chapter 8 Flashcards by Dorothy Allan

A Real Estate agent does not need to be a member of TAR to use the TAR forms.
A. True
B. False

B. False

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Many property managers will not take an agreement for less than one year.
A. True
B. False

A. True.

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Leasehold is a form of land tenure.
A. True
B. False

A. True

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The parties to the Property Management Agreement are the owner and the broker.
A. True
B. False

A. True

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When the property has become uninhabitable, the tenant may do nothing.
A. True
B. False

B. False

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A person, other than a salaried or hourly employee of the owner, must have a real estate license to collect a fee for procuring tenants.

A. True
B. False

A. True

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The property manager may not file the eviction and appear before the JP to represent the landlord.

A. True
B. False

B. False

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Industrial Property Managers must be knowledgeable about tax rates, tax incentives, available labor force, commercial financing, and community services.

A. True
B. False

A. True

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Universal agency is not used in property management
A. True
B. False

A. True

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The property manager does not have a fiduciary obligation to anyone.

A. True
B. False

B. False

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The management plan itself will be the same for all owners.
A. True
B. False

B. False

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A licensed real estate agent may only give an unlicensed person a gift of $75 or more.
A. True
B. False

B. False

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As a professional counselor, you may want to develop good working relationships with other property managers on other properties to cross refer potential tenants.

A. True
B. False

A. True

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A person does not need a real estate license to manage property.
A. True
B. False

B. False

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Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined.

A. True
B. False

A. True

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It is a necessity that a property manager be current with applicable municipal, county, state, and federal Fair Housing laws and practices.

A. True
B. False

A. True

Modern leasehold estates can take one of several forms.

A. True
B. False

A. True

With the TAR Residential Leasing and Property Management Agreement, unless either party provides written notice of termination to the other party at least 30 days before the Expiration Date, the agreement will automatically extend on a monthly basis until either party terminates by providing at least 30 days written notice to the other party.

A. True
B. False

A. True.

While the dates of the Primary Term are stipulated in 3A of the form, 3B provides for the automatic extension.

Apartment buildings are often considered as commercial real estate, even though they are used for residences.

A. True
B. False

A. True.

Apartment buildings are often considered as commercial real estate because they are owned to produce income.

Some leases have early termination clauses that allow tenants to terminate the contracts under a specific set of conditions or when their landlords do not fulfill their contractual obligations.

A. True
B. False

A. True. As an example, a tenant may be able to terminate a lease if the landlord does not make timely repairs to the property.

Property management typically involves the managing of property that is owned by another party or entity.

A. True
B. False

A. True.

Property management is the overseeing of residential, commercial and/or industrial real estate, including apartments, detached houses, condominium units, and shopping centers, typically owned by another party or entity.

The business economy cycle describes the rise and fall in production output of goods and services in an economy.

A. True
B. False

A. True.
Business cycles are fluctuations in economic activity that an economy experiences over a period of time. The business cycle is characterized by expansion and contraction. During expansion, the economy experiences growth, while a contraction is a period of economic decline. Contractions are also called recessio

A universal agent has wide authority to act on another’s behalf, but a general agent or special agent has more limited and specific powers.

A. True
B. False

A. True.

General agents are contracted to represent their clients in specific types of transactions or proceedings over a set period. Special agents are authorized to make a single transaction or a series of transactions within a limited period.

What is one of the most fundamental fiduciary duties owed by an agent to his principal?

A. Confidentiality
B. Loyalty
C. Disclosure
D. Obedience

B. Loyalty. The duty of loyalty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest.

What is one of the most fundamental fiduciary duties owed by an agent to his principal? A. Confidentiality B. Loyalty C. Disclosure D. Obedience

Under the Texas Fair Housing Act, (Chapter 301) what is the time frame for the complaint to be filed after the discrimination occurred? A. Within six months B. Within nine months C. Within one year D. Within 18 months

C. Within one year. The law states: 'A complaint must be filed on or before the first anniversary of the date the alleged discriminatory housing practice occurs or terminates, whichever is later.' A complaint may be amended at any time.

When a property has become uninhabitable, and the landlord has refused to repair the property, the tenant may file a: A. Constructive eviction B. Foreclosure against the owner C. Judicial eviction D. The tenant must stay in the property until the lease is up.

A. Constructive eviction. The tenant will file the constructive eviction in the Justice of the Peace office in the area in which the property is located.

``` Paragraph 11 of the property management agreement gives information about: A. Broker’s fees B. Insurance C. Expenses D. Liability ```

A Broker's fees. Paragraph 11 concerns broker's fees, insurance is in paragraph 10, expenses is in paragraph 13, and liability is in paragraph 16.

The property manager acts as a ____________ to the owner of the property. A. Special agent B. General agent C. Universal agent D. Grand agent

B. General agent. A broker is a special agent for the seller or buyer. Universal agency is not often used in real estate.

``` Properties that can benefit from property management are: A. Residential B. Retail C. Farm D. All of the above ```

D. All of the above. Property managers can manage any and all types of property.

``` Property management is the operation, control, and oversight of: A. Commercial real estate B. Residential real estate C. Both A and B D. None of the above ```

C. Both A and B. Commercial and residential real estate. Property managers manage all types of property including multi-family, industrial, and office property.

When an economic slowdown continues in a downward spiral over an extended period of time, the economy falls into: A. Depression B. Recession C. Prosperity D. Recovery

A. Depression. The four answers are the four phases of a business cycle. Recession is a period that lasts approximately 6 months, a depression is longer in time.

The Fair Housing Act protected classes include: A. Race, color, national origin B. Religion, sex C. Handicap, familial status D. All of the above

D. All of the above. Race, color, national origin, and religion became law is 1968. Sex was added in1974; handicap and familial status was added in1988.