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Property Management EXIT EXAM QUESTIONS
ACCURATE AND VERIFIED ACTUAL EXAM
QUESTIONS WITH DETAILED ANSWERS FOR
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The type of interior alarm that uses a low-frequency sound wave that reverberates in all directions is a(n): a. Pressure plate alarm b. Microwave field alarm c. Ultrasonic alarm d. All answers are correct Correct Answer: c. Ultrasonic alarm Rationale: Ultrasonic alarms use high-frequency sound waves to detect motion within a space. These waves bounce off walls and objects, creating a pattern that is disrupted when someone enters the area. If you suspect a crime is an "inside job," the type of camera you would install would be a(n): a. Covert camera b. Multi-circuit camera c. Indoor-circuit camera d. Mock camera Correct Answer: a. Covert camera Rationale: Covert cameras are hidden and used for discreet surveillance, making them ideal when internal theft or employee misconduct is suspected. No matter when a tenant moves in, rent payments should be made: a. Before the 10th of the month b. On the 1st or 15th of the month c. On the 30th of the month d. All answers are correct Correct Answer: b. On the 1st or 15th of the month Rationale: Rent is typically standardized to be due on the 1st or 15th of each month, regardless of move-in date, to maintain consistency and administrative efficiency. In many population centers, there is a tremendous need for units that consist of a single room and bath, called: a. CIDs
b. HOAs c. SROs d. TLOs Correct Answer: c. SROs Rationale: SROs (Single Room Occupancies) are small, affordable housing units that provide a single room and bath, ideal for low-income or transient populations. The Davis-Sterling Act is a comprehensive body of law that was passed in California to regulate: a. Common interest developments b. Community apartment projects c. Condominiums d. All answers are correct Correct Answer: d. All answers are correct Rationale: The Davis-Stirling Act governs all types of common interest developments in California, including condominiums and community apartments. The Board of Directors of a Homeowner's Association is: a. Appointed by the current property management firm b. Elected by the homeowners as their representatives c. Appointed by the development company d. All answers are incorrect Correct Answer: b. Elected by the homeowners as their representatives Rationale: HOA boards are democratically elected by homeowners to represent their interests and manage the community's affairs. If a court finds that a rule in the CC&Rs is unreasonable: a. The court will refuse to enforce it b. The court will demand it be written c. The court will fine Board of Directors d. The court will enforce it Correct Answer: a. The court will refuse to enforce it Rationale: Courts can invalidate CC&R provisions deemed unreasonable, illegal, or against public policy. Personal problems between homeowners can develop and should be dealt with quickly using a prompt and judicious manner that helps both parties come to a resolution. This is called: a. Suing b. Mediation c. Personal counseling
Microwave field alarms detect intruders by: a. Emitting loud sounds b. Detecting motion via light sensors c. Sending out microwave signals and detecting disturbances d. Monitoring door locks Correct Answer: c. Sending out microwave signals and detecting disturbances Rationale: These alarms use microwave radiation to create a field; any disruption caused by motion triggers the alarm. Mock cameras are primarily used to: a. Record video footage b. Deter crime without surveillance capability c. Replace broken cameras d. Provide thermal imaging Correct Answer: b. Deter crime without surveillance capability Rationale: Mock (or dummy) cameras are non-functional but appear real, serving as a deterrent to potential intruders. Common Interest Developments (CIDs) include all of the following EXCEPT: a. Condominiums b. Planned developments c. Shopping malls d. Community apartment projects Correct Answer: c. Shopping malls Rationale: CIDs refer to residential property types like condos or community apartments, not commercial developments like shopping malls. The primary legal document that outlines a homeowner's rights and responsibilities in a development is: a. Title report b. Grant deed c. CC&Rs d. Mortgage agreement Correct Answer: c. CC&Rs Rationale: Covenants, Conditions, and Restrictions (CC&Rs) govern how properties in a development can be used and what rules owners must follow. A Homeowners Association (HOA) is responsible for all of the following EXCEPT: a. Enforcing community rules
