Property Management Exam 2025
Questions and Answers 100% Pass
What happens in the event of a deceased or incapacitated sole proprietor property
manager? - ✔✔All management agreements are terminated
Who may the Real Estate Commissioner issue a temporary license to? - ✔✔The
executor of the manager's estate
What is the executor's role? - ✔✔Close the affairs of the deceased or incapacitated
property manager
What does a property manager license allow an individual to do? - ✔✔Manage
rental real estate for other for compensation
A property manager may work with whom? - ✔✔Individually or in conjunction
with principal brokers and property managers
Under what name do property managers do business? - ✔✔Under their own
licensed name or under a registered business name
How many education hours does a property management license require? - ✔✔60
hours
What kind of agent is a property manager? - ✔✔General agent of a property owner
What can a property manager do? - ✔✔Rents or manages real property, hire and
supervise other property managers, supervise non-licensed employees who may
conduct limited property management activities
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,Property managers do not - ✔✔Facilitate sale, exchange, lease option, or purchase of
real estate, may not take listings, close transactions, or engage in other such
professional real estate activities, has no hiring or supervisory power over brokers
Non-licensed employees may conduct limited property management activities such
as - ✔✔signing rental agreements
How long can a property manager have another licensed person supervise his
business for? - ✔✔90 days
The Agency will provide a property manager with written notice at least - ✔✔5
business days before conducting a compliance review
When is a compliance review completed? - ✔✔When the Agency delivers a written
notice of completion to the property manager
How many days after the Agency completes a compliance review does the property
manager have to cure the noncompliance without sanction? - ✔✔30 days from the
date the compliance review is completed
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 that 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
If all noncompliance issues are not cured within 30 days the Agency may -
✔✔impose sanctions on the property manager or may initiate an investigation and
not allow additional time for the property manager to cure the noncompliance
When serving as the property owner's representative, the property manager must -
✔✔keep tenants content by maintaining the condition of the property
Financial responsibilities of a property manager - ✔✔Maximize the property owner's
long-term return on the investment in the property by optimizing rent level and
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
,reducing operating costs, prepare annual budgets, and a budget projecting monthly-
allowed expenses
What type of knowledge must a property manager have? - ✔✔Market knowledge
and be aware of market conditions and rents
Reasonable care and diligence - ✔✔They must have and maintain the care and skill
possessed by a competent, similarly situated property manager, and must provide
the property owner with all facts that might influence the property owner's decisions
regarding the property
A property manager is liable to the property owner for - ✔✔any loss caused by their
lack of care, and cannot escape responsibility by pleading ignorance or claiming that
they were following accepted management practices
A property manager serves as the owner's _____ to the tenants and must ____ the
owner's long term return - ✔✔representative; maximize
What is the responsibility of a property manager? - ✔✔Obtain the best possible
return on the owner's investment, preserve the owner's investment, provide
financial records and accounts
The basic goal of the professional property manager is to? - ✔✔get the highest
possible long-term, net return
Honesty and Good faith - ✔✔They must disclose all material facts about the
property to both the property owner and the tenants on the property
Loyalty - ✔✔A property manager cannot act in a way that is adverse to the interests
of the property owner in the property
Confidentiality - ✔✔A property manager must maintain the confidentiality of the
property owner's personal and proprietary information unless under court order or
otherwise required by law. A property manager must maintain confidentiality even
after the agency relationship has terminated.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
, Accounting - ✔✔A property manager must keep a record of all funds received and
disbursed on behalf of the property owner, and must make a timely accounting of
those funds. Further, the property manager must hold these funds in a Client's Trust
Account until date of payment is due.
Where must a property manager hold all funds received and disbursed on behalf of
the property manager? - ✔✔Client's Trust Account
Disclosure - ✔✔a property manager must disclose to the property owner, in a timely
fashion and in writing, when they have a financial interest in a business that
performs work on the property being managed. They must also provide monthly
and annual reports to the client as to the condition of the property
Advice - ✔✔A property manager has a duty to advise a property owner as to when
that property owner should seek expert advice, particularly the advice of an attorney
Who is the property owner's agent? - ✔✔A real estate property manager who
represents a property owner, for compensation, in the management of rental real
estate
A property manager is instructed by the property owner to paint the building for up
to $10,000.Without the owners knowledge and consent the manager could do which
of the following without failing to perform their fiduciary obligations to the owner.
1. Contract and bill the owner for $8,000 for the job and keep the other $2,000 as a
bonus.
