Real Estate Exam

Question 1

The primary objectives of a property manager are:

Accepted Answer

A & C

Answer

The primary objectives of a property manager are to generate the highest possible net income over the economic life of the property and to preserve or increase the property's value. Option A correctly states generating the highest possible net income. Option C is identical to option A, making D (A & C) the correct choice, indicating both are objectives.

Question 2

The type of manager most likely to be licensed as a real estate broker is the:

Accepted Answer

Property manager

Answer

A property manager typically handles the overall operation, maintenance, and leasing of an income-producing property for an owner. These responsibilities often include negotiating leases, collecting rent, and handling finances, which generally require a real estate broker's license in many jurisdictions. Building managers or resident managers usually have more limited, on-site roles.

Question 3

In a landlord/tenant relationship, the landlord is said to hold a:

Accepted Answer

Reversion

Answer

In a landlord/tenant relationship, the landlord holds a reversionary interest. This means that at the end of the lease term, the right to possession of the property 'reverts' back to the landlord. The landlord retains ownership throughout the lease, granting only the right of possession to the tenant.

Question 4

The type of tenancy that has a beginning and ending date is the:

Accepted Answer

Estate for years

Answer

An estate for years, also known as a tenancy for years, is a leasehold estate that has a definite beginning and a definite ending date. It can be for any fixed period, whether it's a week, a month, or several years, and it terminates automatically without notice on the specified end date.

Question 5

If the tenant were to die during the lease period, which type of leasehold would pass to the tenant’s estate?

Accepted Answer

A & B

Answer

An Estate for Years and a Tenancy from Year to Year (periodic tenancy) are both types of leaseholds that can pass to a tenant's estate upon their death. An Estate for Years has a definite term, and the estate would inherit the remaining term. A Tenancy from Year to Year, while having a renewable period, also has a defined term that would pass to the estate until proper notice of termination is given.

Real Estate License Practice Test

Real Estate License Practice Test

Real Estate Exam