real estate final exam general side

every 20 questions is a different unit, and it starts with units 16-17, then 19-21 then ends with 14

which appraisal method uses a rate of investment return

a. sales comparison approach

b. cost approach

c. income approach

d. gross income multiplier method

c. income approach

The appraisal method that uses a rate of investment return is the "income approach." This approach is commonly used to determine the value of income-producing properties, such as rental apartments, commercial buildings, or investment properties. It involves analyzing the property's potential income stream and applying a capitalization rate or rate of return to estimate its value based on the income it generates. The income approach is particularly relevant when assessing the value of properties that generate rental income, and it is often used in conjunction with the sales comparison and cost approaches for a comprehensive appraisal.

the characteristics of value include which of the following

a. competition

b. scarcity

c. anticipation

d. balance

b. scarcity

The characteristics of value are remembered by the acronym DUST: demand, utility, scarcity and transferability

there are two vacant adjacent lots in an area zoned for commercial use, each worth approximately $50,000. if their owner sells them as a single lot, however, the combined parcel will be worth 120,000. what principle does this illustrate

a. substitution

b. plottage

c. regression

d. progression

b. plottage

The situation you described illustrates the principle of "plottage." Plottage is a real estate concept that refers to the increase in the total value of multiple adjacent or contiguous parcels of land when they are combined or assembled into a larger, more valuable parcel. In your example, the two vacant lots, when combined into a single larger parcel, become more valuable than the sum of their individual values, which is 120,000 versus 100,000 (50,000 + 50,000). This increase in value due to consolidation is a demonstration of the plottage principle.

the amount of money a property is likely to command in the marketplace is its

a. intrinsic value

b. market value

c. subjective value

d. book value

b. market value

The amount of money a property is likely to command in the marketplace is its "market value." Market value represents the current fair and reasonable price that a willing buyer and a willing seller would agree upon in an open and competitive market. It is an estimate of what a property is worth in the current real estate market conditions and is influenced by various factors, including location, condition, supply and demand, and comparable sales in the area. In contrast, "intrinsic value" is a theoretical concept related to the inherent worth of an asset, "subjective value" pertains to individual perceptions of value, and "book value" is an accounting concept that represents the historical cost of an asset.

a homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. the value of this house is MOST likely to be affected by what principle

a. progression

b. assemblage

c. change

d. regression

d. regression

Regression is a real estate appraisal principle that suggests that the value of a property tends to be pulled down or negatively affected when it is significantly different from the surrounding properties, particularly if those surrounding properties are of lower value. In this case, the homeowner's larger and more luxurious five-bedroom brick house in a neighborhood of smaller, less expensive frame houses is likely to experience a negative impact on its value due to regression. The value of the larger house may be "regressed" or brought down closer to the values of the smaller neighboring houses.

the owners of a modest ranch house in a neighborhood of larger, more expensive homes may find that the value of their home is affected by what principle

a. progression

b. increasing returns

c. competition

d. regression

a. progression

the value of of modest homes in an area may increase with the presence of luxurious homes. this is an example of the principle of progression

for tax purposes, accrued depreciation may be considered as a result of

a. functional obsolescence

b. physical deterioration

c. external obsolescence

d. accelerated depreciation

d. accelerated depreciation

functional obsolesce, physical deterioration, and external (economic) obsolescence are all sources of depreciation as a loss in value. accelerated depreciation refers to a deduction for income tax purposes

the term reconciliation refers to which of the following

a. loss of value due to any cause

b. separating the value of the land from the total value of the property to compute depreciation

c. analyzing the results obtained by the different approaches to value to form an opinion of value

d. the process by which an appraiser determines the highest and best use for a parcel of land

c. analyzing the results obtained by the different approaches to value to form an opinion of value

Reconciliation is the process of reviewing and analyzing the results obtained from various appraisal approaches (such as the sales comparison approach, income approach, and cost approach) to determine an appraiser's final opinion of value for a property. It involves weighing the strengths and weaknesses of each approach and arriving at a single, well-supported estimate of the property's value.

if a property’s annual net income is 24,000 and it is valued at 300,000, what is its capitalization rate

a. 8%

b. 10.5%

c. 12%

d. 15%

a. 8%

net annual income + market value = capitalization rate (24,000 + 300,000 = 0.08, or 8%). given any two elements, the third can be calculated

an appraiser applying the cost approach to value will consider which of the following

a. annual net operating income

b. capitalization rate

c. accrued depreciation

d. annual gross income

c. accrued depreciation

The cost approach involves estimating the value of a property by determining the cost to replace it with a similar property, minus any accrued depreciation. It does not typically involve the consideration of annual net operating income, capitalization rate, or annual gross income, which are more relevant to the income approach or sales comparison approach to property valuation.