b. Managing common area maintenance c. Representing residents in legal disputes d. Issuing personal loans to homeowners Correct Answer: d. Issuing personal loans to homeowners Rationale: HOAs manage the property and enforce rules but do not act as financial lenders. Remediation in a property management context refers to: a. Legal prosecution of tenants b. Restoring a property after a violation or damage c. Constructing new housing d. Evicting homeowners Correct Answer: b. Restoring a property after a violation or damage Rationale: Remediation involves repairing or correcting property issues such as mold, code violations, or environmental damage. Social services in elderly housing typically include: a. Assistance with daily activities b. Transportation support c. Recreational programs d. All of the above Correct Answer: d. All of the above Rationale: Social services for seniors often cover a broad range of needs to support independent or assisted living. One common issue in managing institutional housing is: a. Too much autonomy b. Over-regulation by private lenders c. Strict compliance with government standards d. Excessive marketing Correct Answer: c. Strict compliance with government standards Rationale: Institutional housing is subject to rigorous guidelines and standards due to public or charitable funding sources. A "CID" in real estate refers to: a. Community Inspection Division b. Commercial Investment Development c. Common Interest Development d. Cooperative Interest Design Correct Answer: c. Common Interest Development Rationale: A CID (Common Interest Development) refers to real estate developments where
Subsidized housing often faces challenges such as: a. High tenant turnover b. Overwhelming demand c. Insufficient funding d. All of the above Correct Answer: d. All of the above Rationale: Subsidized housing can be plagued by multiple systemic issues, including limited budgets, high demand, and frequent tenant transitions. In community living, disputes between neighbors are best resolved through: a. Litigation b. Threats of eviction c. Mediation and communication d. HOA fines Correct Answer: c. Mediation and communication Rationale: Addressing neighbor disputes through communication and mediation helps maintain a cooperative and peaceful community environment. Institutional property managers must be familiar with: a. Government regulations b. Military housing policies c. Nonprofit management principles d. All of the above Correct Answer: d. All of the above Rationale: Institutional management often involves properties owned or operated by public agencies or nonprofits, requiring knowledge of various regulations and missions Which of the following is a major concern in elderly housing management? a. Property tax increases b. Market fluctuations c. Resident safety and health services d. Retail leasing Correct Answer: c. Resident safety and health services Rationale: Elderly housing management must prioritize resident safety, access to health services, and accommodations for mobility or medical needs. The primary function of CC&Rs is to: a. Establish building codes b. Outline loan terms c. Regulate behavior and property use in a development d. Determine tax assessments
Correct Answer: c. Regulate behavior and property use in a development Rationale: Covenants, Conditions, and Restrictions (CC&Rs) are legal documents that set rules for homeowners in developments to maintain uniformity and property value. A multi-circuit camera system is typically used when: a. One camera is being shared by multiple tenants b. You want to alternate video views automatically c. Surveillance is needed in multiple areas at once d. Only mock surveillance is required Correct Answer: c. Surveillance is needed in multiple areas at once Rationale: Multi-circuit cameras allow monitoring of several areas using a network of cameras and circuits feeding into a central system. A mock camera provides what type of security benefit? a. 24-hour video recording b. Night vision capabilities c. Deterrence without actual surveillance d. Facial recognition Correct Answer: c. Deterrence without actual surveillance Rationale: Mock cameras are used as cost-effective crime deterrents; while they don't record, they appear functional to would-be intruders. An indoor-circuit camera is best suited for: a. Monitoring street activity b. Extreme weather conditions c. Indoor surveillance needs like hallways or lobbies d. Covert operations Correct Answer: c. Indoor surveillance needs like hallways or lobbies Rationale: Indoor-circuit cameras are specifically designed for indoor environments where they monitor traffic, access points, and common areas. Restrictive rules in CC&Rs must: a. Be signed by the city mayor b. Be reasonable and enforceable c. Include financial penalties d. Be changed every year Correct Answer: b. Be reasonable and enforceable Rationale: Courts will only uphold CC&R rules that are reasonable, not arbitrary or discriminatory. Unreasonable rules may be invalidated.
b. greater management authority
c. tenant organization
d. all answers are correct - Ans - d. all answers are correct
A divided interest in a unit where a participating owner has exclusive use to the unit during designated period of time is referred to as a:
a. periodic lease
b. time share
c. mobile home residency
d. all answers are correct - Ans - b. time share
Commercial leases can be:
a. modified net leases
b. gross leases
c. percentage leases
d. all answers are correct - Ans - d. all answers are correct
Which of the following qualities would best describe a Class "A'' office building?
