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Oregon Property Management Final Exam
Terms in this set (99)
Oregon's statutes on property management with respect to licensure and property management activity are extensive. These laws serve which of the following purposes:
a. To specify requirements for the management of rental real estate
b. To protect owners and tenants of rental real estate
c. To encourage real estate property managers to comply with the applicable statutes and rules through education
What is an identifying code?
a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement
A property manager must not engage in the management of rental real estate without a ___________________________________ between the owner and the property manager.
written, unexpired property management agreement
Placement of trust funds received by a property manager must be placed in a _________________________________ trust account.
federally insured interest-bearing
Any amendment or addendum to the property management agreement must be in writing and include:
a. identifying code
b. the date of the amendment
c. the signature of the property manager and the signatures of all owners who signed the initial property management agreement.
A property manager must disburse earned management fees from the client's trust account ______________________________ unless a different schedule of disbursement is specified in the property management agreement, and may only disburse such fees if sufficient funds are available.
at least once each month
Upon completion of a compliance review, if the Agency has reasonable grounds to believe that the funds of an owner or tenant may be missing, funds may have been misappropriated, or the property manager's records are in such a condition that the property manager is placing owners' and/or tenants' money at risk the Agency may immediately initiate an investigation without _______________________.
providing a property manager with an opportunity to cure noncompliance
A licensed property manager is only authorized to engage in the management of rental real estate and is not authorized to engage in other professional real estate activity such as ________________________________________.
a. the purchase of real estate
b. the sale of real estate
c. exchanges of real estate
Can a nonlicensed individual who performs certain property management functions be exempt from being licensed?
Yes, is they fall into the exempt category by Oregon statute
The following individuals may engage in the management of rental real estate, unless they are exempt:
a. A licensed real estate broker, under the supervision of a licensed principal real estate broker
b. A licensed principal real estate broker
c. A licensed property manager
The Agency will provide a property manager with written notice of a mail-in audit at least
__________________________ before required information and documentation must be provided to the Agency.
If a property management agreement is terminated, the property manager must suspend management activity pursuant to the terms of the management agreement. What is the longest period of time the property manager has to return all monies to the parties?
_____________________ means an Agency audit of a clients' trust account based on information and documents prepared by a property manager and mailed to the Agency.
The Agency will provide a property manager with written notice at least ___________ business days before conducting a compliance review.
A property manager may not deposit any funds received on behalf of an owner in ________________________________________________, or commingle any such funds received with personal funds of the property manager.
the property manager's personal account
A Landlord Tenant Act can be:
a. A federal law
b. A state law
Which of the following would be an exclusion to the Oregon Residential Landlord and Tenant Act?
c. living in some institutions
Included in the Oregon Residential Landlord and Tenant Act are mobile homes, houseboats and other structures used as a _________________________.
The landlord is required to provide trash cans and arrange for removal, ____________________________.
but the tenant may be asked to pay for the service
The landlord has ______________ after termination of the rental agreement to refund all deposits due.
Deposit money may not be claimed by the landlord to cover ______________________.
ordinary wear and tear by the tenant
In a month-to-month lease, the landlord can raise the rent after providing __________________ notice.
For a mobile home space or floating home the landlord must give each tenant a minimum of ________ written notice to increase the rent.
A landlord can give a tenant a __________ notice to vacate and not state a reason why.
If a tenant is ____________ late in paying rent, the landlord is allowed to issue a 144-hour notice to pay or vacate.
A landlord has the right to inspect the property. At least __________________ notice must be given before entering the property, except in case of emergency, agreement to the contrary or unless it is impracticable to do so.
When the landlord tells the tenant they have the right under a rental agreement to occupy the dwelling unit to the exclusion of others, and gives them the keys, this is known as delivery of possession ___________________________.
