Real Estate Agents

QUESTION 1

 Breakpoints are a feature of:

a.percentage leases

b.industrial leases

c.high-rise buildings

d.annual operating budgets

QUESTION 2

Buying real estate as an investment has some disadvantages compared to various other types of investments. One disadvantage is that:

a.no tax deductions apply to real estate owned as an investment (as opposed to personal use property)

b.a real estate purchase generally requires a larger cash outlay than other investments

c.real estate can’t be expected to depreciate as quickly as other investments

d.real estate provides a return to the investor only when the asset is sold

QUESTION 3

Byron keeps trust funds for all of his property management clients in a single pooled account. It’s an interest-bearing account, specifically designated as a trust account, in a financial institution whose accounts are insured by the Federal Deposit Insurance Corporation (FDIC). The pooled account’s balance is $380,000, and the FDIC’s coverage limit is currently $250,000. Which of the following is correct?

a.Because the pooled account’s balance exceeds the coverage limit, none of the client funds in the account are insured

b.Because the pooled account’s balance exceeds the coverage limit, the excess funds are uninsured

c.The FDIC’s coverage limit is applied to each client separately, even when their funds are pooled together in a single trust account, so all of the funds may be insured

d.The FDIC will not insure a client’s funds in a pooled trust account if that client has any other money deposited at the same financial institution

QUESTION 4

Do Not Call laws:

a.do not apply to property managers who are licensed real estate agents

b.prohibit cold calls to people who have listed their phone numbers in the FTC’s Do Not Call Registry

c.prohibit cold calling altogether

d.prohibit cold calling, and also prohibit returning calls from people who don’t already have an established relationship (as client or tenant) with the manage