a. Architecturally distinctive
b. often a glass tower
c. Usually newer
d. All answers are correct - Ans - d. All answers are correct
An image structure that was built with pride of ownership in mind is called a:
a. trophy building
b. proud building
c. classy building
d. All answers are correct - Ans - a. trophy building
A building that has commercial tenants on the first floor and residential tenants on the upper floors is referred to as a(n):
a. combination building
b. R & D building
c. split-use building
d. all answers are incorrect - Ans - a. combination building
A common remedy for a "sick building" is:
a. Supply oriented
b. Market oriented
c. Transportation oriented
d. All answers are correct - Ans - d. All answers are correct
The appraisal method most commonly used for commercial properties is:
a. the Capitalization Approach because it determines the present worth of future benefits
b. the Comparison Approach because it uses the principle of substitution
c. the Cost Approach because it calculates the cost of the land and building
d. all answers are incorrect - Ans - a. the Capitalization Approach because it determines the
present worth of future benefits Which of the following is a common cause of depreciation?
a. Physical Deterioration
b. Functional Obsolescence
c. Economic Obsolescence
d. All answers are correct - Ans - d. All answers are correct
Retail - Ans - The sale of goods or commodities in small quantities directly to consumers refers to: Urban Pedestrian Mall - Ans - A mall that is open ONLY to foot traffic is called a(n): Are Unlikely To Move Out, Meet All the Lease Terms, Abide by the Property Rules - Ans - Successful tenants can be described as those who: Modified Net Leases, Gross Leases, Percentage Leases - Ans - Commercial leases can be: Symbiotic Relationship - Ans - In a strip center where each store "feeds" the other with customers, for example a women's shoe store next to a beauty salon, this relationship is known as a(n): Factory Outlet Malls - Ans - Malls that feature manufacturer-owned stores who sell off-price merchandise are: Trophy Building - Ans - An image structure that was built with pride of ownership in mind is called a: Gross Leases - Ans - Although net leases can be used for office property, tenants generally prefer leases that detail the exact rental costs, called: Wal-Mart, Target, Kohl's - Ans - A community shopping center might have which of the following as a primary anchor tenant? A Regional Shopping Center - Ans - The type of shopping center that could be in excess of onehalf million square feet and house several department stores and is likely to be a mall is: Which of the following is not an example of "sharing economy"?
In some states, the burden of providing reasonable or below-market rents is shifted from the community to individual landlords through
A. rent control
B. higher development costs
C. increased market values
D. all answers are incorrect - Ans - A. rent control
As land values increase:
A. lot sizes remain the same
B. lot sizes increase
C. lot sizes decrease
D. all answers are incorrect - Ans - C. lot sizes decrease
Landlords should maintain their properties in good condition to avoid:
A. excess expenditures and potential legal
liabilities
B. vacancies excess expenditures
C. vacancies and potential legal liability
D. all answers are incorrect - Ans - C. vacancies and potential legal liability
Many states have limited security deposits to one month's rent by adopting:
A. the Uniform Security Deposits Act
B. the Uniform Residential Landlord and tenant Act
C. the residential Deposits Act
D. all the answers are incorrect - Ans - B. the
Uniform Residential Landlord and tenant Act The landlord has the right to refuse to tenants who cannot prove:
A. adequate income
B. they are employed
C. they own a car
D. they are religious - Ans - A. adequate income
In the real estate market, rents are determined by:
A. fair market value
B. supply and demand
C. comparables
D. all the sewers are correct - Ans - B. supply
Escalator Clause - Ans - A clause which provides for periodic rent increases is called a(n): Zero-Tolerance Drug Clause - Ans - A residential lease might include a: 1978 - Ans - Lead-Based paint has not been utilized in residential properties since: Surrender - Ans - When a lessee agrees to turn over the premises to the lessor at the termination of the tenancy in the same state as received other than normal wear and tear, it is called: The state statute that indicates what documents must be in writing is the:
A. Statute of limitations
B. Statute of frauds
C. Statute of consideration
D. Statute of encryption - Ans - B. Statute of frauds
A contract that transfers possession from an owner to a tenant is called a:
A. Sublease
B. Lease
C. Deed of trust
D. All the answers are incorrect - Ans - B. Lease
A fixed term lease, for example, a one-month vacation rental, would be legally called:
A. An estate for years
B. A periodic tendency
C. A fee simple estate
D. A timeshare lease - Ans - A. An estate for years
When an investor buys the property from the seller and the seller becomes the buyers tenant, which type of lease has occurred?
A. Percentage lease
B. Gross lease
C. Sale-leaseback
D. Rent paying option - Ans - C. Sale-leaseback
In leasing their land, Indian tribes extensively utilize:
A. Corporate leases
B. Percentage leases
C. Net leases
D. Ground leases - Ans - D. Ground leases
