Practice State Exam - Day 4.pdf

Practice State Exam This is a 70-questions practice test. It is an example of the State Exam. Feel free to take your time and take this as practice before the State Exam 1. A tenant has a pet in violation of a lease agreement....

Practice State Exam This is a 70-questions practice test. It is an example of the State Exam. Feel free to take your time and take this as practice before the State Exam 1. A tenant has a pet in violation of a lease agreement. The property manager provides a written notice, and the tenant gets rid of the pet in accordance with said notice. 8 months later the tenant gets another pet. The property manager should then: A. Provide a 3 day notice to vacate B. Provide a 3 day notice to correct or vacate C. Provide a 5 day notice to vacate D. Provide a 7 day notice to vacate 2. If a unit is not available for the tenant to move into on the agreed upon date, the tenant may give a _______ notice to terminate. A. 48 hours B. 3 day C. 5 day D. 7 day 3. What is the annual license renewal date for real estate licensees? A. January 1st B. 365 days after license issuance C. The last day of the month, 1 year after license issuance D. October 31st 4. Which of the following scenarios would NOT be exempt from the federal Fair Housing Act A. Housing at a synagogue wanting to only rent to Jewish tenants B. Renting out private units at Harvard club to only club members C. A 20 unit apartment complex renting their apartments solely to women D. An owner renting out the other portion of their home to a family with small children 5. Select which is not a protected class for housing explicitly specified in the Montana statutes: A. Age B. Smoking Preference C. Marital status D. Religion 6. If no length is specified, the default lease length for commercial properties is: A. 30 days B. 90 days C. 1 year D. 3 years 7. What is the definition of cash flow: A. Net operating income (NOI) + utility payments B. Net operating income (NOI) - debt service C. Gross Potential Income - Operating Expenses D. Effective gross income - vacancy loss 8. What is the annual net operating income (to the nearest dollar)? 321 Main St. ○ Monthly Figures ○ 19 units @ $525/ per month ○ 5% vacancy ○ $1500 Maintenance ○ $400 utilities ○ 5% management fee ○ $300 month insurance ○ $250 month property taxes ○ $3000 / month debt service A. 3,552.00 B. 6,552.44 C. 42,629.00 D. 78,629.00 9. In lieu of a $200 security deposit, a Landlord agrees to allow a Tenant to clean their dirty unit on arrival. Upon move-out the Tenant leaves the unit clean with no damage or monies owed. The Landlord: A. Must refund the tenant a $200 security deposit for value given for the cleaning at the start of the lease. B. Should provide a closing statement, however he need not return a security deposit because none was paid. C. Is not obligated to do anything. D. Must refund ½ the security deposit 10. How much is the monthly rent for office space that measures 30 ft x 45 ft, with a yearly rent price of $7.50/sq. ft.? A. 843.75 B. 912.50 C. 1,012.50 D. 10,125.00 11. In a commercial building where the tenant pays in addition to rent, certain costs (maintenance, insurance, etc.) there is typically which type of lease: A. Land Lease B. Gross Lease C. Commission Lease D. Net Lease 12. What parties are the sole players in a fiduciary relationship? A. Owners and Tenants B. Agents and Tenants C. Principals and Agents D. Principals and Owners 13. A tenant that continues to occupy a rental premise after the expiration of their lease is referred to as a: A. Holdover tenant B. Sublessee C. Lessor D. Tenant with joint severability 14. How many continuing education hours must be completed yearly, prior to renewal: A. 12 hours B. 8 hours C. 16 hours D. 4 hours 15. An unconscionable provision in a rental agreement may: A. Render the entire rental agreement unenforceable B. Give additional protections to the landlord C. Create a binding effect on the tenant D. Supersede any other provision of a rental agreement 16. When may a Landlord adopt new rules for a building: A. When 14 days notice is given for month-to-month tenants B. When it applies to all occupants of the building in a fair manner C. As soon as written notice is given to the tenants D. When a majority of tenants consent to the rule 17. ____________ is an important factor in establishing an owner-manager relationship. A. Friendship B. Communication C. Creditworthiness D. Ethnic background 18. You suspect that a tenant is operating a prostitution business at a property you are managing. You should: A. Report them to the Department of Labor & Industry B. Contact law enforcement C. Evict them immediately with a 3 day notice D. Reason with them and verbally ask them to stop 19. Which of the following are mandatory in the new property manager required hours: A. 4 hours trust accounts B. 4 hours fair housing C. 4 hours leasing principles D. 4 hours state law update 20. Which of the following need NOT be kept in a trust account: A. Earned interest B. Security deposits C. Owner reserves D. Rents received 21. The term for when a tenant continues to live in a rental property after their lease has expired, is: A. Squatter B. Demand for action C. Joint and several liability D. Tenancy at sufferance 22. Which of the following is true regarding security deposits: A. There is a limit to their amount B. If used, a condition report must be provided to tenant C. Any interest earned must go to the tenants D. You cannot require one greater than 1 ½ the monthly rent 23. Which of the following is true regarding the adoption of rules for a residential property: A. If a rule stands to create a substantial modification of the tenant's bargain, then it shall not be effective until 7 days in the case of week-to-week tenants. B. A rule could provide that a tenant performs the landlord's obligations, like installing a smoke detector. C. A rule could be unrelated to the purpose for which it is adopted. D. All rules must be provided in writing, with at least 30 days notice, to renters. 