Prepare for the Property Management certification exam with this study guide and practice questions. This covers leasing, maintenance, tenant relations, and property operations.
Q: Associated Licensee
Answer: licensee who is affiliated with a broker in charge or a property manager in charge
Q: branch office
Answer: A sub office of a company in which full-service real estate activities are conducted and at which a broker-in-charge or property manager-in-charge is licensed to conduct real estate transactions.
Q: Broker
Answer: a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation
Q: broker-in-charge (BIC)
Answer: Broker who is designed as having responsibility over all associated licensees and also has the responsibility and control over and liability for any trust accounts
Q: client
Answer: A person with who a licensee has established an agency relationship
Q: Real Estate Commission
Answer: A state board that advises and sets policies regarding real estate licensees and transaction procedures
Q: customer
Answer: Person with who a licensee has NOT established a agency relationship with
Q: Department of LLR
Answer: Department of labor licensing and regulations
Q: Licensee
Answer: Individual currently under this chapter
Q: office
Answer: The principal office location where a BIC or PMIC is licensed to conduct real estate business
Q: Property Manager
Answer: A person or company hired to maintain and manage property on behalf of the property owner
Q: Property manager in charge
Answer: Responsibility over associated Property Managers and Real Estate Trust Accounts
Q: Trust Account
Answer: escrow account maintained by a real estate broker for the deposit of other peoples money
Q: How many members of the real estate commission and who elects them?
Answer: 6 who actively practice real estate from congressional districts2 appointed by the governor-non real estate1 elected by the other 8- real estate member
Q: What are the powers and duties of the real estate commission?
Answer: 1. Determine standards for licensure2. Enforce standards for licensure with disciplinary hearings and etc.3. Establishing fee schedule
Q: What do you have to do to qualify for a license
Answer: A. Attained the age of 21 for PMICB. Age of 18 for PMC. Pass credit reportD. Graduated from high school or GEDE. Submit proof of education requirementsF. Pass the applicable exam
Q: Is there an educational requirement for the property manager license
Answer: No
Q: What is required to be a PMIC
Answer: Has an owner interest in the applicants company or actively engaged in the operation or management of the company
Q: How soon must the department be notified if a PM becomes disassociated with the PMIC?
Answer: The PMIC must notify the department immediately by letter and furnish a forwarding address
Q: How long do you have to wait and what do you have to do if your license gets revoked and you want it back?
Answer: A year1. Submit proof you are trustworthy and honest2. Submit proof of educational requirements if file is more than 5 years old3. Meet any other qualifications and conditions which apply to someone who has never been licensed
Q: How can you put your license on inactive status and for how long ?
Answer: Notify the department in writing and pay your renewal fees each year. Can be inactive indefinitely
Q: If your license has lapsed his king do you have to pay your renewal dues before you have to reapply and test again ?
Answer: 6-months plus all penalties and fees
Q: How often do you have to renew?
Answer: Bi- annually on June 30th
Q: What are the duties of a PMIC?
Answer: 1. Adequately supervise employees or sssociated licensees to ensure compliance2. Review and approve all forms of rental agreements3. Maintain regular contact with licensees4. Instruct in the handling of the trust account5. Be available to the public during normal business hours to discuss complaints and disputes6. Ensure accurate and complete records7. Ensure backup copies are maintained for trust account8. Establish and maintain a written office policy
Q: How long do you have to deposit monies into the trust or escrow account l?
Answer: Within 48 hours or receipt excluding Saturday sundays and bank holidays
Q: What monies remain in the trust account?
Answer: All monies that do not belong to the company owener profits, resident security deposits, advance rents, etc.
Q: How many escrow accounts are required ?
Answer: Companies with multiple offices may utilize one central trust account
Q: What type of complaint does the REC not handle ?
Answer: Commission payout disputes
Q: When do the monies in the escrow/ trust account get disbursed?
Answer: Upon consummation or termination of the contract at which time money is disbursed and full accounting made to principle
Q: How can a dispute over an earnest money deposit be settled?
Answer: If parties can not agree, an Interpol easer activity n in court
Q: Commingling
Answer: Illegally mixing deposits or monies, collected from a client, with one’s personal or business account. Taking money out too soon or putting it into escrow too late (10 banking days).
Q: Can the owner of the account collect intrest?
Answer: Yes but only if the clients rights are waived in writing using conspicuous language
Q: How long must financial documents and records be maintained?
Answer: Five years
Q: When can a licensee conduct business for an owner?
Answer: When a written contract is signed
Q: In the event of a personal transaction is the licensee required to disclose their licensee status
Answer: Yes in all personal transactions
Q: What are the inky duties an unlicensed employee of an owner multi-unit property are allowed to do?
Answer: A. MaintanceB. Clerical or admin supportC. Collection of rents which are made payable to owner or companyD. Showing of rental units to perspective tenatesE. Furnishing published informationF. Providing applications and lease formsG. Receiving applications and leases for submission to the owner or licensee for approval
Q: What must be in the management contract between the licensee and client
Answer: Names and signatures of both partiesProperty identificationTerms including expiration dates
Q: What can a unlicensed employee of a multi unit real estate owner not do?
Answer: a. discuss or negotiate contractsb. vary or deviate from the rental pricec. indicate to the public that the unlicensed individual is in a position of authority over the propertyd. conduct or host an open house or manage an onsite sales officee. show real propertyf. answer questions regarding anything other than public infog. discuss negotiate or explain a contracth. be paid soley on the basis of real estate activity
Q: What does a licensee not have to disclose to a potential renter?
Answer: 1. sickness that is not likely to be transferred2. death or manner of death3. location of registered sex offenders4. offsite condition or hazard that does not directly impact property5. any psychological impact like ghosts6. UNLESS ASKED DIRECTLY
Q: Acting like a PM without a licensee is a ____________ and can get you a $______ fine or inprisoned not more than ______ months or both.
