Criminal Record

QUESTION 1

 As a general rule, employees who work under a property manager need to be bonded only if:

a.the property owner requests it

b.they handle money as part of their job

c.they have a criminal record

d.the property’s hazard insurance does not cover them

QUESTION 2

 At one of the properties Tyree manages, rent is due by the fifth of the month; if payment is received after 5:00 PM on the fifth, a flat $50 late fee is imposed. The biggest disadvantage of this policy is that:

a.most tenants will wait until the fifth to pay, instead of paying on the first of the month

b.once tenants have incurred the late fee in a given month, they have no incentive to get the rent paid sooner rather than later

c.imposing a late fee gives tenants the impression that late payment is acceptable

d.adding a late fee only makes it more difficult for delinquent tenants to pay the overdue rent

QUESTION 3

Ava and Benjamin are organizing an investment syndicate to purchase an income property. They’re planning to invite various business associates and acquaintances to participate. All of the following are true, except:

a.the syndicators may manage the property themselves or hire a professional property manager

b.federal and state securities laws may apply when the syndicators offer interests in the syndicate to others

c.the syndicators must have unlimited liability, although the other participants may have limited liability

d.collaborating with other investors will enable them to purchase a larger, more expensive property than they could on their own

QUESTION 4

Banks generally won’t finance development of a new shopping center:

a.unless there will be at least four anchor tenants

b.until the developer has signed lease agreement(s) with the anchor tenant(s)

c.until the land has been purchased and the site infrastructure prepared

d.if there is already another shopping center of similar size and character within a ten-mile radius