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Real Estate

Property Management

Question	Answer
Role of Property Manager	1. Accomplish owner's objectives 2. Maintain Property 3. Develop Plan for reserves 3. Establish a budget and maintain fiscal control
BOMA	Building Owners and Managers Association International, federation of local BOMA associations with over 16,000 members in North America. and represents nine billion square feet of commercial property
What do property zoning law control?	size of lots for proposed subdivisions, type of structures, use of the land, external appearance and style of structure, density of the property
what other items can Zoning property codes can also control?	# of units, setbacks
Who creates property codes?	Government agencies or community organizations
Texas property codes are organized as HOW?	16 Titles
In addition to state property codes, who else may have property codes?	cities and counties
Who are BOMA's members?	building owners, building managers, developers, asset managers, leasing professionals, and governmental officials.
BOMI	BOMA's educational institute
BOMA Magazine	official news magazine of the Building Owners and Managers Association International. news and information on legislative, regulatory and codes activities, statistical trends and forecasts, and emerging technologies impacting commercial real estate.
BOMA Mailing List Rental	If you are a member, you can rent the mailing list to send out marketing materials or other information you would like disseminated.
When is BOMA convention	generally held in June, the tradeshow is the highlight where vendors show off what is new and helpful
IREM	Institute of Real Estate Management (IREM), an affiliate of the National Association of REALTORS®, is a national organization that provides education, resources, and information for real estate management professionals.
Who doe IREM serve	both multi-family and commercial both nationally and internationally.
What are IREM Certifications for?	certification that states the person is competent and professional in the field of real estate management.
What certification does IREM offer?	Certified Property Manager (CPM), Accredited Residential Manager (ARM), Accredited Commercial Manager (ACOM) and the Accredited Management Organization (AMO). These certifications assist new property managers in securing good jobs in the industry.
Journal of Property Management	Published by IREM bi-monthly magazine contains a wealth of practical information for the property management professionals, including articles on
Which organization focuses on the shopping center industry?	ICSC
The NAA is an advocate for _______________	quality multifamily housing
Which organization has the Accredited Resident Manager designation?	IREM
What should a landlord do if it becomes necessary to reduce rent to fill vacancies?	Reduce the length of lease terms
Which of the following factors is unimportant in determining the amount of rent a landlord could charge?	Interest rates Location of property Condition of property Corporate entity
which expense is NOT included in the calculation of cash flow?	depreciation
BOMA	Building Owners and Managers Association; federation of associations with over 16,000 members. represents over nine billion square feet of commercial property.
CAI	Community Associations Institute; organization that includes property management firms, homeowner associations, and service providers.
ICSC	International Council of Shopping Centers is an organization that focuses on the shopping center industry
IREM	Institute of Real Estate Management; V NAR, national organization that provides education, resources, and information for real estate management professionals.
NAA	National Apartment Association is an organization whose mission is to advocate “quality rental housing.
NAIOP	National Association of Industrial Office Parks is an organization for industrial buildings, office parks, and mixed-use developments.
SIOR	Society of Industrial and Office REALTORS® is an organization of industrial and office real estate professionals associated with the National Association of REALTORS®.
TAA	Texas Apartment Association is the Texas affiliation of the NAA
ULI	Urban Land Institute is a non-profit organization that focuses on land use and real estate development.
property manager’s job	maximize the owner’s roi, effective marketing campaign, analyzing market data to help establish rent rates, manage tenants and tenant relations, manage the structures and outdoor areas, budget capital expenditures, keep records and manage risks
primary functions of property manager	Accomplish the owner’s objectives Maintain the physical integrity of the property Develop a plan for building adequate reserves for replacement Establish a budget and maintain fiscal control
What types of properties do Property managers manage?	Resorts Mobile home parks Planned Unit Developments (PUDs) Subsidized housing Time shares Hotels and motels Farms and ranches Residential housing Assisted living, nursing homes, and senior housing
Which organization focuses on the shopping center industry?	ICSC
The NAA is an advocate for _______________	quality multifamily housing
Which organization has the Accredited Resident Manager designation?	IREM
Demand	amount of a product or service desired by buyers. In real estate, this refers specifically to the number of people looking to purchase properties.
Economics	refers to the study of the production, consumption, and transfer of wealth.
Inflation	generally rising price of goods and services detailed in the Consumer Price Index (CPI).
Supply	the quantity of good or services that can be sold at a given price. In real estate, supply is made up of vacant land, residential properties, and commercial properties.
What items should the property management plan address to evaluate owner's goals?	Property analysis Tenant analysis Physical structure Staffing requirements Cost savings Market analysis Cash flow Budgeting
mark of a successful property management?	cash flow
examples of expenses that would be deducted from gross income:	mortgage payments, operating expenses and capital expenditures
t or f Depreciation is not included in the as an expense in the calculation of cash flow.	true
What should a landlord do if it becomes necessary to reduce rent to fill vacancies?	Reduce the length of lease terms
Which of the following factors is unimportant in determining the amount of rent a landlord could charge?	Interest rates Location of property Condition of property Corporate entity **
Blogs	websites used by individuals or companies to post regular commentaries or information on topics of interest.
Email Newsletters	electronic form of the former printed newsletters we used to get in the U.S. Mail on a regular basis.
Marketing	gets its services in the hands of as many customers as possible
YouTube	valuable for prospective tenants who are too far away to come to the property for a showing. It is easy to incorporate YouTube into your online marketing program.
what does preparing a marketing plan force you to do?	face your competition and compare the services your offer to theirs
most important thing you can do when developing a marketing plan	be very clear about your product and stay with the plan long enough to let it work.
When might an email be used to solve a problem rather than the phone?	If you cannot reach the person by phone after repeated attempts
Peter Property Manager has been receiving complaints about late night noise in a tenant's apartment. How should Peter handle the complaint?	A personal visit
What functions would a newsletter perform in a marketing plan?	Increase visibility Market services Develop leads
Attention Getters	important element of any ad, used to grab a reader's attention. Attention getters may include headlines with words as well as typefaces and layouts that attract customers with color, message, motion, or sound.
Desirability	Once you have the attention of the homebuyer, an ad should create desire by appealing to the senses and emotions. Wherever possible, the advertising should try to build mental images so the buyer can picture himself as the owner of the home.
MLS	cooperative listing service that provides greater market coverage for the listings within a designated area.
Visitor Rating Form:	Many agents will ask visitors, whether brokers or homebuyers, to fill out a rating form, giving their opinions of the property.
Residential properties can be marketing how?	Multiple Listing Service (MLS) Newspaper advertising Classified ads Web marketing Broker caravans Open houses Direct mail TV ads Radio Car signs Realtor conferences
six basic elements of advertising:	Choosing the right market Knowing when to advertise Knowing the profile of the buyers in that market Advertising the right property Using the right media Using effective advertising techniques
t or f studies show that buyers responding to an ad for a particular property will usually end up buying that exact property?	false-they normally buy a different property
When marketing residential properties, direct mail should be used _____________.	to reach specific audiences
The Texas Real Estate Commission can only regulate advertising by a broker in which instance?	To prohibit false, deceptive or misleading statements by the broker
What is an investor's primary concern in looking at a property to purchase?	Cap rate
Common Area Maintenance:	(CAM) If the lease is a "triple net" lease, it means the landlord will pass through to the tenants of the building the expenses for the common area. Try to negotiate a cap on CAM or get the landlord to agree to a set CAM amount.
Risk Management:	involves avoiding, managing and shifting risk to a third party through the purchase of insurance.
Uniform Electronic Transaction Act:	was passed in 1999 by the NCCUSL. This law made digital signing possible.
Property management functions fall into four general categories:	Marketing and Financial Tenant and Occupancy Facility Management Administration & Risk Management
property manager's job is	maximize the owner's return by: marketing, analyzing market data to help establish rent rates, managing tenants and tenant relations, managing the structures and outdoor areas, budgeting capital expenditures, keeping records and managing risks.
When choosing a specific location for the office, you will need to consider	accessibility, rent amount, parking, square footage, and interior office configuration. Do not bite off more space or amenities than you can chew. It is better to start small and add space than to get into a financial bind from paying too much rent.
It would be advisable to have an attorney represent you in the negotiation of your lease for office space, why?	Comm. leases are written for owner, a good real estate lawyer will know which clauses are troublesome. All provisions are negotiable. When market is slow, landlords will negotiate much more willingly. they will give rent perks to get tenants in the door.
what factors determine your staffing needs as a prop mgr?	Number of units being managed Scope of responsibilities Number of properties being managed Number of employees, whether on-site or off-site Type of units being managed Budget
What types of activities will prop mgr's staff do?	leasing agents, handle advertising and marketing, and to handle record keeping, rent collection, and financing issues. The more properties you manage, the more people you need.
Which of the following should not be part of a job application form?	Education history Medical history ** References Job history
If rent increases in a lease for your office space are tied to the CPI, what should you do?	Set a cap on the increases
What are the advantages to using a recruiter to fill positions for you?	They screen the applicants., and They save you time.
Assets	Cash Accounts , Fixed Assets, Reimbursable expenses
cash accounts	rent and security deposits
fixed assets	land and building improvements, furniture, fixtures and equipment, accrued depreciation
Liabilities	Current Liabilities (accounts payable, Fixed Liabilities (recurring payables
possible revenues:	Rent Late fees CAM recoveries Property tax recoveries Insurance recoveries Utilities recoveries
Operating Expenses	Elec , H20 & sewer, Janitorial, Trash removal , Roof repairs, Elec,, HVAC, Parking lot, & Plumbing repairs, Parking lot sweeping, Exterior repairs and maintenance, Pest control, Landscaping, Security, Lease commissions, Tenant improvements, Mgmt fee
General Ledger	n active, live document in that it is always in motion. It records every transaction from deposit to withdrawal to interest and fee additions.
General Ledger entries	Base rent (+) Common area billings (-) Common area recoveries (+) Property tax payments (-) Property tax recoveries (+) Insurance payments (-) Insurance recoveries (+) Utilities (-) Reimbursed utilities (+) Legal fees (-)
additional GL entries	Legal fee recoveries (+) Mtg payments (-) Mgmt fee (-) Disburs. (-) Tenant improve. (-) Lease comm. (-) Escrow for bad debt (-) Insur escrow (-) Prop tax escrow (-) Sec deposits (+) Repairs and maintenance (-) Depreciation and amortization (-)
At the bottom of the ledger should be what?	running totals for each category
Operating Expenses	includes all utilities, janitorial services, repairs and maintenance.
Return on Investment: (ROI)	Owners of property will likely perform an analysis of the improvement to decide whether the improvement will be a good return on their investment.
Variance	shown as a dollar amount, positive or negative, and as a percentage over or under budget
When are reports sent from Prop Mgr to owner?	Some are sent monthly; others quarterly or annually. Depending on the size and type of property being managed, the owner's package will contain some combination of reports.
most valuable reports in the package	property inspection report, owner and investors will want to have a visual experience of the property
As important as it is to inform your owner/client about the condition of his own property, it is equally important that you communicate your knowledge of what else?	surrounding market and the competing properties.
