tenant surrenders the premises and provides a forwarding address Which of the following is a necessary element of a good "move out letter"? Cleaning requirements Information about the inspection Information about the deposit All of the above - correct answer All of the above During a final inspection of Randy Renter's apartment, Randy asks Peter Property Manager if Randy will get his full deposit back. What should Peter say? He should tell him the truth based upon an estimate TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES He should not tell Randy anything about the deposit He should tell Randy he will provide him a summary of the deductions after he has had a chance to review his notes He should tell him he will get his full deposit back - correct answer He should tell Randy he will provide him a summary of the deductions after he has had a chance to review his notes A landlord who fails to refund an application fee is liable for 3x the amount of the application deposit plus $____ 500 200 100 1000 - correct answer 100 Which of the following is an unprotected class? Race National origin Familial Status Age - correct answer Age Must a landlord permit someone with a handicap to install grab bars in a bathroom? No, it is not reasonable yes, if the tenant returns the unit to its original condition upon vacating yes and the landlord must pay for the change no, handicap is not a protected class - correct answer yes, if the tenant returns the unit to its original condition upon vacating Which of the following is true with regard to the Austin Hill case? TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES The landlord's option to relocate tenant to a new building currently under construction. The tenant's option to relocate its business elsewhere. - correct answer The option the landlord holds to relocate the tenant to another space of comparable size, and pay the relocation expenses. What kind of policy compensates the insured for lost income while repairs are made to the property? business interruption property insurance casualty insurance coinsurance - correct answer business interruption Risk can be managed by avoidance, reduction, sharing and ____________ retention payment absorption rejection - correct answer retention If a property is going to be vacant for a prolonged period, which of the following steps is most important to be taken? Make sure the utilities remain on board up the property turn out lights put up "no trespassing" signs - correct answer board up the property Which method of paying rent is favored by landlords? cash credit card TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES automatic draft check - correct answer automatic draft Which of the following is excluded from the Property Code subchapter on Security Devices? a mobile home a single family house an office a hotel room - correct answer a hotel room Under what circumstances may a landlord require a tenant to pay for repairs to a security device? Due to normal wear and tear Anytime the repair is necessary due to the tenant's actions Anytime if the lease provides for it Anytime the tenant causes the damage and the lease provides that the tenant must pay - correct answer Anytime the tenant causes the damage and the lease provides that the tenant must pay Randy Renter took possession of a rental unit from Joe Jones, who was a holdover tenant under a lease. The landlord has a cause of action against Joe for __________ - correct answer unlawful detainer A commercial landlord's lien is enforceable until _________ after the day the tenant abandons the building - correct answer one month A ______________ policy covers theft of tangible assets Crime Dwelling Fire Home - correct answer crime A fire door cannot_______________ TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES be locked closed near the exit red - correct answer be locked __________________ sign in an owner's yard is a type of advertising is relatively inexpensive, visible 24/7, and effective A For Sale Yard Garage Sale - correct answer A For Sale A landlord is _______________ required to give the tenant a description and itemized list of deductions from the security deposit, if the tenant owes rent and there is no controversy concerning the amount of rent owed - correct answer NOT A person who receives military orders to deploy for _______________ may NOT terminate the lease under the military provisions 60 days 1 year 30 days 2 years - correct answer 60 days A tenant is 100% responsible for damage to doors, windows and screens If a large tenant moves out and is on a flat rate lease, this will NOT affect your _____________ - correct answer compensation If a tenant files a complaint, a landlord must wait _________________ before filing an eviction proceeding, except for the grounds stated by Section 92.332 - correct answer six months If the occupants have vacated the property, they are considered to have _______________________ the property in the Landlord's reasonable judgement - correct answer surrendered TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES What is the most important thing to do when implementing a marketing plan? - correct answer stay with the plan long enough for it to work Which type of tenant will be most interested in the co-tenancy of the property? - correct