Delivery of possession
Which of the following is an allowable fee that a landlord can charge a tenant?
a. violation of a pet agreement
b. non-sufficient funds check
c. non-compliance of written rules of policies
When the landlord tells the tenant they have the right under a rental agreement to occupy the dwelling unit to the exclusion of others, and gives them the keys, this is known as:
Delivery of possession
Which of the following is NOT an allowable fee that a landlord can charge a tenant?
Normal wear and tear
A property manager should manage each property with the ______________ objectives in mind.
______________________ the owner's profits should always be kept in mind.
Bill wanted to buy a building that he could lease out to tenants. His concerns were building features (ceiling heights and floor load capacity), access to transportation and environmental concerns. What type of building might he be considering buying?
Which of the following would be a concern for an owner who is leasing retail property?
a. tenant mix
A study of the viability of a business venture is called a ________________ study.
A feasibility study should be performed by a qualified individual who has ___________.
expertise in the industry
The main objective of a feasibility study is to determine whether a certain plan is:
c. Worth pursuing
It is important to understand your clients to determine:
a. If you are meeting their needs
b. Their objectives
c. Understand demand
These leases are sometimes straight, flat or fixed leases. They are called a __________________.
Step leases are also known as:
With this lease the tenant pays a flat monthly amount and the landlord pays for all of the operating costs. What type of lease is this?
Which of the following might be a reason for a landlord to have a graduated lease?
Covers the expected increases for expenses of the landlord
With a __________________ the tenant pays a base monthly rent plus some of the expenses.
With a cost-of-living lease:
a. The rent is tied to rises in the cost of living
b. The rent goes up with general inflation
The tenant leases the land and constructs a building on it. What type of lease is this?
The tenant pays a base amount and a percentage of gross income. What type of lease is this?
Which of the following would be a common provision in a lease?
a. Payment of rents
b. Use of the premises c. Maintenance
An estate for years is a lease for a_____________________________.
fixed period of time
Barbara has leased on a month to month basis with her landlord. At the end of each month the lease renews itself unless either party give proper notice to the other party to terminate the lease. What type of lease does Barbara have?
A periodic tenancy lease
Sam had a lease to occupy an apartment with a term from Feb. 1st through July. 1st. At the end of the term, his landlord gave him proper legal notice to vacate. Sam paid no attention to the notice, stopped paying rent of any kind and still occupies the property on Nov. 1st. This is an example of __________________.
an estate at sufferance lease
Sue has a lease for one year (an estate for years lease). The one year lease has expired and she is in the process of negotiating a new lease with the landlord. She continues to pay her rent according to the terms of the expired lease. This situation is now:
an estate at will
Leasehold estates are considered less than freehold estates. The person holding the leasehold is referred to as the ____________________________.
The property manager acts as a liaison between the tenant and the landlord. However, the property manager most likely has ___________________________________.
an agency relationship with just one of the parties
_________________________ is an agency where a property owner hires a broker to procure a tenant for their property:
The property manager has a duty to the landlord to maximize their profits, financial accounting of the operations and to ensure the operations are __________________________________.
a. within the constraints of the law
b. within the constraints of the lease agreement
Licensees who perform property management and are affiliated with brokerages that do not have trust accounts should ______________________________.
not perform property management
Because of the detailed nature of property management, ____________________ may not want to devote the time it takes to oversee and supervise affiliates who are performing property management activities.
a principal broker
With respect to the management of funds, property management, almost more than any other real estate activity, involves _____________________________________________.
a. management of numerous funds
b. disbursements and deposits of funds
c. detailed bookkeeping
As with any area of specialization in real estate, the managing of properties requires expertise. The principal broker or the licensee ______________________________.
should ensure that they have the expertise to perform property management activities
The property manager acts as a/an ____________ between the tenant and the landlord.
Which of the following is NEVER a duty of a property manager:
maintain records on tenant's religion preferences
Which of the following is a duty the property manager has to a landlord?
a. Maximize profits
b. Financial accounting
c. Ensure the operations are within the constraints of the law and the lease agreements.