an appraiser asked for an opinion of the value of an existing shopping center would probably give the MOST weight to which approach to value

a. cost approach

b. sales comparison

c. income approach

d. index method

c. income approach

The income approach to valuation is typically the most relevant and heavily weighted method for valuing income-producing properties like shopping centers. This approach estimates the value of the property based on its potential income, taking into account factors like rental income, expenses, and market capitalization rates. It is often considered the most accurate approach for valuing commercial properties such as shopping centers, where the income generated by the property is a primary indicator of its value.

the market value of a parcel of real estate is

a. an estimate of its future benefits

b. the amount of money paid for the property

c. an estimate of the most probable price it should bring

d. its value without improvements

c. an estimate of the most probable price it should bring

Market value represents the estimated price a property should bring in a competitive and open market, assuming both the buyer and seller are knowledgeable, informed, and not under any undue pressure to buy or sell. It is an estimate based on current market conditions and comparable sales, and it reflects what a willing buyer would pay and a willing seller would accept for the property.

capitalization is the process by which annual net operating income is used to

a. determine cost

b. estimate value

c. establish depreciation

d. determine potential tax value

b. estimate value

In real estate appraisal, capitalization is a method used to estimate the value of an income-producing property. It involves dividing the property's net operating income (NOI) by a capitalization rate to arrive at an estimate of the property's value. This process is commonly used for income-producing properties such as commercial real estate and rental properties.

from the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents

a. the remaining economic life of the building

b. remodeling costs to increase rentals

c. loss of value due to any reason

d. costs to modernize the building

c. loss of value due to any reason

Depreciation, in the context of real estate appraisal, refers to the reduction in the value of a building or property due to various factors such as physical wear and tear, functional obsolescence, and external factors. It represents the loss of value over time for any reason, not just due to a specific cause like remodeling costs or modernization.

which of the following is an important factor in comparing properties under the sales comparision appraoch to value

a. mortgage balance

b. potential market rent

c. difference in appearance and condition

d. differences in original cost

d. difference in original cost

none of the approaches to appraisal consider the original (historical) cost of a property. the other three factors would be relevant to the sales comparison - sometimes called the market data - approach. original cost, however, is used in computations of book value depreciation for tax purposes

which of the following is TRUE about a comparative market analysis

a. it is made by a professional appraiser

b. it is the same as an appraisal

c. it is based on a detailed market analysis of market conditions, property features, recent sales and listings, land value, and construction costs

d. none of these

d. none of these

a comparative market analysis is based on recently closed properties, those currently on the market, and expired listings. it is prepared by a real estate professional and is not as detailed as an appraisal performed by a licensed or certified appraiser

what is the key to an accurate appraisal

a. methodical collection and analysis of data

b. years of experience the appraiser has

c. appraising in a market with high supply

d. appraising in a market with high demand

a. methodical collection and analysis of data

Accurate appraisals require a careful and systematic gathering of relevant data, followed by a thorough analysis of that data using recognized appraisal methods and principles. This data-driven approach is essential in determining a property's true market value. While experience is valuable, it is the rigorous and accurate analysis of data that is the primary determinant of an appraisal's accuracy. The supply and demand conditions in the market can influence property values but are not the primary key to an accurate appraisal.

the appraised value of a residence with four bedrooms and one bathroom would probably be reduced because of

a. external obsolescence

b. functional obsolescence

c. curable physical deterioration

d. incurable physical deterioration

b. functional obsolescence

Functional obsolescence occurs when a property has a design or functional feature that is no longer in line with current market preferences or needs. In this case, a residence with four bedrooms but only one bathroom may be considered functionally obsolete because it does not meet the typical expectations of a four-bedroom home. This could lead to a reduction in its appraised value.

which principle of value indicates that a developer’s very profitable real estate project will attract others to engage in similar activity in the same area and thus drive down profits

a. anticipation

b. competition

c. value

d. progression

b. competition

Competition in the real estate market can lead to increased supply, which can in turn drive down profits and property values as more developers and investors enter the market, leading to an equilibrium in pricing and profitability. This principle highlights how market forces can impact the value of real estate.