In order to do an effective market study you must	Drive the market area yourself
All of the following are examples of revenue on the Cash Flow Statement except	CAM recoveries Base rent Property taxes ** Late fees
Which one is a possible source of revenue for an apartment complex?	Cell phone tower Laundry facilities ** Percentage rent Interest on security deposits
Sole Proprietorship	unincorporated business that is owned by one individual.
Corporation	legal entity or structure created under the authority of the laws of an individual state, where a person or group of persons become shareholders. separate and distinct from that of its members
Partnership	relat of 2 or more who join to carry on a business. Partners contribute $$, property, labor, and expects to share in profits & losses. The term "partnership" includes a limited partnership, syndicate, group, pool, joint venture, or other unincorp org,
Estate	legal entity created as the result of a person's death. consists of real and/or personal property
estate exists until when?	the final distribution of the assets is made to the heirs and other beneficiaries.
Trust	arrangement through which trustees take title to property for the purpose of protecting or conserving it for the beneficiaries.
trust may be created when?	during an individual's lifetime or at the time of his or her death by will.
Limited Liability Company (LLC)	entity formed under state or foreign law by filing articles of organization as an LLC. Unlike a partnership, none of the members of the LLC are personally liable for its debts. An LLC can be single or multi-member.
whether you employ one or a hundred people, you will have to file	quarterly tax returns to the IRS.
filing Form 941	file if: paid Wages, Federal income tax withheld from employees, Tips your employees have received, Employer's and employee's share of Social Security and Medicare taxes, EIC payments, Credit for COBRA
FUTA	Fed Unemploy Tax Act, if you paid wages of $1,500 or more to workers who were not either farm workers or household workers, during the previous tax year, you must file and pay unemployment taxes. Employers should check the IRS site annually for updates
Economic Obsolescence	something outside the property causes a loss in value, social causes such as a declining neighborhood, legislative regulations, environmental changes, and adverse zoning changes.
Form W-7	application for IRS Individual Taxpayer Identification Number (ITIN)
Functional Obsolescence	certain features being outdated or obsolete, poor architectural design or construction style, or other changes that cause the property to be less useful than it once was, or than other properties in the market.
Texas Workforce Commission: (TWC	government agency charged with overseeing and providing workforce development services to employers and job seekers of Texas.
two different and distinct reasons to perform an income analysis:	1. report the actual income for a property. 2. is to do budget projections. One is based on history; the other on estimates.
You are responsible for accurate reporting to whom?	owner and possible investors
estimating potential gross rent is done by considering what?	Market rent in comparable properties in the trade area Current and anticipated market conditions Future rental rates Occupancy levels of comparable properties
Rather than issuing a W-2 to a consultant, a business owner who paid a consultant for services would issue a _____ at the end of the year.	1099
What is one of the first things you should do when starting a new business?	get EIN
Performance Standard	Broker must use reasonable care and discretion when performing under the agreement and must treat all tenants fairly and honestly.
Reserves	wner will deposit a set amount per unit into the Broker's trust account for use as a "reserve." The Broker may use the reserve to pay expenses, including the Broker's fees.
How do you describe the property to be managed	his description will include the real property as well as any personal property.
Primary Term in a property management agreement is:	the term without any extensions or modifications. Most management agreements are for one year's term.
Under the residential agreement, the Broker will be both the what?	leasing and managing authority
Under the commercial agreement, the Owner might decide to use a different Broker to what?	Lease and manage the propterty
Broker is obligated to maintain accurate property records for at least how many years?	4
What is the difference between the two commercial and residential agreements	the frequency of reporting.
Both commercial and residential agreements contain the following Owner representations:	1. Owner has fee simple title and legal authority to lease 2. not delinquent in the payment of any taxes or fees 3.property is not subject to the jurisdiction of any court 4. All info that Owner provides to Broker is true and correct
commercial agreement requires the Owner to purchase what type of insurance?	rental replacement insurance in an amount not less than the annual expected rentals of the Property
The residential agreement requires owner to purchase what type of insurance?	It does not impose a rental replacement insurance requirement upon the Broker
Paragraph 16A provides that the Broker is not liable for what?	personal injury to any person or for loss or damage to any person's real or personal property resulting from any act or omission not caused by Broker's negligence.
Under the management agreement, how many days prior to the end of the term must notice of termination be given?	30
Which power is not given to a commercial property manager?	he power to put a lockbox on the property
The management agreement can be modified by ____________.	written agreement
Condominiums	ype of property ownership where the owner of the unit owns the unit but does not own anything beyond the four walls of his or her unit.
Housing Cooperative	corporation or other legal entity that owns real estate. Usually, there are multiple units in a housing cooperative. Each shareholder or member of the legal entity is entitled to occupy one housing unit.
Planned Unit Development	type of building development with a designed grouping of varied and compatible land uses, such as housing, recreation, commercial center, and industrial parks, all within one contained development or subdivision.
Single-Room Occupancies: (	SROs) are units with a single bedroom and bath.
Time Share	interest in unit where the owner of the interest has the right to use a unit during a designated period of time during the year. The interest is either a fee simple (ownership) interest or a leasehold interest over the course of a certain number of years.
downside of managing an SRO	that these properties tend to attract undesirable tenants. The property manager must be diligent in conducting background checks on applicants.
Undesirable tenants can cause what problems with your management?	chase away desirable tenants, cause damage to the property, and endanger others.
Resort management	managing seasonal rental units in resort areas
In a resort management agreement, what with the manager do?	book the units, collect the fees, and oversee the cleaning and maintenance of the unit for a fee.
Resort management cleaning fees can be steep- How steep?	as high as 50% in some areas.
management agreement covers what areas of agreement?	advertising and other promotional obligations, maintenance, housekeeping, rent collection and all other aspects of the contract between the unit owner and the management company.
What laws governing the operations of mobile home parks does Texas have?	While 36 other states have laws, Texas does not
What are some present management opportunities for property managers	condominiums, cooperatives, planned unit developments, and mobile home parks. Subsidized housing
ranch manager is responsible for what types of duties?	agricultural-related decisions, like soil management, crop selection and rotation, and water management, as well as labor management, equipment purchases, human resources, immigration issues, and veterinary management.
What is the biggest expense in managing a resort?	Housekeeping
The primary issues with managing single-family residence are maintenance and _________________	tenant qualification
How often must the Meetings of the association be held?	At least once per year
Escalation Clauses	in leases are those provisions establishing how the rent will be increased over a period of time.
Estate at Sufferance	when a tenant stays past the term of the lease, he/she is known as a holdover tenant because he/she is unlawfully in possession of the property
How does Landlord handle estate at sufferance?	evict the tenant through the court; in other words, he cannot lock the tenant out, turn off utilities, or forcibly remove the tenant.
Estate for Years	has a definite beginning and ending date. Try and remember that an Estate for Years begins with a year and ends with a year.
Fee Simple:	owns the bundle of rights.
Freehold Estate	simply, "I own the property." It is what we think of as "ownership." There is no definite ending date. The estate lasts at least a lifetime because the property can be willed to a person's heirs.
Life Tenant	possesses an incomplete bundle of rights for his/her lifetime. Once the life tenant dies, the life estate portion reverts to the grantor, who once again has the complete bundle of rights.
How does a cooperative operate financially?	cooperative receives all the money from the "tenants" and then pays mortgages, taxes, insurance payments, etc. as well as maintenance of the property and all other costs
If too many stockholders do not pay their obligations in the "co-op, what can be the consequences?	"co-op" would not be able to pay mortgages, taxes and other expenses, and could lose the entire property through foreclosure.
If too many stockholders do not pay their obligations in a condo, what can be the consequences?	if one unit cannot pay, then only that unit would be lost through foreclosure.
Gross leases	the tenant pays a fixed rent, and the landlord pays all the expenses associated with the property, including taxes, insurance, and maintenance
t or f Almost all residential leases are gross leases, with the exception of some single-family residential leases that have the tenant taking care of maintenance or some other items.	true
Net leases	tenant pays and is responsible for the taxes, insurance, and maintenance of the premises.
In a net lease, what is landlord responsible for?	providing hot and cold water, air conditioning, janitorial services in the common areas, exterior maintenance of the structure, and parking lot maintenance.
where do you usually see a net lease?	commercial leases
Which of the following is not typical for a holdover clause?	It arises when a tenant refuses to leave at the end of the lease The landlord may increase the rent significantly It puts the tenant on a year to year lease term ** It is terminable by the landlord
A "bump" clause is synonymous with which other clause?	escalator
In a gross sales calculation from a percentage lease, which of the following would not be included in the calculation?	Sales from a tenant's satellite office ** Sales from a kiosk within the tenant's leased premises Sales made by phone to the tenant's store Sales occurring as a result of a phone call to the tenant's store
Americans With Disabilities Act of 1990	(ADA) extended the same protections against discrimination as had been previously granted in the Civil Rights Act of 1964 to those categories such as race, gender, religion and national origin.
Lease Commencement Date	usually the date of the latter signature of the two parties, nearly always the lessor.
Power of Attorney	gives someone the right to sign certain legal documents on another person’s behalf.
Rent Commencement Date	takes into account any waived rent or time for Tenant build out or Landlord construction.
Tenant Insurance Requirements	set amount of insurance requiring that the landlord be named as additional insured.
What communication is expected of Texas Real Estate Licensing Act (TRELA)?	requires broker disclose his representation of a party upon first contact with a party. There is no requirement that the disclosure be in writing; however, it is always safer to do so, to avoid a misunderstanding in the future
t or f During the term of the lease, the Tenant can change its use without the Landlord's consent	False - all use changes must be approved by owner
Use Clause	specify any prohibited uses and exclusive uses of other Tenants that cannot be violated.
The listing agreement and the representation agreement expressly state what?	That a broker does not have the authority to bind the owner to an agreement.
Which one of the following is not an alternative to a Personal Guaranty?	Prepaid rent An increased security deposit Leaving only the corporation on the hook ** A Letter of Credit
What qualification documents are not needed for a start-up company? Business Plan Commerical Lease Addendum Personal Guaranty Form Personal Financial Statement	Commerical Lease Addendum
The listing agreement and the representation agreement expressly state what?	That a broker does not have the authority to bind the owner to an agreement.
When can a Tenant change its use in a retail center?	When the Landlord grants a request to do so in writing.
What is the purpose of a Power of Attorney?	It is a legal document giving a third party the right to sign binding documents in a person's absence.