2. Have a friend do the painting without disclosing who did the job.
3. Use the $10,000 as the most to pay and if possible get a quality job done well for
less.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 4
Questions and Answers 100% Pass
What happens in the event of a deceased or incapacitated sole proprietor property
manager? - ✔✔All management agreements are terminated
Who may the Real Estate Commissioner issue a temporary license to? - ✔✔The
executor of the manager's estate
What is the executor's role? - ✔✔Close the affairs of the deceased or incapacitated
property manager
What does a property manager license allow an individual to do? - ✔✔Manage
rental real estate for other for compensation
A property manager may work with whom? - ✔✔Individually or in conjunction
with principal brokers and property managers
Under what name do property managers do business? - ✔✔Under their own
licensed name or under a registered business name
How many education hours does a property management license require? - ✔✔60
hours
What kind of agent is a property manager? - ✔✔General agent of a property owner
What can a property manager do? - ✔✔Rents or manages real property, hire and
supervise other property managers, supervise non-licensed employees who may
conduct limited property management activities
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,Property managers do not - ✔✔Facilitate sale, exchange, lease option, or purchase of
real estate, may not take listings, close transactions, or engage in other such
professional real estate activities, has no hiring or supervisory power over brokers
Non-licensed employees may conduct limited property management activities such
as - ✔✔signing rental agreements
How long can a property manager have another licensed person supervise his
business for? - ✔✔90 days
The Agency will provide a property manager with written notice at least - ✔✔5
business days before conducting a compliance review
When is a compliance review completed? - ✔✔When the Agency delivers a written
notice of completion to the property manager
How many days after the Agency completes a compliance review does the property
manager have to cure the noncompliance without sanction? - ✔✔30 days from the
date the compliance review is completed
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 that 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
If all noncompliance issues are not cured within 30 days the Agency may -
✔✔impose sanctions on the property manager or may initiate an investigation and
not allow additional time for the property manager to cure the noncompliance
When serving as the property owner's representative, the property manager must -
✔✔keep tenants content by maintaining the condition of the property
Financial responsibilities of a property manager - ✔✔Maximize the property owner's
long-term return on the investment in the property by optimizing rent level and
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
,reducing operating costs, prepare annual budgets, and a budget projecting monthly-
allowed expenses
What type of knowledge must a property manager have? - ✔✔Market knowledge
and be aware of market conditions and rents
Reasonable care and diligence - ✔✔They must have and maintain the care and skill
possessed by a competent, similarly situated property manager, and must provide
the property owner with all facts that might influence the property owner's decisions
regarding the property
A property manager is liable to the property owner for - ✔✔any loss caused by their
lack of care, and cannot escape responsibility by pleading ignorance or claiming that
they were following accepted management practices
A property manager serves as the owner's _____ to the tenants and must ____ the
owner's long term return - ✔✔representative; maximize
What is the responsibility of a property manager? - ✔✔Obtain the best possible
return on the owner's investment, preserve the owner's investment, provide
financial records and accounts
The basic goal of the professional property manager is to? - ✔✔get the highest
possible long-term, net return
Honesty and Good faith - ✔✔They must disclose all material facts about the
property to both the property owner and the tenants on the property
Loyalty - ✔✔A property manager cannot act in a way that is adverse to the interests
of the property owner in the property
Confidentiality - ✔✔A property manager must maintain the confidentiality of the
property owner's personal and proprietary information unless under court order or
otherwise required by law. A property manager must maintain confidentiality even
after the agency relationship has terminated.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
, Accounting - ✔✔A property manager must keep a record of all funds received and
disbursed on behalf of the property owner, and must make a timely accounting of
those funds. Further, the property manager must hold these funds in a Client's Trust
Account until date of payment is due.
Where must a property manager hold all funds received and disbursed on behalf of
the property manager? - ✔✔Client's Trust Account
Disclosure - ✔✔a property manager must disclose to the property owner, in a timely
fashion and in writing, when they have a financial interest in a business that
performs work on the property being managed. They must also provide monthly
and annual reports to the client as to the condition of the property
Advice - ✔✔A property manager has a duty to advise a property owner as to when
that property owner should seek expert advice, particularly the advice of an attorney
Who is the property owner's agent? - ✔✔A real estate property manager who
represents a property owner, for compensation, in the management of rental real
estate
A property manager is instructed by the property owner to paint the building for up
to $10,000.Without the owners knowledge and consent the manager could do which
of the following without failing to perform their fiduciary obligations to the owner.
1. Contract and bill the owner for $8,000 for the job and keep the other $2,000 as a
bonus.
2. Have a friend do the painting without disclosing who did the job.
3. Use the $10,000 as the most to pay and if possible get a quality job done well for
less.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 4
