question

Specialization combined with complex planning and development codes

answer

Community association

question

May include housekeeping, meal service, and social event planning

answer

Housing for the elderly

question

Managers must be effective at building community spirit

answer

Mobile home parks

question

Many properties include federally assisted housing programs

answer

Housing for the elderly

question

Homes built in factories meeting HUD specifications

answer

Mobile home parks

question

Typically, corporate property managers are employees of the corporation and NOT independent contractors.

answer

True

question

Homes built in factories and meeting HUD specifications are technically identified as manufactured homes.

answer

True

question

The manager is charged with the fiduciary responsibilities of care, obedience, accounting, loyalty, and disclosure

answer

General agent

question

A statement indicating standardized compensation in the marketplace is prohibited because it would be considered as price-fixing

answer

Antitrust provisions

question

A statement that the property will be shown, rented, and otherwise made available to all persons regardless of race, color, religion, sex, disability, national origin, or family status, and to any class of person protected by state or federal law

answer

Equal opportunity statement

question

The management agreement should be in writing and include compensation provisions that comply with antitrust laws.

answer

True

question

The property manager under the management agreement is usually considered a general agent.

answer

True

question

Tenant improvements are also called add-ons.

answer

False

question

Net operating income (NOI) is that income after all expenses and the debt service have been deducted.

answer

False

question

Discrimination in lending prohibited

answer

Equal Credit Opportunity Act (ECOA)

question

Prohibits any discrimination in the sale, rental, or financing of housing

answer

Fair Housing Act (FHA)

question

Requires a plan for retrofitting a building not in compliance

answer

Americans with Disabilities Act (ADA)

question

Full and equal access for all to facilities

answer

Americans with Disabilities Act (ADA)

question

Consistent financial evaluation

answer

Equal Credit Opportunity Act (ECOA)

question

The Equal Credit Opportunity Act (ECOA) does not prohibit a lender from denying a loan based on a person's receipt of public assistance.

answer

False

question

The property manager typically is responsible for determining whether a building meets the accessibility requirements of ADA, which stands for Access for Disabled Act.

answer

False

question

Personal property and contents coverage

answer

Renter's insurance (HO-4)

question

Coverage to an owner against financial losses resulting from an employee's criminal acts or negligence while performing assigned duties

answer

Surety bond

question

Includes standard types of commercial coverage, such as fire, hazard, public liability, and casualty

answer

Multi-peril insurance

question

Coverage for the results, or consequences, of a disaster

answer

Consequential loss, use and occupancy

question

Commercial tenants need an HO-4 or renter's policy to insure their personal property.

answer

False

question

Property managers are not expected to be experts in all the disciplines necessary to operate a property; however, they are expected to be knowledgeable in many diverse subjects, most of which are technical in nature (such as environmental concerns).

answer

True

question

Which type of insurance coverage insures an employer against MOST claims for job-related injuries?

answer

Workers' compensation

question

All of the following would cause a high vacancy rate EXCEPT

answer

very desirable amenities

question

A guest slips on an icy apartment building stair and is hospitalized. A claim against the building owner for medical expenses may be paid under which of the following policies held by the owner?

answer

Liability

question

A property manager hires a full-time maintenance person. While repairing a faucet in one of the apartments, the maintenance person steals a television set, and the tenant sues the owner. The property manager could protect the owner against this type of loss by purchasing

answer

a surety bond

question

In evaluating the income and debt of applicants and in determining whether to rent to an applicant, the manager

answer

must be consistent

question

Adaptations of property specifications to suit tenant requirements are

answer

tenant improvements

question

The channeling of protected class members to certain buildings or neighborhoods is called

answer

steering

question

Avoid, control, transfer, or retain are the four alternative techniques of

answer

risk management

question

A highrise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?

answer

Consequential loss, use, and occupancy

question

The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of

answer

the building's owner.

question

A property manager who enters into a management agreement with an owner is usually a

answer

general agent

question

Successful property managers do all of the following EXCEPT

answer

keep on good terms with tenants by overlooking infractions of the building rules

question

Property management begins with a

answer

management plan

question

Managers who monitor a portfolio of properties similar to a securities portfolio by analyzing the performance of the properties and making recommendations to the owners of the properties are called

answer

asset managers

question

The Equal Credit Opportunity Act prohibits

answer

discrimination in applying credit-qualifying standards

question

A property manager is offered a choice of three insurance policies with different deductibles. If the property manager selects the policy with the highest deductible, which risk management technique is being used?

answer

Retaining risk

question

An example of complying with the Americans with Disabilities Act could be

answer

installing auditory signals in elevators

question

Homes built in factories meeting HUD specifications are called

answer

manufactured homes

question

Leasing agents are usually

answer

independent contractors working on a commission basis

question

Residential leases are usually expressed as a(n)

answer

monthly rate per unit

question

Asbestos, sick building syndrome (SBS), and lead paint are all examples of

answer

environmental concerns that a property manager may have to address

question

In MOST market areas, rents are determined by

answer

supply and demand factors.

question

Removing existing barriers when readily achievable in public buildings, such as adding Braille markings to elevator buttons, is a requirement of which law?

answer

Americans with Disabilities Act

question

A statement sent to an owner that does not reflect the entire debt service as an expense is called a(n)

answer

profit and loss statement

question

A management agreement is to a property manager as a(n)

answer

listing agreement is to a broker

Maryland Real Estate Principles and Practice v2.1 Exam Prep – Flashcards

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