change, contribution, plottage, and substitution are some of the basic principles that affect what aspect of real estate

a. demand

b. depreciation

c. value

d. supply

c. value

These principles are fundamental concepts in real estate appraisal and economics that directly impact the value of real estate properties. They are used to assess and determine the value of a property in various ways, considering factors like supply and demand, depreciation, and other market forces.

which transaction is BEST described as involving a ground lease

a. a landowner agrees to let a tenant drill for oil on a property for 75 years

b. the tenant agrees to pay a proportionate, increased rental based on annual appraisals of the rented property

c. a landlord charges a commercial tenant for the land use and the tenant erects its own building

d. the tenant pays a base amount for the property plus a percentage of business-generated income

c. a landlord charges a commercial tenant for the land use, and the tenant erects its own building.

In a ground lease, the landlord (the owner of the land) typically leases the land to a tenant for a specified period, and the tenant is responsible for constructing and maintaining any buildings or improvements on the leased land. This arrangement is commonly used in commercial real estate, where the tenant pays rent for the land itself and may be responsible for the construction and upkeep of structures on the land.

a tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenants gross receipts exceeding 5,000. this type of lease is called

a. a standard lease

b. a gross lease

c. a percentage lease

d. a net lease

c. a percentage lease

In a percentage lease, the landlord typically receives a base rent along with a percentage of the tenant's gross sales or gross receipts as part of the lease agreement. This is commonly used in commercial leases, especially for retail properties, where the landlord shares in the tenant's success by receiving a percentage of their revenue in addition to a base rent.

if a tenant moved out of a rented store building because access to the building was blocked as a result of the landlord’s negligence

a. the tenant would have no legal recourse against the landlord

b. the landlord may be liable for the rent until the expiration date of the lease

c. the landlord may have to provide substitute space

d. the tenant may be entitled to recover damages from landlord

d. the tenant may be entitled to recover damages from the landlord

If a tenant moved out of a rented store building because access to the building was blocked due to the landlord's negligence, the tenant may have legal grounds to recover damages from the landlord. In such a situation, the tenant could argue that the landlord's negligence resulted in a breach of the lease agreement or that the tenant was constructively evicted due to the lack of access. The specifics of tenant rights and landlord liability may vary based on local laws and the terms of the lease agreement, so it's advisable for the tenant to seek legal advice if this situation arises.

a tenant moves a pet into an apartment community that has a no-pets policy. the landlord wishes to remoce the tenant due to the breach. the legal process to remove a tenant is known as

a. constructive eviction

b. eminent domain

c. actual eviction

d. partical eviction

c. actual eviction

Actual eviction is the process by which a landlord legally removes a tenant from the rental property because of a violation of the lease terms or other grounds for eviction specified by law. It typically involves legal proceedings and a court order for the tenant to vacate the premises.

a tenant still has five months remaining on a one-year apartment lease. when the tenant moves to another city, the tenant transfers possession of the apartment to a friend for the entire remaining term of the lease. the friend pays rent directly to the tenant. in this situation, the tenant has become

a. an assignor

b. a sublessor

c. a sublessee

d. a lessor

b. a sublessor

The original tenant remains the primary leaseholder (the "lessor") with the landlord, but by allowing their friend to live in the apartment and paying rent to them, they have essentially become a "sublessor." The friend, who is living in the apartment, would be considered the "sublessee" in this arrangement.

a tenancy in which the tenant continues in possession after the lease has expired, without the landlord’s permission is

a. a tenancy for years

b. a periodic tenancy

c. a tenancy at will

d. an estate at sufferance

d. an estate at sufferance

an estate at sufferance is created when a tenant who lawfully occupied the property continues to stay on after the expiration date of the lease without the permission of the landlord. if the lease does not have a “hold-over” clause that governs the rights of both landlord and tenant, state law will govern

a tenant’s tenancy for years will expire in two weeks. the tenant plans to move to a larger apartment across town when the current tenancy expires. in order to determine this agreement, the tenant must

a. give the landlord immediate notice or the lease will automatically renew

b. give the landlord one week’s prior notice or the lease will automatically renew

c. do nothing because the agreement will terminate automatically at the end of the current term

d. sing a lease for the new apartment, which will automatically terminate the existing lease.

c. do nothing because the agreement will terminate automatically at the end of the current term

In most cases, a tenancy for years has a specific end date, and unless there is a provision in the lease requiring notice to terminate it, the lease will naturally expire at the end of the agreed-upon term without the need for additional notice. However, it's essential to review the specific terms and conditions of the lease agreement to ensure compliance with any notice requirements or renewal clauses that may be included.