answer Retail tenants are interested in the co-tenants of a property, for reasons of competition and of the ability to draw customers. Which of the following is the right description of a triple net lease? The landlord will want to put a rent increase in the lease for each renewal term. The landlord will pass through to the tenants of the building the landlord's insurance, taxes and operating expenses for the common area. The landlord can charge a tenant or seek reimbursement from a tenant for a fine imposed by the government. The landlord is allowed to remove and store any property of a tenant that remains on premises that are abandoned. - correct answer The landlord will pass through to the tenants of the building the landlord's insurance, taxes and operating expenses for the common area. What interest does a time share owner have in the time share unit? fee simple leasehold undivided A or B - correct answer A or B They can be fee simple OR Leasehold What type of senior facility has limited medical assistance? - correct answer Assisted living In subsidized housing, how much of a subsidy does the tenant receive? - correct answer NONE A housing subsidy is paid directly to the landlord by the public housing authority on behalf of the tenant. The tenant receives nothing. What happens to tenant on holdover situations? - correct answer The tenant becomes a tenant at will Which one of the following is not an alternative to a Personal Guaranty? Prepaid rent TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES An increased security deposit Leaving only the corporation on the hook A Letter of Credit - correct answer Leaving only the corporation on the hook In order to be an indication of abandonment, the tenant must have been in default on the payment of rent for at least___ days. - correct answer 5 days If a landlord has parking rules for a property, he must do all of the following except ___________. have the tenant sign a copy of the rules include a copy of the rules in the lease agreement signed by the tenant provide a copy to the tenant upon move-in provide a copy to the tenant before the lease is signed - correct answer provide a copy to the tenant upon move-in Which of the following is a true statement in the event of a death of a tenant? The landlord is not permitted to deduct anything from the security deposit for repairs prior to returning the security deposit to the designated person. Only if the deceased tenant was a sole occupant of the rental dwelling can a landlord remove and store all the deceased tenant's property The landlord must turn over possession of the property to the sheriff The landlord may keep the deceased tenant's security deposit - correct answer Only if the deceased tenant was a sole occupant of the rental dwelling can a landlord remove and store all the deceased tenant's property Under which of the following circumstances would a tenant who is a member of the armed forces be permitted to terminate a lease? - correct answer The tenant is deployed for a period of over 90 days All of the following are required disclosures under Chapter 92 except ___________. the name of the owner of the property being rented the address of the owner of the property being rented TEXAS REAL ESTATE PROPERTY MANAGEMENT FINAL EXAM 2024-2025 ACTUAL EXAM 240 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES the name of the management company if the office is off-site from the rental unit the name of the owner of the management company - correct answer the name of the owner of the management company An administrative law judge may impose a penalty for up to $____ if two or more violations of Fair Housing Laws occur within 7 years - correct answer $50,000 Which of the following is true with regard to the Austin Hill case? - correct answer It allows parties in a commercial lease to provide that the landlord does not have a duty to mitigate If a tenant recovers property a landlord has seized, it is called _________. - correct answer replevy How often should the electrical systems be inspected by a licensed electrician? - correct answer Every 3 to 5 years How often should the parking-garage surfaces be cleaned? - correct answer Twice a year / every 6 months Which of the following would not be a component of a building assessment? Profit and loss statement Preventive maintenance program Deferred maintenance program Capital forecast - correct answer Profit and loss statement A profit and loss statement is a summary of the financial performance of a business over time and has nothing to do with a building assessment. The most efficient exterior lighting is________________. - correct answer Fluorescent lighting is the most effective choice for many industrial and exterior lighting applications. What kind of policy compensates the insured for lost income while repairs are made to the property? - correct answer business interruption In a case where a broker procures a subtenant for the lessee, any commission arrangement must be made between the sublessee, sublessor and the broker. This is accomplished via which addendum? - correct answer Commercial Sublease Addendum for Broker's Fee If after an attempted break-in, a tenant requests the landlord to repair a security device, how long does the landlord have to repair it? - correct answer 72 hours