Marketing involves finding customers and _________.	selling to them
What is the most important thing to do when implementing a marketing plan?	stay with the plan long enough for it to work
When might an email be used to solve a problem rather than the phone?	If you cannot reach the person by phone after repeated attempts
Which of the following would be a good source for finding new clients? Real estate developers REO departments Trade Associations all of the above	all of the above
What functions would a newsletter perform in a marketing plan?	Increase visibility, Market services, Develop leads
Peter Property Manager has been receiving complaints about late night noise in a tenant's apartment. How should Peter handle the complaint?	A personal visit
Which type of tenant will be most interested in the co-tenancy of the property?	Retail
Which type of tenant will be most interested in the amount of storefront glass in a lease space?	Retail
Regulation Z covers what?	The Truth in Lending Act
When marketing residential properties, direct mail should be used _____________.	to reach specific audiences
Which of the following is NOT considered a special purpose building? Medical Office, church, skating rink, Grocer-anchored shopping center?	Grocer-anchored shopping center
Which types of advertising can be regulated by the Texas Real Estate Commission?	Bait-and-switch ads
Which property types requires the least amount of hands-on management?	industrial
escalation clause	A lease clause that allows for set increases in rent
In order to do an effective market study you must	Drive the market area yourself
What is the purpose of a market survey?	It helps you to understand the market and communicate your market knowledge to the owner
Which one is a possible source of revenue for an apartment complex? Cell phone tower Laundry facilities Percentage rent Interest on security deposits	laundry
Which kind of properties will you probably not be asked to manage?	A senior living center
All of the following are examples of revenue on the Cash Flow Statement except: CAM recoveries Base rent Property taxes Late fees	property taxes
What is true about an ITIN?	It is used for tax reporting purposes only
What is your best source for information on retail market data?	IREM
Rather than issuing a W-2 to a consultant, a business owner who paid a consultant for services would issue a _____ at the end of the year.	1099
What are some examples of additional rent that can increase the income of a property?	Kiosk rent Food court Percentage rent
What is the simplest form of business ownership?	sole prop
What is your best source for information on retail market data?	ICSC
How is effective gross rent calculated?	Potential gross rent – vacancy and credit loss + additional secondary income = effective gross rent.
What type of coverage includes fire, riot, vandalism, theft, glass breakage, lightning, hail, smoke and explosion?	Dwelling policy
What would indicate a person is an employee rather than an independent contractor?	The person receives health insurance benefits. among other things
Which of the following would not be a primary function of a property manager? To prepare a CMA To maintain the property To establish a budget To develop reserves	To prepare a CMA
REALTORS® Residential Lease Form 2001	residential lease specifically for use by members of the Texas Association of REALTORS®.
Texas Apartment Association Lease Contract	The Texas Apartment Association’s leases and forms are the most comprehensive and recognized lease contracts and property management forms in the state. Forms are regularly updated to comply with state law, court decisions, and member experiences.
All of the following would be considered a health or safety hazard except _________.electrical problems a broken latch malfunctioning lights broken air conditioning	broken air conditioning
The landlord must mail the tenant the security deposit and an itemized accounting of deductions no later than _____ days after surrender or abandonment.	30
Under the TAA lease, rent cannot be paid with _________	cash
Which are some conditions to conducting a business from a residential unit?	no client visits, Business must be conducted by computer, mail or telephone, tenant cannot use the apartment to conduct business unless it is an "at home" business
Under the TAA lease, the landlord must use_______________ to relet the premises if the tenant moves out early.	customary diligence
Maintain the Yard	perform activities such as mowing, fertilizing, and trimming the yard; controlling pests in the yard; and removing debris from the yard.
TAR 2001 Residential Lease	a residential lease specifically for use by members of the Texas Association of REALTORS®.
Yard	all lawns, shrubbery, bushes, flowers, gardens, trees, rock or other landscaping, and other foliage on or encroaching on the Property or on any easement appurtenant to the Property, and does not include common areas maintained by an owners' association.
The TAR 2001 Residential Lease sets forth that the tenant, at the tenant’s expense, must:	dispose of all garbage, Supply and change heating and air conditioning filters at least once a month, Replace any lost or misplaced keys, Remove any standing water
for all needed repairs tenant must:	notify landlord in writing
t or f The lease does not require the tenant to water the yard at reasonable and appropriate times to avoid dry damage to the lawn.	false
Pool/Spa Maintenance Addendum	should be attached to the lease to address maintenance of these items.
t or f tenant may not Permit any water furniture on the Property	true
If the tenant fails to comply with the maintenance requirements, the landlord may:	perform the action the tenant neglected and invoice the tenant for the cost.
If a repair person is unable to access the Property after making arrangements with the tenant to complete the repair:	the tenant will pay any trip charge the repair person may charge. The landlord may require advance payment of repairs or payments for which the tenant is responsible.
What remedies may be available to the tenant for repairs?	Terminate the lease and obtain an appropriate refund Have the condition repaired or remedied Deduct from the rent the cost of the repair
Installation of security devices requested by the tenant are handled how?	will be paid by the tenant in advance.
Rent during the holdover period is how much?	three times the normal monthly rent, calculated on a daily basis.
How can landlord recoup money from late or nonpaying tenant?	Landlord will have a lien for unpaid rent against all of the tenant's nonexempt personal property that is in the property and may seize such nonexempt property if the tenant fails to pay rent.
Tenant's leasehold interest will be subordinate, or inferior to what:	Any lien or encumbrance now or later placed on the Property by Landlord All advances made under any such lien or encumbrance The interest payable on any such lien or encumbrance
The priority of liens depends upon ____________.	the order in which they arise
what is not a repair expense to be borne by the landlord?	damage caused by tenant
Abandonment	when all occupants have vacated the Property, not timely paying rent, landlord has delivered written notice to tenant, by affixing it to the inside of the main entry door or outside if cant get in
if landlord puts notice on property inside or outside door, what must it say?	landlord considers the Property abandoned, and tenant fails to respond to the affixed notice by the time required in the notice, which will not be less than 2 days from the date the notice is affixed to the main entry door.
Initial Term	of a lease is also called the "Primary" term. For a residential lease, one year is a typical primary term.
Normal Wear and Tear	means deterioration that occurs without negligence, carelessness, accident, or abuse.
Surrender	all occupants vacated Prop, in Landlord's judgment, & 1 of following occurs: a) date tenant specifies as move-out in a written notice to Landlord has passed; or b) tenant returns keys and access devices that Landlord provided to tenant under this lease
Time is of the Essence	means that the dates and time frames within the contract must be strictly adhered to.
can non-realtors use the TAR Residential Lease is a form created by the Texas Association of Realtors?	no
What should landlord do with any personal property being leased to the tenant?	list on lease
t or f If the tenant cannot occupy the property because of construction, the tenant may terminate the lease by giving written notice, and the landlord must refund the security deposit plus any rent paid.	true
does a lease automatically renew?	no, A lease does not automatically renew unless there is language in the lease providing for automatic renewal
t or f the tenant can pay rent in cash?	false
late fee is comprised of :	initial late charge equal to a flat rate or a percentage of one month's rent and an additional late charge that is a flat fee per day until rent and late charges are paid in full.
t or f The tenant will have to pay a bad check charge plus late fees until the landlord receives payment.	true
The landlord may apply funds received from the tenant first to what?	any non-rent obligations
definition of "pet"	includes any mammal, reptile, bird, fish, rodent or insect.
Any interest earned on the security deposit will belong to whom?	landlord, and the landlord may place the security deposit in an interest-bearing account.
The tenant must give the landlord at least ______days written notice of surrender before the landlord is obligated to refund or account for the security deposit.	30
When does the Property Code obligate a landlord to return the security deposit	when the tenant surrenders the property and gives the landlord a written statement of the tenant's forwarding address.
If the deductions exceed the security deposit, the tenant must pay the difference to the landlord within how long?	ten days after the landlord makes a written demand for the money.
The list of deductions is what from a landlord?	intended to be an exhaustive list and has enough general provisions that the landlord should be fully protected in the event of dispute about security deposit
What is the function of the Inventory and Condition Form?	To put the parties on notice of any defects in the property
How much notice must a landlord provide a tenant prior to removing an unauthorized pet?	24 hours
Under most circumstances, a tenant should consider themselves to be prohibited from keeping pets unless:	The parties have agreed otherwise in writing
What should the landlord list?	Any personal property being leased to the tenant
How many days grace period does a tenant get before late charges begin to accrue?	0, unless shown differently in the TAR Lease
Under most circumstances, a tenant should consider themselves to be prohibited from keeping pets unless:	The parties have agreed otherwise in writing
Guaranty	a promise by a third party to pay a debt or perform an obligation of a party to a contract if the party defaults and fails to pay or complete the obligation.
TAR 2003	Residential Lease Application. The Application is extremely important for the landlord, as any misrepresentations that are made can give rise to a default under the Lease and termination of the Lease by the landlord.
TAR 2004	the Pet Agreement Addendum that should be prepared and completed by the prospective tenant if the landlord allows pets and if the tenant has pets.
TAR 2009	Addendum Agreement for Application Deposit and Hold on Property. This document would be used if the applicant wanted to put a deposit on the rental unit in order to hold the unit off the market until the landlord has approved the applicant to be a tenant.
Each occupant of a unit and each co-applicant 18 years or older must what with regard to lease?	submit a separate application. You should recall that the landlord wants each occupant to sign the lease so that the landlord will have multiple tenants responsible for the rent.
Authorization to Release Information Related to a Residential Lease Applicant.	This form is filled out by the tenant, who states that he/she is applying to lease property at the address stated on the Form. The applicant inserts the landlord, broker, or landlord's representative's name, address, fax and email information.
What fees does a applicant pay for?	non-refundable application fee, security deposit upon execution of a lease , application deposit to hold the property,
Who is susceptible to LBP exposure?	Children and pregnant women
There are two versions of TAR 2005, the Addendum for Extension of Residential Leas. When do you use them?	The first version is used if the lease that is being extended was executed prior to October 16, 2007. The second version is used if the lease that is being extended was executed on or after October 16, 2007.
What happens if the tenant does not sign a lease extension?	The lease will renew on a month-to-month basis
Guaranty	A promise to pay the debt of another
Why are there two versions of the Extension of Residential Lease?	One is to use for leases executed prior to October 16, 2007
Credit Reporting Agencies	gather information about where people live and work, how reliable they are in paying their bills and whether they have been sued, arrested or filed for bankruptcy.
Credit Score	called a "FICO." The scores range between 300 and 850. The higher the score, the lower the risk for creditors.
Characteristics of a good tenant	Pays the rent on time, Takes care of the property, does not disturb neighbors or complain, Abides by all the rules , Is stable, remaining in the property beyond the original term
Tenants will not look elsewhere to live if:	they are happy and comfortable in their existing surroundings.
what to do if tenant breaks lease?	Follow this notification with a notification in writing and give the tenant a short window (three days) to reclaim the keys and pay any past due rent.
t or f The residential lease does not provide the tenant with a "cure" period	true-If the tenant fails to pay the rent on time, it is a breach. There is no grace period and no way for the tenant to cure the breach.