when a tenant holds possession of a landlord’s property without a current lease agreement and without the landlord’s approval

a. the tenant is maintaining a gross lease

b. the landlord can file suit for possession

c. the tenant has no obligation to pay rent

d. the landlord may be subject to a constructive eviction

under the negotiated terms of a commercial lease, the landlord is required to maintain the water heater used in a health club. if the tenant is unable to get hot water because of a faulty water heater that the landlord has failed to repair after repeated notification, the tenant’s best recourse for staying in business would be to

a. stop paying rent

b. order a new water heater and deduct the payment from the rent

c. file a criminal complaint against the landlord

d. seek a refund of all lease payments

b. the landlord can file suit for possession

In such a situation, the tenant may be considered a holdover tenant or a tenant at sufferance. The landlord typically has the right to take legal action to regain possession of the property and may file a suit for possession or eviction against the tenant. The tenant's occupancy without a current lease and landlord approval is usually not in compliance with the terms of the lease or rental agreement. The specifics of landlord-tenant law may vary by jurisdiction, so it's essential to consult local laws and regulations in such cases.

a lessee has a one-year leasehold interest in a house. the lease automatically renews itself at the end of each year. the lessee’s interest is referred to as a tenancy

a. for years

b. from period to period

c. at will

d. at sufferance

b. from period to period

This type of lease arrangement, which automatically renews for successive periods (in this case, one year at a time), is commonly known as a periodic tenancy or a tenancy from period to period.

rent would BEST be described as

a. contractual consideration to a third party

b. consideration for the use of real property

c. all monies paid by the lessor to the lease

d. the total balance owned under the terms of a lease

b. consideration for the use of real property

Rent is the payment made by a tenant (lessee) to the landlord (lessor) in exchange for the right to use and occupy a property. It represents consideration for the use of real property and is a fundamental element of a lease agreement.

under the terms of a net lease, a commercial landlord would usually be responsible for paying which of the following expenses

a. mortgage debt service

b. maintenance expenses

c. fire and extended coverage insurance

d. real estate taxes

a. mortgage debt service

under a net lease, the tenant pays all property expenses, including taxes, insurance, utilities, maintenance, and so on, but not debt service (the landlord’s mortgage payment)

which of the following describes a net lease

a. an agreement in which the tenants pays a fixed rent and the landlord pays all taxes, insurance, and expenses related to the property

b. a lease in which the tenant pays rent, plus some - or most - of the operating expenses related to the property

c. a lease in which the tenant pays the landlord a percentage of the monthly income derived from the property

d. an agreement granting an individual a leasehold interest in fishing rights for a shoreline property

b. A lease in which the tenant pays rent, plus some - or most - of the operating expenses related to the property.

In a net lease, the tenant is typically responsible for paying not only the base rent but also some or most of the property's operating expenses, which can include items like real estate taxes, insurance, and maintenance costs. The specific terms of a net lease can vary and may specify which expenses the tenant is responsible for covering.

a tenancy in which the tenant continues in possession after the lease has expired, without the landlord’s permission, is

a. a tenancy for years

b. a periodic tenancy

c. a tenancy at will

d. a tenancy at sufferance

d. a tenancy at sufferance

A tenancy at sufferance, also known as a "holdover tenancy," occurs when a tenant remains in possession of the rental property without the landlord's consent after the lease has expired. It is typically not a recognized or authorized tenancy, and the tenant may be subject to eviction proceedings by the landlord.

a tenant’s right to possess real estate for a definite period with a specific starting and ending date is

a. an estate for years

b. an estate at will

c. an estate at sufferance

d. an estate from period to period

a. an estate for years

An estate for years, also known as a fixed-term lease, is a leasehold interest that has a specific duration with a clear starting and ending date. It does not continue indefinitely, and it provides the tenant with a specified period of occupancy.

which of the following describes a gross lease

a. an agreement in which the tenant pays a fixed rent and some or all of the utility and the landlord pays all taxes, insurance, and expenses related to the property

b. a lease in which the tenant pays rent plus some of the operating expenses related to the property

c. a lease in which the tenant pays the landlord a percentage of the monthly income derived from the property

d. an agreement allowing the tenant to terminate the lease if certain conditions near the premises become unbearable

a. An agreement in which the tenant pays a fixed rent, and some or all of the utilities, and the landlord pays all taxes, insurance, and expenses related to the property.

