National Portion Key Predicted Exam Questions and CORRECT Answers

Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA? Without consulting her mother, Chelsea decides to completely refurbish one of the properties. - An agent holding a POA can only make decisions that reflect the principal's preferences and can't exceed the authority granted by the POA. Refurbishing a property doesn't fall within the scope of managing the property is her mother's absence. A 20-unit apartment building sells for $5 million. The property can bring in $400,000 in annual gross income. What is the gross income multiplier (GIM)? 12.5 - Calculate GIM by dividing the $5 million sales price by the $400,000 gross annual income: $5 million ÷ $400,000 = 12.5.