What would provide good information about a prospect's finances?	Information from a bank Credit card balances Loan balances
If the landlord evicts a tenant as a consequence of the tenant's reporting the landlord to the building inspector, it is called ____________.	retaliatory eviction
A landlord can reject an applicant for _________.	any reason except discrimination
Dwelling	is defined as one or more rooms rented for use as a permanent residence under a single lease to one or more tenants.
Landlord	Landlord
lease	means any written or oral agreement between a landlord and tenant that establishes or modifies the terms, conditions, rules, or other provisions regarding the use and occupancy of a dwelling.
Premises	tenant's rental unit, any area or facility the lease authorizes the tenant to use, and the appurtenances, grounds, and facilities held out for the use of tenants.
Tenant	means a person who is authorized by a lease to occupy a dwelling to the exclusion of others and, for the purposes of Subchapters D, E, and F, who is obligated under the lease to pay rent.
what chapter contains a number of provisions that give rise to causes of actions by either the landlord or the tenant?	92
when is the only time a landlord can interrupt utilities?	interruption is for repairs, construction or an emergency.
landlord cannot prevent a tenant from entering the leased premises except by judicial process unless the exclusion results from:	repairs, construction or an emergency, Removal of abandoned contents, Changing the door locks on the tenant's unit if the tenant is delinquent in paying part of the rent
If the tenant is delinquent in rent, and the landlord locks the tenant out, the landlord must:	put a note on the door stating why locks are changed
Before a landlord can lock out a tenant because the tenant is delinquent in paying rent, there must be:	provision in the lease that allows the landlord to do so.
Before a landlord can lock out a tenant, how far in advance must he warn them?	The landlord must provide the tenant notice five calendar days prior.
If landlord changes lock and does not provide tenant a key, the tenant may:	Recover possession of the premises or terminate the lease Be entitled to a civil penalty of one month's rent
Can Landlord change locks if tenant is in the dwelling?	no
how often can a landlord lock a tenant out?	not more than once in a rental payment period?
tenants rights after unlawful lockout?	file with the justice court in the precinct where the rental property is located, a sworn complaint for reentry, writ of reentry is served on the landlord, landlord is entitled to a hearing ,
landlord fails to comply with the writ of reentry?	contempt of court
maximum number of adults that a landlord may allow to occupy a dwelling	three times the number of bedrooms.
Who may file a suit against the landlord?	Anyone who owns or leases a dwelling within 3,000 feet of a dwelling in which the violation exist.
the landlord must accept a tenant's cash rental payment if timely made under what circumstances?	if the rental agreement is silent
t or f A landlord must give prior written notice regarding rules that will affect any personal property.	true
Commercial Rental Property	Every rental property that is not residential is included within the definition of "commercial rental property."
Estoppel Certificate	is a sworn statement by the tenant about the status of any defaults, payments, obligations, and terms of the lease.
Uniform Residential Landlord and Tenant Act: (URLTA)	was drafted in 1972 and was intended to make residential landlord and tenant laws fair to all parties and more relevant to rentals in a modern urban setting.
landlord may remove and store any property of a tenant under what circumstances?	that remains on premises that are abandoned
When can a landlord dispose of tenant's abandoned property?	if the tenant does not claim the property within 60 days.
If landlord changes locks the landlord must put a notice stating what on the front door?	the landlord or agent must place a written notice on the tenant's front door stating the name and the address or telephone number of the individual or company from which the new key may be obtained.
How long does landlord have to return security deposit?	The landlord has 30 days after the date the tenant surrenders possession of the premises and provides a forwarding address
t or f The tenant's claim to the security deposit takes priority over all other claims, including a trustee in bankruptcy's claim.	true
does the landlord have to provide and itemized list with security deposit refund?	yes
withholding payment of the last month's rent on the grounds that the security deposit is security for the last month's rent is presumed to be:	acting in bad faith
penalty for bad faith	three times the rent wrongfully withheld and the landlord's reasonable attorney's fees in a suit to recover rent.
Which of the following is justification for a landlord to interrupt the utilities of a commercial tenant? Non payment of rent Breach of the lease Construction Retaliation	construction
What is the tenant's penalty for withholding payment of the last month's rent on the grounds that the security deposit is security for the last month's rent?	3 X the rent wrongfully withheld
Before disposing of abandoned property, what must a landlord do?	deliver a notice to the tenant by certified mail
What is the penalty for failing to provide a written description of deductions from the security deposit in a commercial lease?	A forfeiture of the right to withhold the security deposit in the event of damages, and is liable for the tenant’s attorney’s fees.
Escrow Account	special type of bank account that is established by the property manager to retain funds the property manager has collected on behalf of someone else.
fixture	item that is affixed to the premises that cannot easily be removed without causing damage to the surface to which it is attached.
Security Deposit	is any advance of money, other than a rental application deposit or an advance payment of rent that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant.
does TX dictate how much you can charge for a security deposit?	no, but other states do
When do property managers open separate escrow accounts?	only in situations in which the amount being held is significant, and the beneficiary wants it held in an interest-bearing account.
"Escrow Accounting Equation"	mandates that if a snapshot is taken of the account at any given point in time, the reconciled escrow bank account cash balance must equal the escrow account liabilities found in the contract.
§92.104 requires a landlord to give a tenant what?	an itemized list of the deductions from the security deposit only if the tenant owes no rent and there is no dispute over the amount of rent owed.
t or f Chapter 92 regarding security deposits do not apply to commercial leases	true, only residential
Which of the following may be put into an operating account? Security depo Guest deposit Rental application fees Advanced fee contracts	Rental application fees
What does TX property code do to protect tenants in chap 92?	prohibits landlords for retaliating against tenants for exercising remedies against the landlord for violations of the Property Code.
types of retaliation, A landlord may not, within six months after the date of the tenant's action under Subsection (a), retaliate against the tenant by:	eviction proceeding, Depriving the tenant of the use of the premises, Decreasing services, Increasing the tenant's rent or terminating the tenant's lease, materially interfere with the tenant's rights under the tenant's lease.
Sims v. Century Kiest Apartments	Willie Sims at apt 9 yrs, apt deteriorating, complaint to city about housing and health code violations, Landlord sent notice to vacate, it was decided that a landlord can not evict to retaliate.
3 situations a tenant might take to spark landlord liability:	tenant tries to make authorized remedy, gives landlord (LL) notice to repair, tenant complains to gov agency for bldg or housing code violation
acting in good faith	must believe the complaint or statement is true and valid
2 situations not considered retaliation by a LL:	1. Proof that the action is non-retaliation 2. When the landlord has the legal right to take the action.
valid grounds for eviction under any circumstances:	delinquent rent, property damage, personal safety threats, breach of lease, hold over, disrupts neighbors, affects health and safety of others,
Tenants remedies for LL retaliation	1. 1 mo rent + $500, actual damages, court costs, reasonable attorney fees, moving costs, civil penalties, declaratory or injunctive relief,
Punitive damages	those damages that the court assesses against a defendant as punishment
Actual damages	are those out of pocket damages that are a direct result of the defendant's actions. (cost to secure an alternative property, cleaning fees, temporary housing, meals, travel, etc.) those that can be documented by the tenant.
Declaratory or injunctive relief	remedies in "equity" meaning that there are no damages associated with them.
Declaratory judgement	a judgment by the court interpreting a document that is in dispute. For example, if a contract or lease has language that is confusing and the parties need the court to interpret its meaning, one party might seek an action for declaratory relief.
injunction	an order by the court for a party to do something or refrain from doing something.
bad faith	If a tenant files or prosecutes a suit for retaliatory action based on a complaint asserted, inspector determines violation of a building or housing code does not exist
What is the LL remedy if tenant files suit in bad faith?	may recover possession of the dwelling unit and may recover, from the tenant, a civil penalty of one month's rent plus $500, court costs, and reasonable attorney's fees.
application deposit	means a sum of money that is given to the landlord in connection with a rental application that is refundable to the applicant if the applicant is rejected as a tenant.
applicant or rental applicant	means a person who makes an application to a landlord for rental of a dwelling.
co applicant	means a person who makes an application for rental of a dwelling with other applicants and who plans to live in the dwelling with other applicants.
deposited	means deposited in an account of the landlord or the landlord's agent in a bank or other financial institution.
Landlord (LL)	means a prospective landlord to whom a person makes application for rental of a dwelling.
are application fees refundable?	yes, if the tenant is not accepted as a tenant but are non-refundable if the tenant is accepted
TX statute provides that the applicant is deemed rejected by the landlord if the landlord has not given the applicant notice of acceptance within how many days?	7
t or f If the landlord rejects one co-applicant, it will be considered a rejection to other co-applicants.	true
How can LL give notice of applican, t rejection?	phone or mail applicant or co applicant
Penalties for LL not refunding a rejected applicant's application fee	for an amount equal to the sum of $100, three times the amount of the application deposit, and the applicant's reasonable attorney's fees in a suit to recover the deposit.
A landlord shall disclose to a tenant, or to any government official or employee acting in an official capacity, according to this subchapter:	either a street or post office box address of the holder of record title, of the dwelling rented by the tenant; If an entity located off-site from the dwelling is primarily responsible for managing the dwelling
How owner information must be disclosed to tenant or gov agency:	nant in writing within 7 days after the landlord receives a request, by continuously posting the information in a conspicuous place in the dwelling or the office by including the information in a copy of the tenant's lease or in written rules
What if LL fails to disclose owner information?	landlord will be liable
tenant of a landlord who is liable under Section 92.202, 92.203, or 92.204 can use what remedies?	court order demanding disclosure, judgment against the landlord for an amount equal to the tenant's actual costs of finding disclosure info, one month's rent plus $100, court costs & attorney's fees, Unilateral termination of lease w/o a court proceeding
Gov official asking landlord who is liable under Section 92.202, 92.203, or 92.204 can use what remedies?	court order demanding disclosure, judgment against the landlord for an amount equal to the tenant's actual costs of finding disclosure info, judgement of $500, court costs & attorney fees
An applicant is deemed rejected if the landlord has not given the applicant notice of acceptance within ___ days after the date the landlord accepts the application deposit.	7
A tenant may be entitled to all but which of the following remedies in the event of landlord retaliation? Criminal charges Civil penalties moving costs Attorney's fees	Criminal charges
What action creates a presumption that a tenant acted in bad faith in filing a complaint to the housing authorities?	building inspector finds no violation
A landlord who fails to refund an application fee is liable for 3x the amount of the application deposit plus $____	$100
required disclosures under Chapter 92	the name of the owner of the property being rented the address of the owner of the property being rented the name of the management company if the office is off-site from the rental unit
In the Sims v. Century Kiest case, what action did Sims take that resulted in the landlord's terminating his lease?	He formed a tenant's council
why should a broker display the Equal Housing Opportunity Poster in the office?	To comply with Federal Housing Laws
Which of the following terms refers to directing a buyer away from a certain area because of race, color or national origin? blockbusting steering redlining bootlegging redlining bootlegging	steering
Buildings with an elevator and four or more units constructed after _______ must be ADA compliant. bootlegging	1991
Who enforces the Equal Credit Opportunity Act?	Federal Trade commision
Buildings with an elevator and four or more units constructed after _______ must be ADA compliant.	1995
Antitrust laws	state and federal laws designed to maintain and preserve business competition. These laws are based on the belief that free enterprise and healthy competition are good for individual consumers as well as the economy.
when does a violation of an antitrust law occur?	1. a monopoly, a contract, a conspiracy or a combination of such. 2. existence of the monopoly or conspiracy creates a restraint of trade 3. restraint of trade unreasonably restricts competition and functions against the public interest.
