Real Estate Property Management

Question 1

A property manager's primary fiduciary duty is to the:

Accepted Answer

Property owner (principal)

Answer

A property manager acts as an agent for the property owner and owes fiduciary duties of loyalty, care, and obedience to the owner as their principal.

Question 2

In a gross lease, the tenant pays:

Accepted Answer

Base rent only, with the landlord covering most operating expenses

Answer

In a gross (full-service) lease, the landlord pays most or all operating expenses from the rent received, simplifying costs for the tenant.

Question 3

In a net lease, operating expenses are paid by the:

Accepted Answer

Tenant in addition to base rent

Answer

In a net lease, the tenant pays base rent plus some or all of the property's operating costs such as taxes, insurance, and maintenance.

Question 4

Security deposits are typically held in:

Accepted Answer

A separate trust or escrow account per state law

Answer

Most states require security deposits to be held in a separate trust account, protecting tenants from commingling and requiring itemized accounting at move-out.

Question 5

The Fair Housing Act of 1968 (and amendments) prohibits discrimination based on:

Accepted Answer

Race, color, national origin, religion, sex, familial status, and disability

Answer

The Fair Housing Act protects seven federally recognized classes from discrimination in the sale, rental, and financing of housing.

Real Estate Practice Test

Real Estate Practice Test

Real Estate Property Management