Answer: Misdemeanor$5006 months
Q: Those not required to have a license to conduct real estate transactions:
Answer: a. owner of the propertyb. attorney at law acting within dutiesc. state and federal agenciesd. court appointed receivers and trustees
Q: The Civil rights act of ______ states that all persons born in the US have the right to own property and who upholds this act?
Answer: 1866Department of Justice
Q: What Supreme Court Decision upheld the civil rights act of 1866?
Answer: Jones vs. Mayerbc of this discrimination still illegal today
Q: The fair housing act protects what seven classes?
Answer: Race, Color, Religion, National Origin, Sex, Familial Status, and Handicap
Q: Blockbusting
Answer: frightening people into renting or selling their property by manipulating their prejudices
Q: Steering
Answer: Licensee shows white clients homes in white areas and minority clients minority areas- everyone has the right to live anywhere they can afford
Q: Redlining
Answer: Being denied or subjected to stricter conditions on a loan or insurance due to a property being in a certain area
Q: race
Answer: Identity with a group of people descended from a common ancestor.
Q: Creed/Religion
Answer: formal statement of religious belief
Q: Familial Status
Answer: One of the protected classes under Fair Housing referring to families with children under 18.
Q: What are the exemptions to Fair Housing?
Answer: Religious organizations that own propertyprivate club that owns propertyhousing for older personsSale by owner if they have less than 3 single family houses
Q: What is required for a property to be considered housing for older persons?
Answer: 80% of units must be occupied by someone age 55 or older
Q: Who enforces Federal Fair housing laws?
Answer: HUD
Q: Who enforces state Fair Housing Laws?
Answer: SC Human Affairs Commission
Q: What is the time limit on federal fair housing complaints?
Answer: must be FILED within 1 year of the event and 2 years to file action in court
Q: What is the time limit for State fair housing complaints?
Answer: Must be filed within 6 months and court action filed within 1 year
Q: SC Landlord-Tenant Act
Answer: The act applies only to rights, obligations, and remedies under a rental agreement or a dwelling unit located with South Carolina
Q: True or False: an agent must be a resident in S.C. to be authorized to do business in SC
Answer: True
Q: action
Answer: Is a court proceeding in which rights are determined including an action of possession
Q: Building & house codes
Answer: Includes any law, ordinance, or government regulations concerning fitness or habitation, or the construction, Maintance, operation, occupancy, use, or appearance of any premises or dwelling unit
Q: Dwelling Unit
Answer: A structure that is used as a residence or sleeping place by someone who maintains a household.
Q: Fair Market Value
Answer: the actual value of an asset, or the price for which it can reasonably be expected to sell in the open market
Q: good faith
Answer: honesty in fact and the observance of reasonable commercial standards of fair dealing
Q: landlord
Answer: the person who owns the property that you rent
Q: organization
Answer: A group of people who work together to achieve some specific purpose
Q: owner
Answer: Means one or more persons jointly or singly who have the legal title to the property
Q: Persons
Answer: Individuals, including families, caregivers, teachers, employees, relevant others
Q: premises
Answer: house or building and its surrounding property
Q: rent
Answer: payment to resource owners for the use of their natural resources
Q: rental agreement
Answer: A contract specifying the tenant’s and landlord’s legal responsibilities
Q: roomer
Answer: A person living in a unit that doesn’t have a toilet or bathtub or shower, sink, all provided by the landlord
Q: Single family residence
Answer: A housing structure maintained and used as a single dwelling unit. A single family residence may share walls with another dwelling unit, provided it has direct access to a street and does not share an essential facility or service with any other dwelling unit.
Q: tenant
Answer: A person who pays for the right to live in a residence owned by someone else
Q: wilful
Answer: habitually disposed to disobedience and opposition
Q: essential services
Answer: water, sewer, elec, gas, hot water and heat
Q: Comingling
Answer: The mixing of a clients’ funds with business operating funds. This is an illegal practice in Massachusetts that can result in revocation of an agent’s license.
Q: How long should you keep records?
Answer: 5 years
Q: What’s the main objective of PMIC ?
Answer: To suprivise all employees or associated licensees and Maintain trust accounts
Q: Unconscionability
Answer: Acts are considered unscrupulous excessive, unreasonable, and not guided by conscience. (Excessive fees)
Q: When should you renew your license and what happens if you don’t
Answer: A licensee who fails to renew and continues to engage in real estate is guilty of a misdemeanor and must be fined no more than 5 hundred dollars or imprisoned no more than 6 months or both
Q: Abandonment
Answer: Utilities off, 15-days after, you are able to take possession of the apartment
Q: When do you send over the SC disclosure of real estate brokerage relations paper?
Answer: Right after the first serious inquiry
Q: How many elected members are in the DC REAL ESTATE COMMISIONS ?
Answer: 10 members:7- are professionally engaged and active in the practice of real estate2- represents the public who are not engaged in real edge and each are appointment by the governor with the advice and consent of the senate
Q: What is a unlicensed employee of a multi-family unit rental property able to perform?
Answer: •Maintance•clerical or admin support•collection of rent•showing rental units•furnishing published info• receive applications and leases•provide applications and lease forms
Q: Agent duties to clients
Answer: C- confidentially (care)O-obedienceA-accountingL-loyaltyD-disclosure
Q: What’s the three basic goals of a property manager
Answer: 1. Achieve the objective of the properties owener2. Generate income for owners3. Preserve and/or increase the value of the investment property
Q: Real Property
Answer: land and anything attached to it
Q: residential
Answer: single-family housing and apartment buildings
Q: BOMA
Answer: Building Owners and Managers Association- oldest organization