Sherman Antitrust Act of 1890	the principal federal statute that covers competition and is one of the most important pieces of antitrust legislation.
Antitrust laws prohibit	Price fixing, group boycotts, Market Allocation, Tie-in Arrangements
price fixing	Collusion between or among members of a particular trade to maintain prices at a set level.
group boycotts	Agreements between or among members of a particular trade that would prevent other members from fair participation in the trade’s activities.
Market allocation	Agreements between or among members of a trade to avoid doing business in specific market areas.
Tie-in arrangements	Arrangements that requires a buyer to purchase additional or unrelated products or services when making a product purchase.
major problem existed with creation of the Sherman Act	terms "restraint of trade", "combination" and "monopolize" were not properly defined, turning the act into a vague and weak legislation. and, no independent commission established at the time to investigate possible antitrust cases,
penalties for antitrust violations	Individual violators of the Sherman Act can be fined up to $350,000 and sentenced to up to 3 years in federal prison for each offense; corporations can be fined up to $10 million for each offense.
Criminal Antitrust Penalty Enhancement and Reform Act,	2004 , signed by GW Bush, increasing the maximum criminal penalty for individuals to 10 years' imprisonment and a $1 million fine, and the maximum penalty for corporations to a $100 million fine.
Clayton Antitrust Act	1914 made both substantive and procedural modifications to federal antitrust law. The Clayton Act was designed to cover restraints on interstate trade or commerce that are not covered under the Sherman Act.
Under the Clayton Act, private individuals are permitted to	sue antitrust violators. If the suits are successful, the individuals can recover three times the damages incurred plus court costs and attorneys’ fees.
Federal Trade Commission Act	prohibits unfair methods of competition in interstate commerce, but carries no criminal penalties, also created the Federal Trade Commission (FTC) to police violations of the Act
t or f FTC cannot enforce compliance with the Sherman Act and some sections of the Clayton Act.	false-it can
Market Allocation	occurs when competing firms agree to split up an area and refrain from doing business in each other’s territory. could also be about Price ranges Types of properties Sociological divisions of business Refusal to deal with a competitor
tie-in arrangement – or tying agreement	an arrangement that requires the buyer to agree to something in exchange for the sale.
Civil Rights Act of 1866:	prohibits racial discrimination in all real estate sales. "All citizens have the same rights to inherit, buy, sell, or lease all real and personal property."
Civil Rights Act of 1964:	forbids discrimination in federally subsidized housing, end segregation, Created an Equal Employment Commission, federal funding would not be given to segregated schools, any business that wanted federal business had to have a pro-civil rights charter.
Federal Fair Housing Act of 1968:	prohibits discrimination in housing based on race, color, religion or national origin when selling, buying or leasing residential real estate.
Jones v. Mayer 1968:	Supreme Court Case that prohibits racial discrimination in any real estate transaction (residential or commercial).
Housing and Community Development Act of 1974:	added gender (sex) to the protected classes.
Federal Fair Housing Amendments Act of 1988:	added mental or physical handicap and familial status (people with children under 18) to protected classes. The seven protected classes became race, color, religion, national origin, sex, handicap and familial status.
Civil Rights Act of 1866:	Passed in the year after the Civil War, this law said that: All citizens shall have the same rights to inherit, buy, sell, or lease all real and personal property.
civil rights act of 1968 4 exceptions to the law	1. no more than three single-family dwellings at any one time is exempt. can use exemptions once in 24 mo. 2. 4 units is exempt if the owner occupies one of units. 3. Religious org exempt with properties for members only 4. A private club
when are civil rights act of 1968 exemptions are NOT available?	Discriminatory advertising has been used The services of a real estate broker were used (either in renting, leasing or selling).
Discriminatory Advertising	advertising in any media with the purpose of discriminating for or against a certain group of the protected classes. The advertisement implies acceptance (or denial) of certain groups.
Blockbusting (or Panic Peddling)	inducing panic selling in a neighborhood for gain by a broker or sales associate. "You'd better sell now, because they are moving in" is a clear violation of the law.
Steering	directing a buyer to or away from a certain area because of race, color or national origin.
Redlining	practice by some lenders to refuse to lend in certain areas because of race, color, national origin or religion, regardless of the ability of an individual person to pay.
Familial Status	defined as anyone who has a child under 18, who has temporary custody of a child under 18, is seeking custody of a child under 18 or is pregnant. This means a child (or children) under the age of 18.
1988 Seven Protected Classes:	Race Religion Color National Origin Sex Handicap Familial Status
What are not are not protected classes under Federal Fair Housing.?	Age, marital status, or sexual preferences, occupation, those using gov assistance
does a wide door opening required for wheelchair access need to be restored back to original state when handicapped person moves?	no, would NOT need to be made narrow because a future tenant could use a wide door opening without inconvenience.
when is Housing for older adults is exempt from the familial status protection section of the Federal Fair Housing Act of 1988?	building is occupied only by those 62 years or older, building is designed to be occupied by older persons, occupied by at least one person 55 years of age or older per unit (where 80 percent of the units are occupied by individuals 55 or older).
Equal Housing Opportunity Poster-must be posted and include these words and include what else?	1. "We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation." 2. equal housing logo
prima facie evidence of discrimination	Failure to display the Equal Opportunity logo and Poster
Who do you make a discrimination housing complaint to?	Department of Housing and Urban Development (HUD)
What does HUD do with discrimination housing complaints?	Refer it to a Federal District Court Appoint an administrative law judge to hear the case.
Penalties for discrimination	First offense charges for discrimination can be $10,000; Second offense is $25,000 if the second violation occurs within 5 years; and $50,000 if two or more violations occur in 7 years.
aggrieved party of discrimination in housing remedies:	1. file complaint with HUD 2. file a civil suit in Federal District Court within two years of the act (unless already filed with HUD, then 1 yr)
Complaints brought under the Civil Rights Act of 1866 must be filed where?	taken directly to Federal Court.
There are four exceptions to the fair housing laws:	1. Housing developments for elderly 2. Resident owners of four units or less. 3. Churches 4. Private clubs
To qualify for exempt status to fair housing laws, two conditions must be met:	1. Services of real estate licensees were not used 2. Discriminatory advertising was not used.
Handicap status	includes both physical and mental handicaps. If the handicap is not readily observable, it is the obligation of the handicapped person to furnish proof of his handicap.
Enforcement of the federal fair housing laws is primarily the function of what entity?	HUD
what are procedures for filing a discrimination complaint?	1. file in 1 yr to HUD 2. HUD gives decision w/in 100 days 3. HUD can mediate during 100 days 4. If state has similar laws to fed laws HUD must refer to state 5. if parties do not want to be heard federally, then HUD judge will hear
What can HUD judge award for discrimination damages?	can award actual damages, grant an injunction or equitable relief, or grant civil penalties up to $50,000.
What if you do not agree with Admin Law Judge from Hud?	can appeal to U.S. district court within 30 days
court may award what in a discrimination case?	injunction, actual damages and punitive damages with no limit.
Americans with Disabilities Act (the "ADA")	Passed in 1990, requires access to public transportation, public accommodation and commercial facilities. A disabled person must be given the same access as an able-bodied person.
buildings ready for occupancy after March 13, 1991 with an elevator and four or more units must what according to ADA?	Public and common areas must be accessible to persons with disabilities. Doors and hallways must be wide enough to accommodate wheelchairs.
What if a building with four more units has no elevators and will be ready for occupancy after March 13, 1991,	these standards apply only to ground floor units.
Architectural barriers	include anything that would make it difficult for a person in a wheelchair to navigate. Examples of modifications would include installing wheelchair ramps, elevators, bathroom rails, etc.
readily achievable	meaning that it will not create an "undue burden" on the building owner to comply.
readily achievable factors	cost to accomplish compliance and the financial resources of the owner.
ADA comes into play for brokers who have more how many employees?	15
t or f larger businesses with more resources are expected to take a more active role in removing ADA barriers than small businesses.	true
property alterations	they affect the usability of the space; for example, installing a new display counter, replacing fixtures or flooring, or replacing an entry door. However, simple maintenance, such as repainting a wall, is not considered an alteration by the ADA.
t or f model homes that double as a sales office must be ADA compliant?	true
Blockbusting, panic peddling or panic selling	Making a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood and that this will have detrimental results, such as the lowering of the property values.
Equal Credit Opportunity Act	which is enforced by the Federal Trade Commission, prohibits creditors from discriminating on the basis of race, color, religion, national origin, sex, marital status, age or those on public assistance (collectively, the "protected classes".)
Fair Credit Reporting Act (FCRA)	designed to promote the accuracy, fairness and privacy of information in the files of consumer reporting agencies. These agencies include the credit bureaus as well as other agencies that sell information about consumers, such as rental histories.
if a property manager that violates the FCRA and does not disclose that application was denied due to credit report and the name of the agency what can happen?	property manager may be sued for the violation
Megan’s Law	federal law requiring a public registry of known sex offenders, was enacted in 1996.
Your buyer has how many days to conduct a property risk assessment for the presence of lead-based paint or hazards?	10
How long must seller and LL keep LBP disclosures?	3 years
Effective December 2008, renovators, remodelers, contractors and landlords of pre-1978 housing are required to provide what?	owners, tenants, and child care facilities with the EPA's "Renovate Right" pamphlet.
EPA	Environmental protection agency
Chapter 93 of the Property Code	only applies to commercial rental property.
Uniform Residential Landlord and Tenant Act (URLTA)	rafted in 1972. This code was approved by the American Bar Association in 1974 and is approved in all 50 states. States adopted laws based on this model.
URLTA goals	was intended to make residential landlord and tenant laws fair to all parties and more relevant to rentals in a modern urban setting. Landlord and tenant law before that time was often based on the common law, or law established by court decisions.
What issues are not covered by URLTA?	rent increases or rent control and the handling of security deposits.
Purpose of URLTA?	simplify, clarify, modernize, and revise the law governing the rental of dwelling units and the rights and obligations of landlords and tenants, encourage landlords and tenants to maintain and improve the quality of housing, make the law uniform
General provisions of the Uniform Residential Landlord and Tenant Act include:	Confession of judgment, attorney fees, Hold harmless, Knowingly including prohibited provisions, security deposit limit, accounting for depos, Name of manager, possession, Unconscionable leases, Failure of lessor to sign
Confession of judgment	A lease provision where a tenant confesses judgment, if in default, is prohibited. A confession of judgment gives up the right to defend actions in court.
