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20
Oct

Practice Real Estate Rentals

Posted by on in Rental

Real Estate Practice Questions - Rentals

 

289        In a standard relationship between property management and owner, what is the frequency in which the manager should report to the owner?   QUARTERLY        BI-MONTHLY      MONTHLY           ANNUALLY          As far as a standard management agreement goes, a property manager must report with the owner on a quarterly basis. Remember that certain states and cities will have unique requirements concerning management laws.         Rental

290        What document must an owner of a rental property and a property management company sign in order for a management services to legally take effect?      PROPERTY MANAGEMENT AGREEMENT        SALES CONTRACT             LEASE    PURCHASE AGREEMENT               A property management  agreement is the agreement between the manager or management company and the owner of a rental property. A purchase agreement is a legal document that defines all terms and conditions in a real estate transaction between buyer and seller, including directions for escrow.  A lease is a contract between a tenant and an owner. The lease will convey the right of possession of the property from the owner to the tenant for a certain period of time as well as define the costs involved. A purchase agreement is a legal document that defines all terms and conditions in a real estate transaction between buyer and seller, including directions for escrow.           Rental

291        Tom has just sold his Single Family Home which is rented out to a tenant. The tenant still has 8 months left on his lease. What will happen to the tenant? THE TENANT AND THE NEW OWNER MUST HONOR THE ORIGINAL AGREEMENT          THE TENANT MUST MOVE OUT  THE NEW OWNER HAS THE OPTION TO REMOVE THE TENANT OR KEEP THE TENANT                 THE LEASE MUST BE RENEGOTIATED                When the property was sold, the lease goes with the land; the new owner must honor the current lease. If both the owner and the tenant wish to negotiate a new lease, they can do so if both parties agree.   Rental

292        The owner of a 3 unit rental property decides not to rent out one of the units to a family of a mother and her child because of the  children, the owner  HAS DONE NOTHING WRONG      IS IN BREACH OF THE CIVIL RIGHTS ACT OF 1866             IS IN BREACH OF RESPA                 IS IN BREACH OF THE FEDERAL FAIR HOUSING ACT              Under the Federal Fair Housing Act an owner of a rental property that is 4 units or less has the right not to rent to an individual with children. Real Estate Settlement Procedures Act (RESPA) was passed in 1972 to regulate all closing and settlement procedures as a result of lenders unethical practices in previous years, including the limit lenders can hold in reserves. The HUD-1 settlement statement can be reviewed by the buyer up to 1 day prior to closing. The HUD-1 Settlement statement details all components of the transaction including: agent commission, required items from the lender, escrow information, title charges, and other costs; HUD-1 Settlement can be viewed by both the buyer and seller. Rental

293        Fernando puts his four unit rental property on the market, a buyer meets the price and all other requirements but Fernando chooses not to sell to the buyer because it is a woman who has 5 children.  What law has Fernando breached?         FEDERAL FAIR HOUSING ACT        RESPA    CIVIL RIGHTS ACT OF 1866        FERNANDO IS NOT IN BREACH OF ANY FEDERAL OR STATE LAWS                Because Fernando is selling not renting, the Federal Fair Housing Act states he must not discriminate based on gender or the fact there may be children moving into the property. Real Estate Settlement Procedures Act (RESPA) was passed in 1972 to regulate all closing and settlement procedures as a result of lenders unethical practices in previous years, including the limit lenders can hold in reserves. The HUD-1 settlement statement can be reviewed by the buyer up to 1 day prior to closing. The HUD-1 Settlement statement details all components of the transaction including: agent commission, required items from the lender, escrow information, title charges, and other costs; HUD-1 Settlement can be viewed by both the buyer and seller. Rental

294        What best describes a trust setup by investors to buy rental property?         REIT       LLC         S-CORP      MUTUAL FUND                An REIT is a Real Estate Investment Trust. An REIT is a trust that is setup to help real estate investors avoid pay excess taxes but in return 90% of profits must be distributed back to the investors.               Rental

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  • Guest
    Fred Balthaz Sunday, 04 September 2016

    This is a very good practices for real estate students that desire to pass the national exam.

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