24. Which of the following need not be kept in a trust account: A. Security deposits B. Manager Commissions C. Owner reserves D. Rents receive 25. What is the monthly rent paid on a unit with a rental agreement that calls for 4% of gross sales or $500 per month whichever is greater? The annual gross income on the unit is $160,000 A. 500.00 B. 533.33 C. 6,000.00 D. 6,400.00 26. The purpose of the Department of Labor & Industry is to: A. Take action against unlicensed individuals B. Protect the public C. Provide legal assistance to consumers D. Act as a resource or aid licensees in resolving legal issues. 27. A property manager fails to renew their license by the annual renewal date. 30 days after failing to renew their license, the following applies to the licensee: A. May only utilize their license after a late fee is paid B. Must forward their license to the Department of Labor & Industry C. May not use their license D. May utilize their license in lapsed status 28. Which of the following is true regarding a tenant moving out: A. They must be given 24 hours to make any necessary repairs B. You may be required to return their security deposit within 10 days C. If they do not give you their new address you can keep their deposit D. They must leave the rental up to the Property Manager’s standards 29. A(n) ___________________ is an agreement in which a tenant purchases the right to occupy real property of a landlord for a given period of time. A. acceleration clause B. lease C. attachment D. application 30. Which of the following is true as it relates to a guide dog in a “no pets” apartment building: A. They are allowed to visit, but cannot live there B. They are a pet and should be treated the same as any other pet to avoid discrimination C. They may be considered a reasonable accommodation and would thereby be exempt D. If they do damage the Landlord must pay for the damage incurred 31. A landlord, in January, is notified by the tenant that their heating system is not working, the landlord has how many working days to fix it? A. 3 B. 5 C. 7 D. 14 32. What is the minimum notice requirement a landlord must provide if the tenant is not properly cleaning their premises? A. 7 day notice to vacate B. 7 day notice to correct or vacate C. 14 day notice to vacate D. 14 day notice to correct or vacate 33. What is the maximum number of days for a landlord to correct an emergency maintenance issue? A. Within 3 days B. Within 3 working days C. Within 14 days D. Within 30 days 34. How many days, following a tenant’s answer, in an action for possession does the court have to schedule a hearing? A. 7 days B. 10 days C. 14 days D. 25 days 35. On a lease agreement the tenant is: A. The lessor B. The lessee C. The mortgagor D. The mortgagee 36. A tenant has a minor maintenance issue and calls the landlord. After 7 days the landlord has still not addressed the issue. A. The tenant may now terminate the rental agreement with 7 day notice B. The tenant can repair the issue and deduct the cost of the repair from rent. C. The tenant should specify the issue in writing to the landlord. D. The tenant may seek alternate housing and withhold rent until such time as the repair is made. 37. If a property management agreement is terminated by the owner of the property. The property manager is still responsible to the tenant to perform management functions, until: A. The end of their current lease term B. They notify the tenant in writing of the change of management C. They provide the tenant with 30 days advance notice D. They provide the tenant with 7 days advance notice 38. An 8-plex rents for $575/month per unit, however 3 units are vacant. What is the annual Gross Potential Income of the building? A. 2,875.00 B. 4,600.00 C. 34,500.00 D. 55,200.00 39. What is the monthly cash flow? 321 Main St. 19 units avg. of $525/ per leased unit 5% vacancy factor $1500 / month Maintenance $400 / month utilities 5% gross rents management fee $300 / month insurance $250 / month property taxes $3000 / month debt service. A. 3,552.44 B. 4,087.19 C. 4,337.19 D. 6,552.44 40. What does ADA stand for? A. Apartment and Dwelling Association B. Americans with Disabilities Act C. All Disabled Americans D. Association of Disabled Americans 41. Fair Housing laws would require a landlord to make all of the following reasonable accommodations / modifications, except: A. Installing a 1 step ramp to a laundry room B. Adding grab bars in a bathroom C. Installing an elevator to access a 2nd floor apartment D. Accommodating a live-in caretaker 3 nights a week, even if the visitor rules only allow visitors 2 nights a week. 42. If a landlord fails to provide the tenant with a 24 hour notice of required cleaning then they: A. may not deduct anything from a security deposit B. must hire a professional cleaning company to perform cleaning C. are still allowed to deduct lost rent from a deposit D. must refund the deposit within 7 days 43. A tenant staying beyond the end of a 1 year lease end date without permission would be referred to as: A. Evicted B. Holdover C. Tenancy at will D. Lease for years 44. A tenant, upon written request, must be provided what information: A. The property owner’s name and address B. The security deposit disposition for the prior tenant C. The names of nearby sexual or violent offenders D. The highest and lowest rent in the building 45. A leasehold which the landlord or tenant may terminate at any time, with reasonable notice, is: A. Gross lease B. Lease for years C. Term lease D. Tenancy at will 46. A property manager has a legitimate concern about drug activity going on at one of their properties with a month-to-month lease. One option they have is to: A. Provide