Knowingly including prohibited provisions	If a landlord knows a provision is prohibited, but knowingly includes it in a lease, the tenant is entitled to actual damages plus up to three months' rent and attorney's fees.
Security deposits limit	While there is no limit as to prepaid rent, residential security deposits are limited to one month's rent.
Accounting for deposits	The landlord must account for funds within 21 days of termination of tenancy. Failure to return a deposit can result in return of the deposit plus twice the amount wrongfully held, as
Unconscionable leases	Leases that are considered unconscionable will not be enforced. A lease where a tenant waives his or her legal rights would be considered unconscionable
Failure of lessor to sign	If rental agreement is signed by tenant & delivered to LL who fails to sign, but accepts rent, lease has same effect as if it were signed and delivered. If the term of the lease is longer than one year, the unsigned lease would only be valid for one year.
lessor's duties under the Uniform Residential Landlord and Tenant Act include:	Codes, repairs, common areas, Maintenance, garbage receptacles, Water and heat, working toilet, Kitchen sink, natural lighting, emergency exits, Smoke detectors, Agreements, and quiet enjoyment
What codes does the LL need to comply with?	The landlord must comply with applicable health and safety codes.
What Maintenance is required of LL?	he landlord must maintain electrical, plumbing, sanitary, heating, ventilating, air conditioning, and other facilities (including elevators) in good and safe working order.
What are the standards for working toilet, washbasin and bathtub, or shower?	The toilet, bathtub, or shower must be in a ventilated room that provides privacy.
Natural lighting	There must be natural lighting in every room (window or skylight). If the windows do not open, there must be ventilation.
Smoke detectors	There must be smoke detectors in common stairwells and within the dwelling unit when there is more than one unit.
Violation of a lessor's covenant of quiet enjoyment incl:	Wrongful entry, barring tenant access, Numerous and/or needless repairs, leasing to 3rd party giving possession to another
Tenant's Duties	comply with bldg and housing codes, keep area clean, discard trash, do not cause damage, do not disturb others
Who regulates Real Estate advertising?	Texas Real Estate Licensing Act (TRELA).
Regulation Z	Truth In Lending Act, requires disclosure of all costs associated with closing a sale and/or mortgage. Additionally, it makes bait-and-switch advertising a federal offense
example of bait and switch	advertising property that an agent does not intend to sell, or that is not available, in order to attract buyers for other properties.
Property Code Chapter 91	Provisions generally applicable to landlords and tenants
Property Code Chapter 92	This chapter applies only to the relationship between landlords and tenants of residential rental property
Property Code Chapter 93	applies only to the relationship between landlords and tenants of commercial rental property
Uniform Electronic Transmissions Act(UETA)/SPAM	law that made digital signing possible and which states had the option to adopt. Today, 47 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands have adopted UETA
The three states that did not adopt UETA	Illinois, New York, and Washington) have designed and enacted similar legislation for themselves.
UETA states that:	states must accept elec sig, all parties must get disclosure, all parties must consent, records may be kept electronically if correct, can make copies, authorized ppl can see them.
Trust Accounts	When a property manager receives, money related to real estate he is managing, the funds must be deposited and maintained in a separate federally insured account so that the funds are not commingled with any other monies.
Funds that are typically deposited into a trust account include	rent and security deposits
purpose of establishing and maintaining trust account	avoid comingling funds
Withdraws from the trust account can only be made by:	broker or property manager whose name is listed on the account
Parties entitled to the money in a trust account should be paid no later than	the 30th day after the date a request is made.
n a situation where you cannot reasonably determine to which party or parties the trust money should be paid, you may pay the trust money to:	the registry of a court.
Keep the following reports up to date for a trust acct:	Trust Account Balance Report Trial Balance Delinquency Report Aged Receivable Detail Security Deposit Report General Ledger Bank Reconciliation
Texas law requires property managers to retain records for how long with a trust?	4 years
In an audit, Property mgrs will need to show records of:	Date funds were received Name of payee Amount received Date of deposit Amount paid out Check number and date Daily running balance of the trust account
SCRA Criminal Penalties	Act imposes criminal sanctions on anyone who takes part in eviction of military personnel or their families: if military person has orders to report; he or she or their spouses or dependents are using premises as dwelling place; and if rent is <$1200
Why should a broker display the Equal Housing Opportunity Poster in the office?	To comply with Federal Housing Laws
Texas Property Code started when and why?	1963, cover a large range of real estate matters, including buying and selling, how and when property can be divided, and information to help settle disputes over ownership.
how many titles are in TX property code?	15
chap 91 five sections that include:	notice for Terminating, Termination of Lease Because of Public Indecency Conviction, LL breach, subletting prohibited, Landlord's Duty to Mitigate Damages
In mo to mo tenancy, if termination is given when is the final dahy?	termination occurs on whichever is later, the day given, or the day following the expiration of the period beginning on the day on which notice is given and extending for a number of days equal to the number of days in the rent-paying period.
if Termination of Lease Because of Public Indecency Conviction how is this carried out?	written notice of termination to the tenant or occupant within six months after the right to terminate arises. The landlord may retake possession on the 10th day after the date on which the notice is given.
what happens if tenant in TX breaks lease early and causes damages?	landlord has a duty to mitigate damages, Texas is only one of a few states that have a statute placing on the landlord the responsibility to mitigate the landlord's damages if the tenant terminates the lease early.
Mitigation	the duty of one party to take reasonable measures to minimize the other party's losses if the other party breaches a contract. In a lease context, it would apply if a tenant breaches a lease and vacates the premises early. must seek new tenant
statute	a law dictated by the legislature; the common law is law derived from court decisions; BOTH residential and commercial; only to leases entered into after September 1, 1997
LL mitigating	LL helps prevent the destruction of leased property due to vagrancy or other acts common to vacant buildings. Allowing a LL to leave a property vacant is unfair to an absent tenant, particularly since the LL has the ability to find another tenant.
Prior to the statute and the Austin Hill Country case, landlords had four options when a tenant defaulted and left the premises:	Treat the lease as if it were still in effect, Accelerate the rent, Terminate the lease and let the tenant off the hook.
Liquidated damages	set amount of damages established by the contracting parties at the time the contract is entered.
Chapter 92 sub-chapters (9)	1. General provisions 2. Repair of Closing of Leasehold 3. security devices 4. Disclosure of Ownership and Management 5. Smoke Alarms and Fire Extinguishers 6. utility cut off 7. retaliation 8. Rental Application Deposits 9. security deposits
consequences for a bad suit case?	liable to the defendant for one month's rent plus $100, and for attorney's fees.
Does a LL need to give tenant a copy of the lease?	yes, shall provide a copy of a signed lease, not later than the third business day after the date the lease is signed by each party. At least one complete copy of the lease shall be provided to at least one tenant who is a party to the lease.
In an insured casualty loss when must LL begin repair?	the period for repair does not begin until the landlord receives the insurance proceeds
Door viewer	device must be a clear glass pane, one-way mirror or a peephole having a barrel with a one-way lens of glass or other substance providing an angle view of not less than 160 degrees.
Keyed dead bolt throw length?	at least a one-inch throw
Tenant turnover date	date a tenant moves into a dwelling under a lease after all previous occupants have moved out.
how long does a LL have to re-key a security device?	not later than the seventh day after each tenant turnover date.
WHEN MUST A TENANT'S REQUEST FOR REPAIR BE IN WRITING?	When noted in the lease, otherwise it can be verbal.
tenant's request for rekeying is said to be done in a reasonable time. What is considered reasonable?	no more than 7 days after request
When does a landlord have a defense to liability for making repairs if LL has not made the requested repairs?	if the tenant has unpaid rent or additional monies owed to the landlord.
smoke alarm must be:	detect both the visible and invisible products of combustion, have alarm audible to a person, tested by by Underwriters Laboratories, Inc., Factory Mutual Research Corporation, or US Testing Company, Inc, comply with residential building code standards
Where must smoke alarms be placed?	in each separate bedroom, If multiple bedrooms are served by the same corridor, at least one smoke alarm must be installed in the corridor in the immediate vicinity of the bedrooms,
What does utility disconnect notification need to say?	include the following text in both English & Spanish: "Notice to residents of (name and address of non-submetered master metered multifamily property): utilities to this property is scheduled for disconnection on (date) because (reason for disconnection).
new key is required to be provided to a commercial tenant when and how?	LL must place a written notice on tenant's front door stating name and the address or phone # of the indiv or co. to get new key. only required to be provided during the tenant's regular business hours and only if the tenant pays the delinquent rent.
LL must refund the commercial security deposit to the tenant within _____days from the date the tenant surrenders the premises and provides notice of a forwarding address?	60
When is a landlord not required to give the commercial tenant a description and itemized list of deductions when returning the security deposit?	if the tenant admits to owing rent.
When is a new owner of a commercial property not liable to return security deposit to tenants?	does not apply to a real estate mortgage lienholder who acquires title by foreclosure.
LL who retains a commercial security deposit in bad faith is liable for?	$100, three times the portion of the deposit wrongfully withheld, and the tenant's legal fees incurred to recover the deposit.
Forcible Detainer	A person who refuses to surrender possession of real property on demand commits a forcible detainer if: holding over after the termination, occupant at the time of foreclosure, is a tenant of person who acquired by forced entry
Detainer	action is filed if the person in possession of the property loses the legal right to remain in the property and refuses to leave
example of detainer	If that tenant refuses to leave after the bank takes the house back in a foreclosure, the bank would have a detainer action against the tenant.
suit for eviction	suit would include forcible entry and detainer, and forcible detainer suits. The party would file the action in a justice court in the precinct in which the real property is located.
How long before a LL files suit for eviction does the LL need to give notice?	three days written notice prior to filing the suit, in person or by mail at the premises in question
possession bond	Writ of Possession cannot be issued less than six days after the judgment is entered in favor of the landlord, unless a possession bond has been filed and approved if there is a risk of harm to premisis
How is a writ of possession executed?	officer posts a written warning of at least 8 ½ x 11 inches on the exterior door date and time of execution, must be > 24 from posting. Office will give LL possession, tell tenant to leave and take all property, use force if they will not leave
How does LL recover attorney fees?	LL gives letter to vacate, must state that if not vacated by 11th day, a suit will be filed. Must be sent registered, certified, return receipt.
three types of landlord's liens:	Agricultural, Building or commercial, Residential
Exempt From residential LL Lien:	clothes, Tools, apparatus, and books of a trade, schoolbooks, family library or portraits, medicine, furniture, 1 car, toys,
When can you sell seized property?	must be in lease, give tenant 30 days notice of sale with date, time and place, itemized account of amount owed by tenant, name and # of who to call about prop redemetion
replevy	At any time before judgment in a suit for unpaid rent, the tenant may replevy any of the property that has been seized, if the property has not been claimed or sold, by posting a bond in an amount approved by the court
Under what circumstances may a landlord remove the contents of the premises from exempt property?	When the tenant has abandoned the property
How long does the landlord have after the sale to mail the tenant the excess proceeds of the sale?	30 days
Which of the following items are exempt from a landlord's lien? the family television WII game a motorcycle the beds	beds
What is not required if a landlord plans to sell the seized non-exempt property of a tenant?	An order from the court
Randy Renter moves out in the middle of the night, leaving the landlord without a tenant. Randy leaves the landlord the rent due through the day of vacating. What duty does the landlord owe Randy?	The landlord must mitigate damages by trying to relet the premises
Randy Renter took possession of a rental unit from Joe Jones, who was a holdover tenant under a lease. The landlord has a cause of action against Joe for __________	unlawful detainer
If a tenant recovers property a landlord has seized, it is called _________.	replevy
LLL duty to repair	tenant must specify the condition, tenant cannot be delinquent, condition must materially affect the physical health or safety of an ordinary tenant
burden of proof shifts to the landlord when	if the landlord does not provide a written explanation for delay in performance within 5 days after receiving a written demand for an explanation from the tenant.
