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Unit 8: Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Unit 8: Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Unit 8: Property Management QuestionsAnd Answers With Verified Solutions
100% Correct!!!
What is an example of the types of damages covered by casualty insurance?
A) Medical bills paid for a slip and fall accident by a patron in a grocery store
B) Claims paid for loss of revenue income after a tornado hits a home
improvement center
C) Claims paid to cover costs of a burglary of a 7-11
D) Medical bills paid for an industrial accident by an employee on the job -
ANSWER✔✔ C) Claims paid to cover costs of a burglary of a 7-11
The answer is claims paid to cover costs of a burglary of a 7-11. Casualty
insurance policies include coverage against theft, burglary, vandalism, and
machinery damage. Casualty policies usually are written on specific risks, such as
theft, rather than being all-inclusive.
Vacuuming the hallways and washing the walls is an example of
A) preventive maintenance.
B) corrective maintenance.
C) routine maintenance.
D) marketing maintenance. - ANSWER✔✔ C) routine maintenance.
The answer is routine maintenance. The most frequently occurring maintenance,
including regular cleaning, painting, and minor repairs, is routine maintenance.
,Preventive maintenance helps avoid future problems and expenses. Corrective
maintenance fixes problems after they have occurred.
Janet is a property manager for a large mixed-use space. She wishes to purchase
insurance coverage for her negligence and innocent mistakes. What type of
insurance should she purchase?
A) Casualty
B) Extended coverage
C) Liability
D) Errors and omissions - ANSWER✔✔ D) Errors and omissions
The answer is errors and omissions. Errors and omissions insurance is specialty
coverage to protect against negligence and innocent mistakes and errors.
The frequency and detail of the manager's periodic reports to the owner about the
operations and financial position of the property should be determined by
A) the manager.
B) the Texas Real Estate Commission.
C) the owner and the manager together.
D) the owner. - ANSWER✔✔ C) the owner and the manager together.
The answer is the owner and the manager together. These reports serve as a means
for the owner to monitor the manager's work and for both the owner and the
manager to assess trends that can be used in shaping future management policy.
The manager must keep accurate and complete records to present a clear picture to
the owner.
, When Jeffrey, a property manager, and Pete, a property owner, negotiated a
property management agreement, which provision of the agreement might have
been based on a percentage of gross or net income, a commission on new rentals, a
fixed fee, or a combination of methods?
A) Rental rate
B) Owner's agreement fee
C) Operating expenses
D) Management fee - ANSWER✔✔ D) Management fee
The answer is management fee. The fee the manager receives also could have been
affected by the size of the building and competitiveness in the local market.
The property manager acts as a general agent to
A) the tenants.
B) the Texas Real Estate Commission.
C) the property owner.
D) the broker. - ANSWER✔✔ C) the property owner.
The answer is the property owner. The property manager acts as a general agent to
the owner which, according to the law of agency, means that the property manager
represents the owner in a broad range of matters and may bind the owner to any
contracts within the scope of the manager's (agent's) authority. The property
manager is charged with the fiduciary duties of care, obedience, accounting,
loyalty, and disclosure (COALD). The Real Estate License Act provides that a
license holder who has the authority to bind a party to a lease under a power of
attorney or a property management agreement is a party to the lease.
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