CRM Risk Management & Safety Practices 3

Question 1

A resident's guest is injured by a poorly maintained gate. Who is most likely liable for the injury?

Accepted Answer

The property owner and/or management company

Answer

Property owners and managers have a duty of care to maintain common areas in a safe condition for residents, guests, and invitees.

Question 2

Which of the following is a key element of a successful risk transfer strategy in residential property management?

Accepted Answer

Requiring contractors to carry adequate insurance and name the owner as an additional insured

Answer

Requiring certificates of insurance with additional insured status transfers the financial risk of contractor-caused losses to the contractor's insurer.

Question 3

Lead-based paint disclosure requirements under federal law apply to residential properties built before which year?

Accepted Answer

1978

Answer

Federal law (TSCA Title IV) requires disclosure of known lead-based paint hazards in housing built before 1978, when lead paint was banned for residential use.

Question 4

What does 'assumption of risk' mean in the context of residential property liability?

Accepted Answer

A resident knowingly accepts the inherent dangers of a voluntary activity

Answer

Assumption of risk is a legal defense where the plaintiff voluntarily engaged in an activity knowing its inherent dangers, which can reduce the defendant's liability.

Question 5

A fire suppression system inspection reveals several sprinkler heads need replacement. The property manager should:

Accepted Answer

Document the finding and schedule immediate repairs to maintain system integrity

Answer

Fire suppression system deficiencies must be corrected promptly because a compromised system endangers lives and may void insurance coverage.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Risk Management & Safety Practices 3