If tenant gives the landlord written notice demanding an explanation as to why the landlord failed to repair, how long does LL have to explain	5 days or the burden of proof would then shift from the tenant to the LL.
If there is a casualty loss due to damage by fire, flood, etc. not caused by tenant, what are the tenant and LL possible remedies?	1. termination of the lease. If tenant moves out in middle of pay period he will be refunded rent on an pro rate rate. 2. rent reduction for parts that are destroyed
partial casualty loss	reduction in rent if there is damage to rented property. not automatic, could be in the lease or you may have to appeal to court for a judgement
notice to close rental unit	can give tenant notice unit is closing. Cannot re-rent for 6 months after this notice.
what is the penalty if LL violates notice to close rental unit policy	landlord who violates this provision of the Code is liable to the tenant for an amount equal to one month's rent plus $100 and attorney's fees.
What happens if tenant gives notice to repair to LL?	It changes the LL ability to give notice to close the rental unit. LL if closing would need to pay moving expenses, refund portion of rent, and civil penalties of 1 mo rent + $500, damages, court and attorney fees
what is the rebuttable presumption period for a notice of repair to a LL?	7 days
In order for a tenant to terminate lease b/c of lack of repairs and recoup some of the rent and security deposit what must already be true?	THE LEASE MUST CONTAIN LANGUAGE UNDERLINED IN BOLD PRINT THAT INFORMS THE TENANT OF THE REMEDIES AVAILABLE UNDER THIS SECTION.
If tenant repairs and deducts repair from rent, is the a cap on amount?	yes, may not exceed the amount of one month's rent under the lease or $500, whichever is greater.
If a tenant has a reduced rent b/c of government subsidy, what rate of rent is used to determine a court remedy?	a reasonable amount of rent under the circumstances
If a tenant makes repairs, who can he have make the repairs?	company, contractor, or repairman listed in the yellow or business pages of the telephone directory or in the classified advertising section of a newspaper
Affidavits may delay repair by the tenant how and how long?	LL delivers to tenant affidavit, 15 days if the landlord's failure to repair is caused by a delay in obtaining necessary parts , or 30 days if LL failure to repair is caused general shortage of labor or materials for repair following a natural disaster.
If LL issues multiple affidavits, what is the max time he can delay repairs?	6 months
how must a LL deliver affidavit to delay repairs?	personal delivery, Certified mail, return receipt requested, Leaving the notice inside the dwelling in a conspicuous place, but only if this manner of notice is provided for in the lease.
suit to enforce this section of the Code may be brought to what court?	justice, county or district court
If a suit is filed in justice court, what are the time parameters?	will conduct a hearing on the request not earlier than the sixth day after the date of service of citation and not later than the 10th day after that date.
how much can a justice court award in a repair unit under a property code?	A justice court may not award a judgment, including order of repair, which exceeds $10,000 excluding interest and court costs.
In what form should the tenant give a notice to the landlord about a problem in the rental unit that needs to be repaired?	It does not have to be in writing
When determining whether the landlord repaired a condition within a reasonable time, all of the following will be a factor considered by the courts except?	The current rental rate the tenant is paying
If the tenant elects to make a repair that the landlord fails to make, who can make the repair?	A licensed contractor
How much time has the landlord to provide a written explanation for delay in performance until the burden of proof shifts to him/her?	5 days
The landlord has a duty to repair or remedy a condition caused by:	Normal wear and tear
What language must be included in the lease in boldface type and all capitals with regard to the landlord's duty to repair?	The judicial remedies available to the tenant in the event the landlord fails to repair
If the landlord delays making a repair after delivering the first affidavit for delay to the tenant, what are the legal consequences?	The landlord will have the burden of proving good faith for subsequent delays
After a complete casualty loss of the premises, if a tenant wants to terminate the lease, may he do so?	Yes, but he must do so before the repairs are complete
Purpose of building assessment	to provide the owner with a tool to make better-informed decisions about the asset.
What should a building assessment include?	not only include a study of the physical condition of the building, it should also include a reserve assessment that projects the repairs and replacements required for major building components over the coming 20-30 years.
key to building longevity	Proper preventive maintenance
components of an building assessment report	evaluation of the condition , recommendations for maintenance, should be a spreadsheet allocating future capital expenditures over time
reserve	an account where money is held to pay for unexpected expenses.
reserve study	component of the building assessment lists all the major components of the building that will require maintenance or replacement over the next 20-30 years. It becomes the blueprint for budgeting for the building.
how often should air filters be changed?	every 3-6 months, do not leave this to the tenant
preventative maintenance items for buildings:	caulking of windows, Trim trees and shrubs, Clean gutters, Repair loose shingles or flashing, Repaint, Re-grout tile, Repair all locks, a/c serviced, Lubricate hinges, Check for mold, Check sinks, faucets, washer hook-ups for leaks
deferred maintenance	is maintenance that was not performed when it should have been or was scheduled to be and which, therefore, is put off or delayed for a future period. the result of owners' trying to balance maintenance with cost savings.
Electrical systems should be inspected by a licensed electrician every	3-5 years
Parking-garage surfaces should be cleaned at least twice a year, with coating replacement every	10 years
Pavements should be crack-filled and seal-coated on a regular basis. Mill and overlay pavements should be done every	20 years
A roof generally needs to be replaced how often?	every 12-15 years, Properties in hot climates will have to be replaced more frequently due to sun damage.
types of roofing materials	shingles, built-up tar, rubber, foam, gravel, and tile.
Warranties on the shingles last how long?	15 years to 30 years, but shingles rarely last as long as their warranties
What type of roofs are used for flat roofs like office and shopping centers?	Built-ups & rubber and foam
Why are tile roofs so expensive?	They typically last longer and engineering is required to install them due to their weight.
Carpet pads should be at least how thick?	9/16 inch
Terrazzo	tile that is a mixture of marble chips and cement and can be made in a variety of colors
why is it important to replace air filters?	dirt inhibits the flow resulting in the unit's having to work harder. This increases cooling and heating costs.
what is the write-off difference between repairs and upgrades?	epairs can be written off 100% as an operating expense while capital improvements are written off through a depreciation schedule.
ROI	gain/cost-ROI EX: 50k cost nets 15K gain = 15/50= 30% Return on Investment
Deferred maintenance would include all except which of the following?	Adding an air handler to the HVAC system
With regards to minimum requirements, how thick should a carpet pad be?	At least 9/16” inch in thickness
Which of the following would not be a component of a building assessment? Profit and loss statement Preventive maintenance program Deferred maintenance program Capital forecast	Profit and loss statement
Which of the following services should be performed by a contractor? Cleaning Landscaping	both
A reserve study projects replacement of building components over the next ___.	20 YRS
How often should the electrical systems be inspected by a licensed electrician?	Every 3 to 5 years
EPA	Environmental Protection Agency (EPA) has established the Energy Star® program that provides guidelines for good energy management. The guidelines can be used to lower operating costs and reduce pollution and emissions.
EPA reports that utility costs represent in multifamily and commercial properties?	multifamily residential -23-30% of controllable costs Commercial-30 percent of an office building's operating costs
Leadership in Energy & Environmental Design (LEED) certification	Leadership in Energy & Environmental Design (LEED) certification.
The components measured in the LEED certification"	Materials used in construction Location Indoor air quality Water usage Emissions Energy efficiency
Does a "green" rating does not the building energy efficient?	No. It may have achieved its green rating for some other green features.
According to EPA, what % does lighting use of commercial building of overall electricity in the United States	71%
Efficient lighting begins with	Using as much natural light as possible.
what types of lighting sources do you have to choose from?	fluorescent, high-intensity discharge (HID), and newer sources such as induction lamps and light-emitting diodes (LEDs).
How can automatic light controls help?	educe energy costs and increase efficiency
HVAC	Heating, Ventilation & Air Conditioning
Where would you find tips on energy conservation?	EPA
CFL's	compact fluorescents, reduce future costs of purchasing new lamps - and the labor costs associated with changing light bulbs - because they last 10 times longer.
Optimal swimming pool temperature	78 degrees
optimal hot tub temp	96 in summer and no more that 102 in winter - this is also safer for your health
window shades, tinting, films, or blinds can help how with saving on electricity	reduce heat gain in the summer (and heat loss in the winter)
What tips can help save energy with water heaters?	insulation blanket, when time to replace use electronic ignitions rather than pilot lights,
Furnace automatic damper controls	This will keep the flue open while the burners are on and close it when the burners go off. This traps furnace-generated heat within the building.
Why are gas fire places recommended?	Wood burning fireplaces emit carbon into the air, which is a pollutant. Gas fireplaces can actually contribute to the heating system in the winter. They are also much cleaner than wood burning fireplaces and safer to use.
Xeriscape	term to describe landscaping with plants that require little water, for example cactus and decorative rock.
How can you cool attic in the summer?	install a power vent with a thermostat that turns the vent on at a designated temperature
How do you know if the insulation you have is good?	They are measured in R Values, the higher the R Value the better the insulation.
AIA
most common professionally managed property in the U.S.	Residential property bought for investment
Property management might also be required for properties that are different from the normal. What are they?	Properties in probate or foreclosure
examples of capital expenses	parking lot resurfacing, Roof replacement, Common area replacements or upgrades
Office Building Management Start-Up Costs	Renting office space, Setting up an office with furniture and equipment, Hiring personnel, Purchasing accounting and/or property management software.
multi-tenant office property, the most advantageous fee schedule for a property manager is:	Minimum plus percentage of the gross revenues
lost leader	another term for an anchor store - used as baitto draw in other fish
"slippage” factor	smaller than the anchor tenants pay a higher pass through bills to make up for what the developer marked down for the anchor.
direct pass-through	costs that are past on to the tenants of a shopping center or commercial rental like taxes, insurance, utilities and CAM.
CAM	common area maintenance charges
Warehouse rents tend to be?	much lower b/c less intensive than almost any other property type.