tenant with a 24 hour notice to vacate B. Provide tenant with a 48 hour notice to vacate C. Provide tenant with a 30 day notice to vacate D. Take no action 47. How many years must all trust account documents be kept for? A. 3 B. 5 C. 7 D. 8 48. A rule adopted by a landlord concerning tenant’s use and occupancy must be: A. Effective only when 14 days notice is given for month-to-month tenants B. Given to each new tenant upon arrival C. Given both verbally and in writing D. Agreed upon by a majority of the tenants at the property 49. You are managing a 30-unit apartment complex and your cost of doing business to manage these units is $8,000. What would your markup have to be per unit to maintain a 12% profit? A. 32 B. 36.36 C. 960 D. 1090.9 50. What is the number of days a landlord has to return a security deposit if there are withholdings from the deposit? A. Within 45 days B. Within 10 days C. Within 14 days D. Within 30 days 51. When a property manager shows a family with a small child only the properties that are available with playgrounds he is conducting an illegal practice called: A. Steering B. Redlining C. Familial discrimination D. Age discrimination 52. Lead-based paint disclosures are required for buildings built in or before: A. 1976 B. 1977 C. 1978 D. 1988 53. Which is not a protected class for housing explicitly specified in the Montana statutes: A. Familial Status B. Income C. Sex D. Color 54. What is the maximum number of days for a landlord to correct a non-emergency maintenance issue? A. Within 3 days B. Within 3 working days C. Within 14 days D. Within 30 days 55. A tenant is caught doing damage to the common area laundry area. The fastest way to legally get rid of them would be to: A. Provide them with a 3 day notice to quit B. Immediately escort them off the property with law enforcement C. Provide them with a 30 day notice D. End their lease at the end of the current term 56. What information must be included on a deposit slip? A. Date, Amount, Source of Money, Where Deposited B. Number of days since payments were received, Date, Amount, Where deposited C. Source of Money, Tenants Address, Principal, Amount 57. In which housing situation would you be legally allowed to deny children: A. If the property does not have a playground onsite B. If the property has a strict “quiet hour” policy C. If there are already 20% children at the property D. If the property is at least 80% occupied by 1 person over 55 years old 58. A person rents a property on a 10 year lease, the next day the owner sells the property. What happens to the lease? A. The rights and obligations of the lease conveys to the purchaser. B. The lease becomes month-to-month and can be canceled by the purchaser by providing 30 days notice. C. The landlord and tenant must negotiate a new lease agreement. D. The lease terminates upon consummation of a sale. 59. When, after receipt, must you deposit rents into your trust account? A. By the 3rd of the month B. Within 3 business days C. Within 3 calendar days D. Within 10 business days 60. A rental agreement may: A. Agree to waive the rights or remedies of the parties B. Authorize a person to confess judgment on a claim arising from the agreement C. Indemnify the other party of the liability or costs of attorney fees D. Provide provisions governing the rights and obligations of the parties 61. Which is not a protected class for housing explicitly specified in the Montana statutes: A. Familial Status B. Credit Worthiness C. Religion D. Creed 62. Two parties, agreeing to the written terms and conditions of a rental agreement, would create a: A. Quit-Claim Deed B. Meeting of the Minds C. Verbal contract D. Property management agreement 63. What is the prorated rent on an apartment if the rent is $870 per month and the tenant moves in on the 11th? (Assume a 30 day proration.) A. 551 B. 580 C. 505.16 D. 592 64. If a property manager’s license lapses, the licensee must: A. Assign their contractual obligations to another licensee B. Retake the state exam C. Pay a fee to have it reinstated to Active status D. Not use their license 65. A property manager who manages multiple properties in a supervisory position is called a(n): A. Asset Manager B. Comptroller C. Capital Supervisor D. Fiduciary Manager 66. If a tenant who requires special accommodations requests to have a pet in a 'no pet' community or apartment building, the property manager must tell him _____. A. He can’t have a pet and tell him it is a no pet community B. He Is permitted to have a pet if he wants one C. Only service animals who are trained to perform specific tasks for disabled persons are permitted D. He can have a dog that meets weight requirements 67. The _____ is typically responsible for the cost of making reasonable modifications such as adding an accessible parking spot near an apartment where a tenant requiring accommodation resides. A. Local police B. Tenant C. Landlord/ Property manager D. Management company 68. What are the three additional documents required with property management contracts in Montana? A. All of these B. Lead based paint disclosure C. Move-in checklist D. Mold disclosure 69. Which of the following is NOT a requirement to becoming a property manager in the state of Montana? A. Must pass the state exam B. Must have real estate license C. Must be 18 or older D. Must take 30 hours of pre-licensing course 70. In Montana, property managers are required to make all deposits related to property management in _____. A. Real estate office B. No requirements for rental deposit C. Personal accounts D. Trust accounts BONUS QUESTION: 71. What does a property management contract consist of in Montana? A. Rules for becoming a licensed property manager B. Guideline, agreement and expectations between the landlord and tenant C. Only consists of guidelines for the landlord D. Requirements for becoming a tenant