A gross lease is a lease agreement in which the tenant pays a fixed rent, and the landlord is responsible for paying all of the property's operating expenses, including taxes, insurance, and maintenance costs. The tenant typically does not have to worry about additional expenses beyond the fixed rent amount, as the landlord covers the property-related costs.

a tenant signs a lease that includes a schedule of rent increases on specific dates over the course of the lease term. what kind of lease has this tenant signed

a. percentage

b. net

c. graduated

d. index

c. graduated

In a graduated lease, also known as an indexed lease or step-up lease, the rent increases at predetermined intervals or dates specified in the lease agreement. These rent increases can be based on a variety of factors, such as fixed percentages, changes in the consumer price index (CPI), or other agreed-upon methods. This type of lease allows for gradual rent adjustments over time.

a tenant signs a lease that includes the following clause: “the stated rent under this agreement will be increased or decreased every three months based on the percentage change in the consumer price index (CPI) for that period.” what kind of lease has this tenant signed

a. percentage

b. net

c. graduated

d. index

d. index

This lease is an indexed lease, where the rent is tied to changes in the CPI and is adjusted periodically (in this case, every three months) to account for inflation or changes in the cost of living.

the death of either the landlord or the tenant will terminate the lease under which of the following tenancies

a. tenancy for years

b. periodic tenancy

c. tenancy at will

d. tenancy at sufferance

c. tenancy at will

A tenancy at will is a type of leasehold interest that is generally characterized by its indefinite duration and can be terminated by either party (landlord or tenant) at any time. Therefore, the death of either the landlord or the tenant would typically terminate the lease in this type of tenancy.

the tenant leases a heated apartment during a bitterly cold winter, but soon after the tenant moves in, the landlord fails to provide heat because of a defective central heating unit. the tenant vacates the premises and refuses to pay any rent. this is an example of

a. abandonment

b. actual eviction

c. constructive eviction

d. lessor negligence

c. constructive eviction

Constructive eviction occurs when a landlord's actions or failures to act result in making the premises uninhabitable or significantly interfering with the tenant's ability to use and enjoy the property as intended under the lease. In this case, the defective central heating unit rendered the apartment uninhabitable during a bitterly cold winter, prompting the tenant to vacate the premises. This can be considered constructive eviction, and the tenant may be relieved of their obligation to pay rent.

which type of insurance coverage insures an employer against MOST claims for job related injuries

a. consequential loss

b. workers’ compensation

c. casualty

d. suretly bond

b. workers' compensation

Workers' compensation insurance is designed to provide coverage for job-related injuries or illnesses suffered by employees. It typically covers medical expenses, lost wages, and rehabilitation costs for employees who are injured while performing their job duties. This insurance helps protect employers from legal claims related to workplace injuries by providing a no-fault system where employees are compensated for their injuries without the need to prove employer negligence.

avoid, control, transfer, or retain are the four alternative techniques of

a. tenant relations

b. acquiring insurance

c. risk management

d. property management

c. risk management

These techniques are used in risk management to address and manage various types of risks that individuals, businesses, and organizations face. They refer to different strategies for dealing with risks, such as avoiding certain risks, implementing controls to mitigate risks, transferring risks through insurance or contracts, or retaining risks by accepting them as part of the risk profile.

adaptations of property specifications to suit tenant requirements are

a. tax exempt improvements

b. tenant improvements

c. prohibited by most nonresidential leases

d. generally not a good idea

b. tenant improvements

Tenant improvements, often abbreviated as TIs, are changes or modifications made to a commercial or nonresidential property to meet the specific needs and requirements of a tenant. These improvements are often negotiated as part of a lease agreement and can include changes to the layout, interior, or functionality of the space to better suit the tenant's business needs.

a guest slips on an icy apartment building stair and is hospitalized. a claim against the building owner for medical expenses may be paid under which of the following policies held by the owner

a. workers’ compensation

b. casualty

c. liability

d. fire and hazard

c. liability insurance

Liability insurance, often referred to as premises liability insurance, is designed to cover expenses arising from injuries or accidents that occur on the property owner's premises for which they may be found legally responsible. In this case, the building owner's liability insurance would likely cover the medical expenses incurred by the injured guest.

a management agreement will include

a. all liens on the property

b. the property owner’s tax status

c. the extent of the manager’s authority

d. restrictions regarding ages of children

c. the extent of the manager's authority

The management agreement outlines the roles, responsibilities, and authority of the property manager, specifying what tasks they are authorized to perform on behalf of the property owner. It may include details about property maintenance, rent collection, lease administration, and other property management duties.

