Champions TX Property Management
SAE
1. Lead-Based Paint Disclosure
Lead-based paint disclosure forms must be retained for:
● A) One year
● B) Two years
● C) Three years
● D) Five years
Answer: C) Three years
2. Prospect-Per-Ad Cost
A $250-per month apartment requires seven prospects before it is leased during
active market conditions. If a $30 classified ad must be run for two days to attract
this number of prospective tenants, the prospect-per-ad cost figure for the marketing
effort would be:
● A) $4.29
● B) $6.00
● C) $8.57
● D) $10.00
Answer: C) $8.57
3. Prestige Campaign Timing
A campaign to increase the prestige of a property logically should be undertaken:
● A) During a recession
● B) In a stable market
● C) During rapid expansion
● D) When vacancy rates are high
Answer: B) In a stable market
,4. Construction Contract Terms
A contract for construction work typically states that:
● A) Payment is made in full upfront
● B) A percentage of the fee will be held back until all work has been completed
● C) The contractor assumes all liability
● D) The owner provides all materials
Answer: B) A percentage of the fee will be held back until all work has been
completed
5. Flat Fee Arrangement
A flat fee arrangement would be MOST appropriate when managing a(n):
● A) Office building
● B) Shopping center
● C) Condominium community
● D) Industrial warehouse
Answer: C) Condominium community
6. Management Plan Basis
A good management plan is based on a(n):
● A) Five-year projection
● B) Operating budget for one year
● C) Historical performance data
● D) Market analysis report
Answer: B) Operating budget for one year
7. Monthly Earning Report
A monthly earning report submitted by the manager to the owner:
, ● A) Is only required quarterly
● B) Should always be accompanied by a personal note
● C) Must be audited by a CPA
● D) Is optional for small properties
Answer: B) Should always be accompanied by a personal note
8. Property Manager as Agent
A property manager acting as an agent:
● A) Has no fiduciary duties
● B) Owes the duties of care, loyalty, obedience, accounting, and disclosure to
the principal
● C) Works independently of the owner
● D) Is only responsible for maintenance
Answer: B) Owes the duties of care, loyalty, obedience, accounting, and
disclosure to the principal
9. Fair Housing Violation Example
A property manager had two vacancies. When a single parent and her child inquired
about an apartment, they were told that the building was 100% occupied. This is an
example of:
● A) Blockbusting
● B) Redlining
● C) Steering
● D) Proper management
Answer: C) Steering
10. Management Agreement Type
A property manager's agreement provides for a leasing fee plus $13,000 per year for
managerial services. What kind of agreement is this?
● A) Percentage lease
, ● B) Flat-fee arrangement
● C) Commission-based agreement
● D) Hybrid arrangement
Answer: B) Flat-fee arrangement
11. PUD Management Similarity
A PUD is similar in management to a(n):
● A) Apartment complex
● B) Office building
● C) Condominium
● D) Shopping center
Answer: C) Condominium
12. Percentage Lease Calculation
A retail establishment has a percentage lease at a rate of 2.5% of gross monthly
sales. First quarter sales were: January, $5,270; February, $4,500; March, $6,320.
What was the total rent for the first three months?
● A) $350.00
● B) $402.25
● C) $450.50
● D) $500.00
Answer: B) $402.25
13. Building Type Definition
A type of building that is made up of nonspecialized interior floor space is called a(n):
● A) Office building
● B) Warehouse
● C) Loft
● D) Retail space
SAE
1. Lead-Based Paint Disclosure
Lead-based paint disclosure forms must be retained for:
● A) One year
● B) Two years
● C) Three years
● D) Five years
Answer: C) Three years
2. Prospect-Per-Ad Cost
A $250-per month apartment requires seven prospects before it is leased during
active market conditions. If a $30 classified ad must be run for two days to attract
this number of prospective tenants, the prospect-per-ad cost figure for the marketing
effort would be:
● A) $4.29
● B) $6.00
● C) $8.57
● D) $10.00
Answer: C) $8.57
3. Prestige Campaign Timing
A campaign to increase the prestige of a property logically should be undertaken:
● A) During a recession
● B) In a stable market
● C) During rapid expansion
● D) When vacancy rates are high
Answer: B) In a stable market
,4. Construction Contract Terms
A contract for construction work typically states that:
● A) Payment is made in full upfront
● B) A percentage of the fee will be held back until all work has been completed
● C) The contractor assumes all liability
● D) The owner provides all materials
Answer: B) A percentage of the fee will be held back until all work has been
completed
5. Flat Fee Arrangement
A flat fee arrangement would be MOST appropriate when managing a(n):
● A) Office building
● B) Shopping center
● C) Condominium community
● D) Industrial warehouse
Answer: C) Condominium community
6. Management Plan Basis
A good management plan is based on a(n):
● A) Five-year projection
● B) Operating budget for one year
● C) Historical performance data
● D) Market analysis report
Answer: B) Operating budget for one year
7. Monthly Earning Report
A monthly earning report submitted by the manager to the owner:
, ● A) Is only required quarterly
● B) Should always be accompanied by a personal note
● C) Must be audited by a CPA
● D) Is optional for small properties
Answer: B) Should always be accompanied by a personal note
8. Property Manager as Agent
A property manager acting as an agent:
● A) Has no fiduciary duties
● B) Owes the duties of care, loyalty, obedience, accounting, and disclosure to
the principal
● C) Works independently of the owner
● D) Is only responsible for maintenance
Answer: B) Owes the duties of care, loyalty, obedience, accounting, and
disclosure to the principal
9. Fair Housing Violation Example
A property manager had two vacancies. When a single parent and her child inquired
about an apartment, they were told that the building was 100% occupied. This is an
example of:
● A) Blockbusting
● B) Redlining
● C) Steering
● D) Proper management
Answer: C) Steering
10. Management Agreement Type
A property manager's agreement provides for a leasing fee plus $13,000 per year for
managerial services. What kind of agreement is this?
● A) Percentage lease
, ● B) Flat-fee arrangement
● C) Commission-based agreement
● D) Hybrid arrangement
Answer: B) Flat-fee arrangement
11. PUD Management Similarity
A PUD is similar in management to a(n):
● A) Apartment complex
● B) Office building
● C) Condominium
● D) Shopping center
Answer: C) Condominium
12. Percentage Lease Calculation
A retail establishment has a percentage lease at a rate of 2.5% of gross monthly
sales. First quarter sales were: January, $5,270; February, $4,500; March, $6,320.
What was the total rent for the first three months?
● A) $350.00
● B) $402.25
● C) $450.50
● D) $500.00
Answer: B) $402.25
13. Building Type Definition
A type of building that is made up of nonspecialized interior floor space is called a(n):
● A) Office building
● B) Warehouse
● C) Loft
● D) Retail space