How are leasing fees earned and paid	for residential it is typical to receive either an amount equal to the first months rent on a lease of twelve months or longer, or a percentage of the monthly rent on a month-to-month lease. thisis in addition to you mgmt fee.
“tenant rep” broker	Broker to help business owners to find leases
What is the managers fiduciary responsibility to the owner regarding finances?	It is the manager's fiduciary duty to the owner to keep expenses under control
What does the owner of a property want the most?	Good return on investment
t or f capital expenses are not passed on to the tenant	true
TAR 2101	Commercial Lease form
rentable area	In an office building there is a common area factor applied which includes the main lobby, corridors, elevator lobby and other areas that are commonly used by all tenants.
When a tenant leases office space, who's responsibility is it to get the certificate of occupancy?	Usually the Tenant's
Commercial Expense Reimbursement	depends on lease type but This may include real estate taxes, property insurance, common area utilities, and maintenance of the common areas of the property.
Commercial Percentage Rent	most commonly used in retail leases, this is a provision by which the Landlord participates in a percentage of the Tenant's sales revenue. There is a floor base and LL
Commercial rAddendum	used in multi-tenant ofc buildings where there is an attached or detached parking structure for which there is a charge for parking. The Tenant may be allowed a certain number of spaces at no charge and then must pay a set monthly amount, subject to adj.
Tenant is required to maintain certain types	public liability and personal property. The amount of the liability insurance is set by the Landlord and requires that the Landlord be named as additional insured.
When does a tenant need to prove he is insured in a commercial lease?	Prior to occupancy
Legal Compliance section of contract	The specific uses that are prohibited on a property are listing in the section called, "Legal Compliance."
Generally who takes care of what maintenance?	Landlord is responsible for the area that is exterior to the Premises, and the Tenant takes care of the interior.
INDEMNITY:	Each party will hold other party harmless from any property damage, personal injury, suits, actions, liabilities, damages, cost of repairs or service to the leased premises, or any other loss caused, negligently by that party, patrons, guests, or invitees
Preceding the various Addenda, are the exhibits. Some of the possible exhibits to incl with commercial leases:	Legal description of the property; Site plan (usually a shopping center;) Space plan or layout of the premises; Building Rules and Regulations; Signage criteria; Declaration of constructive easements
TAR Addendum 2102	the Commercial Lease Addendum for Brokerage Fee. As with other TAR promulgated forms, this form is available only to those brokers and agents who are active, dues-paying members of the Texas Association of Realtors.
When are commericial payments initially made?	typically 50% upon lease execution and 50% upon occupancy and/or rent commencement.
Tar 2103 addendum	Commercial Lease Expense Reimbursement Addendum. This addendum will always be attached to the Lease as it defines the amounts and ways of calculating additional rent for expenses.
What does the parking addendum cover?	Reserved employee parking Reserved visitor parking Restricted parking areas Loading areas Designated areas for employee parking Charges for reserved parking Short-term delivery vehicle parking
burn off	When the tenant has a guarantor and they make steady payments. The guarantor is allowed to be relieved of guaranteeing the loan/lease because tenant has proven to be responsible and trustworthy on their own.
The most common lease exhibits are:	Site plan Space plan Signage criteria and/or exhibit
Risk can be managed in four ways:	Avoidance Reduction Sharing Retention
Risk sharing	involves purchasing insurance or contracting with another party to share the risks. Sometimes this is referred to as "risk transfer"
Libel	false statement that is published somewhere, like in a magazine or on the internet.
Slander	a false statement that is uttered
2 distinct insurance industries in the United States:	property and casualty industry and the life and health industry
Insurance policies are written with two major components:	standard policy provisions and the individualized endorsements that modify the standard policy provisions.
endorsements usually modify what?	Who insured, What perils and events, kinds of losses, policy limits and deductibles, Where must the event occur
optional extensions to a standard property insurance policy - what are the 2 choices?	"named perils" and "all risk" insurance.
named perils	policy will cover losses resulting from a specific list of perils named in the policy. For example, named perils might be fire, lighting, wind, and hail.
all risk" insurance.	policy covers loss from all perils, except those that are excluded. Flood would be one peril that would likely be excluded.
t or f Most property insurance policies do not cover loss due to flooding or earthquakes.	true - additional ins. must be purchased for these perils
business interruption endorsements	insurance should always include a business interruption endorsement - compensates the insured for the income lost while repairs are made to the property.
three types of business interruption endorsements:	Business interruption insurance, Extended business interruption insurance, Contingent business interruption insurance
Extended business interruption insurance	compensates the insured for income lost after the property is restored but while the business gets back on its feet. This type of insurance has a limited time frame.
Contingent business interruption insurance	compensates the insured for loss of income resulting from damage to the property of customers or suppliers. EX. if the bakery shut down due to an explosion at the flour manufacturer.
Boiler ins	protects for losses associated with a boiler explosion.
Elevator insurance	available and specifically insures against losses associated with elevator failures.
most common types of casualty insurance coverage	commercial general and umbrella liability insurance policies, auto liability insurance, errors and omissions insurance, and workers' compensation insurance.
Comprehensive general insurance	cover claims by third parties who are not employees for injury and property damage caused by the insured's negligence, except for negligence related to the operation of automobiles
umbrella policy	The commercial general liability policy is the primary policy. Once its limits are reached, the umbrella policy kicks in to provide additional coverage to its limits.
comprehensive auto coverage	Comprehensive coverage includes damage to the vehicle from other causes, like fire, hail, theft or vandalism.
How many states in the US do not mandate their employers carry workman's comp insurance?	1, Texas is the only state that does not require employers to carry workman's comp
what is the benefit to the employer to carry workman's comp insurance?	The employer's liability for the work-related injury or death is limited.
What must a Texas employer disclose to new employee if they do not provide workman's comp insurance?	written notice of non-coverage to new employees upon hiring. Also, the employer must post a sign in the workplace.
If a non-covered employer of workman's comp has more than 4 employees they must report what to Dept of Worker's comp?	work related injuries, occupational illnesses, and all fatalities that occur at the workplace
Errors and Omissions Ins and professional liability ins difference:	professional liability ins covers mistakes made by professionals who are held to a higher standard of care than the avg person. Doctors, lawyers, CPAs and architects are good examples.
What doe professional liablity ins cover?	malpractice claims. It can be quite expensive.
Claim Payment	Most business that have huge repair must wait on insurance. Some Ins companies will give an advance for the work to begin.
What 3 things must occur before the insurer's obligation to pay arises?	1. insured must submit proof of loss 2. Insurer and insured must agree upon the amount of loss 3. 30, 60, or 90 days must elapse from date of proof and the amount is agreed upon.
Proof of Loss	Typically is a sworn statement stating the time and origin of the loss, the amount of the loss, and the name of anyone with an interest in the proceeds.
What causes Insurance claim payment delays?	These arise over the claim amount.
Builder's risk Insurance	Use this type of insurance when renovation is being done.
What kind of policy is builder's risk insurance?	It is a cash value policy. this is different from replacement value. If there is a loss, only the depreciated cost to repair the damage is covered.
What must employers in Texas do who do not provide workers' compensation ins?	disclose the fact, post a sign, give written notice to new employees, post sign in English and Spanish
What kind of policy compensates insured for lost income while repairs are made to property?	business interruption
an "all risk" ins policy covers all perils except	excluded perils
What part of the ins policy modifies the standard policy provisions?	endorsements
Risk can be managed by avoidance, reduction, sharing and __________?	retention
In risk management the property manager balances the desired result with the _____________?	cost of management
Comprehensive general ins policies do not cover damage related to _________________________.	operation of vehicles
A way to reduce insurance premiums would be to _________________?	Increase deductibles
ordinary security measures	lighting in entryways, eliminating landscaping at entryways, locks are working, doors work properly and lock
Good Samaritan Statute	A person who in good faith administers emergency care . . . is not liable in civil damages for an act performed during the emergency unless the act is willfully or wantonly negligent
How many feet do Fire Trucks need to maneuver quickly and safely?	15 feet
What must a prop manager do if there is pool with no life guard?	Post signs that no life guard is on duty and swim at your own risk.
OSHA	Occupational Safety and Health Act (OSHA) is a federal law that applies to safety and health in the workplace, including the workplaces of property management.
Who is required to keep proper records and file reports with OSHA	Any employer that hires seven or more employees
elements of premises liability:	1. knowledge on prop by owner 2. condition posed an unreasonable risk of harm 3. owner did not exercise care to reduce risk 4. owner's failure to use care proximately caused the plaintiff's injury.
When is it legal to use force or deadly force in Texas?	in the protection of property or in the event of trespassing, permissible if the person believes that the force or deadly force is necessary to prevent the commission of theft or criminal mischief.
People to keep firearms in their locked motor vehicle while in an employers’ parking lot except where?	school districts or charter schools, chemical manufacturers, and oil refineries.
§30.06 signage	states concealed weapons and open carry not permited
51% sign	by law to be posted if a business generates 51% from drinking of alcoholic beverages. Includes casinos, bars, nightclubs, taverns, & restaurants. This sign prohibits LTC & CHL holders from entering where drinking is taking place while carrying guns
30.05 sign	no long guns on premises
30.07 sign	no open carry on premises
If you want to forbid all guns on your property, what signs must you post?	30.06, 30.07 and 30.05, must be written in both English and Spanish
If no gun prohibitions sign is on the premises, can the owner use a verbal warning, "We do not allow guns in this establishment"?	Yes, verbal will suffice. Also, if there are posted signs, the owner may verbally allow a gun owner to enter and the verbal consent will override the signs.
Which method of paying rent is favored by landlords?	Automatic Draft
If a property is going to be vacant for a prolonged period, which of the following steps is most important to be taken?	board up the property
How does a property manager guard against terrorism?	monitor packages
Who is responsible for the smoke detectors in public gathering areas?	Landlord
What kind of lights should be used to provide the best lighting?	mercury or sodium vapor
"Reasonable" time to change a security device at the request of the tenant must be done in 7 days unless:?	there has been a crime in tenant's unit or in the multiunit building in the previous 2 months.
When must a smoke alarm be updated to alternating current?	unit is repaired, remodeled, or rebuilt at a projected cost of more than $2,500
who must test smoke detectors in order for them to be used in rentals or leases?	Underwriters Laboratories, Inc., Factory Mutual Research Corporation, or United States Testing Company, Inc.
Peter Property Manager installs a keyed deadbolt lock on one of the French doors in one of his units but puts nothing on the other door. Is Peter in compliance?	no, he must install another acceptable locking device on the other door
What is the requirement for smoke detectors?	It must be able to detect invisible products of combustion
What remedy is not available to a tenant in a lawsuit against the landlord for failing to repair a security device within the proper timeframes?	Criminal charges
In an efficiency apartment, where would the smoke detector have to be located?	Inside the main living area
Which of the following is excluded from the Property Code subchapter on Security Devices?	a hotel room

Created by: delorya

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