CPM Property Management Fundamentals 1

Question 1

Which organization awards the Certified Property Manager (CPM) designation in the US?

Accepted Answer

Institute of Real Estate Management (IREM)

Answer

National Apartment Association (NAA)

Answer

Building Owners and Managers Association (BOMA)

Answer

National Association of Realtors (NAR)

Question 2

A property manager's PRIMARY fiduciary duty is owed to whom?

Accepted Answer

The owner/client

Answer

The tenants

Answer

The local municipality

Answer

The lender

Question 3

What is the term for a property management agreement that outlines the scope of authority given to a manager?

Accepted Answer

Management contract

Answer

Lease agreement

Answer

Agency disclosure

Answer

Letter of intent

Question 4

Which property type is generally characterized by income-producing residential units rented to multiple tenants?

Accepted Answer

Multifamily residential

Answer

Single-family residence

Answer

Industrial warehouse

Answer

Special-purpose property

Question 5

What does 'highest and best use' mean in property management context?

Accepted Answer

The legally permitted, physically possible, financially feasible use that produces maximum value

Answer

The use that generates the highest rent

Answer

The use preferred by current tenants

Answer

The use with the lowest operating costs

Question 6

Which of the following best describes 'property management'?

Accepted Answer

The process of overseeing real property on behalf of an owner to maximize return

Answer

The act of purchasing investment real estate

Answer

The appraisal of real property value

Answer

The financing of real estate acquisitions