The property manager also has a duty to the tenant to:
a. Ensure the tenant has a safe and habitable dwelling
b. Ensure the terms of the lease or rental agreement are carried out.
Which of the following is a way in which a lease can be terminated?
a. Destruction of the property
c. Illegal use of the property
When a tenant fails to pay the rent as per the rental agreement, the landlord is required by law to________________.
give notice to the tenant
_______________ occurs when the landlord removes the tenant from the property.
___________________ occurs when the landlord causes a major interference with the tenant's possession of the property. An example would be failure to fix a broken toilet and sink.
When making an offer to purchase a property, the buyer usually submits a good faith deposit called a/an _______________.
The practice of mixing trust account funds with that of the brokerage's regular checking account funds is called ____________.
Earnest money can be in the form of ____________.
c. a promissory note
The maker of a promissory note is the __________.
Most states have ________ laws on the procedures for handling trust accounts.
A promissory note must always specify the _________.
full legal description of the property
All monies held for others must be deposited into a:
Each brokerage will want to have a____________. This account handles the income and operating expenses that belong to the brokerage.
All monies deposited in the trust account cannot be mixed with any operational expenses for the brokerage. The practice is called ____________________ and is illegal.
When a brokerage opens a trust account, they must notify the financial institution, in writing, ______________________.
that the account is for the purpose of holding funds that belong to others
The brokerage must notify the Real Estate Agency of all trust accounts. This notification must be on a form approved by the____________________________.
Checks from the trust account must bear the words _____________________ and be pre-numbered.
client's trust account
Funds may not be transferred from an escrow trust account to a brokerage's trust account or vice versa without written permission ___________________________.
of the principals
An affiliated licensee must submit all trust funds to their principal broker within ____________ banking days of receipt, unless there are written instructions to the contrary.
The principal broker has _________ banking days from the time they receive funds to deposit them into the trust account.
A principal broker must maintain a ledger of all trust account activity for deposits and disbursements called a ____________________________.
receipt and disbursement journal
Principal broker, Joe, was holding earnest money for the Smith/Anderson transaction. The transaction was terminated and the parties could not come to agreement as to who owned the funds. Joe wanted to have the court decide the rightful owner of the funds. He filed a/an ___________________________________ with the court.
Sue, a principal broker for Tom, received an earnest money check from him on Saturday. There were no written instructions to hold the funds until mutual acceptance of the offer. What is the deadline for Sue to deposit funds in the trust account?
It is customary for the ________________________ to handle earnest money.
selling broker and their principal broker
Principal broker, Jane, used money from the brokerage trust account to pay for her administrative assistant. Jane would be guilty of ___________________________.
Usually, the instructions for the handling of earnest money are stated in the _____________________________.
purchase and sale agreement
Cash receipts from property management activity in Oregon must be in duplicate form and must be ___________________________.
Within _______________ of a property management agreement termination, the property manager must disburse all funds to the parties entitled to the funds.
All security deposits are required to be kept in a _____________________ by the landlord or an authorized representative of the landlord.
Conditions which might affect a local property management firm might be:
a. The cost of money (interest rates)
b. The number of licensees entering or exiting the business
c. Changes in demography
When economic conditions are very good, _____________ may be a positive managerial move.
Insurance companies determine the level or risk when issuing business insurance policies. This is referred to as:
______________________________ is intended to promote accuracy and guard the privacy of the information used in consumer reporting.
The Fair Credit Reporting Act (FCRA)
There are ________________ major national credit reporting agencies (CRAs)
The federal Civil Rights Act of 1866 prohibits all _________ discrimination in the sale or rental of property.
The Civil Rights Act of 1968 expands the definition of discrimination to include not only race, but also national origin, color, and ______.
__________________________________________ administers and enforces federal laws and establishes policies that ensure all citizens of the US have equal access to the housing of their choice.
The Office of Fair Housing and Equal Opportunity (FHEO)
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