Items a, b, and d may be important factors in property management, but they are not typically included in the management agreement itself. Instead, information about property liens, the property owner's tax status, and restrictions regarding children are often addressed in separate documents, such as property records, tax documents, and lease agreements.

a property manager is offered a choice of three insurance policies with different deductibles. if the property manager selects the policy with the highest deductible, which risk management technique is being used

a. avoiding risk

b. retaining risk

c. controlling risk

d. transferring risk

b. retaining risk

By choosing a policy with a higher deductible, the property manager is accepting a greater portion of the financial risk associated with potential losses or claims. In other words, they are retaining more of the risk themselves rather than transferring it to the insurance company through a lower deductible policy.

asbestos, sick building syndrome (SBS), and lead-based paint are all examples of

a. issues beyond the scope of a property manager’s job description

b. problems found only in newly constructed properties

c. issues that arise under the americans with disabilities act (ADA)

d. environmental concerns that a property manager may have to address

d. environmental concerns that a property manager may have to address

These environmental concerns can affect the safety and habitability of a property, and property managers may need to address them to ensure compliance with relevant regulations and the well-being of occupants. They fall within the scope of a property manager's responsibilities related to maintaining the property and providing a safe and healthy living or working environment.

the manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. the manager would normally be considered the agent of

a. the building’s owner

b. the building’s tenants

c. both the owner and the tenants

d. neither the owner nor the tenants

a. the building's owner

The property manager is primarily responsible for representing and acting on behalf of the building's owner in managing the property, ensuring its maintenance, and overseeing its day-to-day operations. While the manager may interact with tenants and address their concerns, their primary fiduciary duty is to the property owner, who has hired them to manage the property on their behalf.

which of the following would be considered a variable expense when a manager develops an operating budget

a. employee wages

b. utilities

c. building repairs

d. basic operating costs

c. building repairs

cash reserves are needed to deal with unscheduled or variable expenses such as unexpected building repairs

in MOST market areas, rents are determined by

a. supply and demand factors

b. the local apartment owner’s association

c. HUD

d. a tenants union

a. supply and demand factors

Rents in the real estate market are primarily influenced by the interaction of supply and demand. Factors such as the availability of rental properties, the demand for housing in a specific area, local economic conditions, and other market dynamics play a significant role in determining rental prices. While government agencies like HUD (U.S. Department of Housing and Urban Development) may provide guidelines and regulations related to rent control and fair housing practices, the actual setting of rental rates is primarily driven by market forces. Rent control or tenant unions may have an impact in specific regions or under certain regulations but are not the primary factors influencing rents in most market areas.

an apartment complex is severely damaged by a tornado, making it uninhabitable. what type of insurance covers the landlord against the resulting loss of rent

a. fire and hazard

b. liability

c. consequential loss, use, and occupancy

d. casualty

c. consequential loss, use, and occupancy

consequential loss policies - also called business interruption insurance - offset loss of rental income due to disasters that keep a property from being used

a property manager hires a full time maintenance person. while repairing a faucet in one of the apartments, the maintenance person steals some jewelry and the tenants sues the owner. the property manager could protect the owner against this type of loss by purchasing

a. liability insurance

b. workers’ compensation insurance

c. a surety bond

d. casualty insurance

c. a surety bond

A surety bond, often referred to as a fidelity bond or employee dishonesty bond, provides coverage against theft, embezzlement, or dishonest acts committed by employees. In this scenario, where the maintenance person steals jewelry while working in one of the apartments, a surety bond could help protect the property owner against financial losses caused by the employee's actions. Liability insurance typically covers different types of risks, and workers' compensation insurance covers work-related injuries but may not provide coverage for theft or dishonesty by employees. Casualty insurance, on the other hand, primarily covers property damage and loss of income due to events like natural disasters and accidents.

residential leases are usually expressed as

a. an annual or monthly rate per square foot

b. a percentage of total space available

c. a monthly rate per unit

d. an annual rate per room

c. a monthly rate per unit

In residential leasing, the most common practice is to express the lease terms as a monthly rent amount per individual unit (e.g., per apartment, house, or condominium). This monthly rate is typically specified in the lease agreement and paid by the tenant to the landlord. Residential leases may also include other terms and conditions, such as the duration of the lease and any additional fees or charges.

a property manager repairs a leaking sink. this is classified as which type of maintenance

a. preventive

b. corrective

c. routine

d. construction

b. corrective maintenance

Corrective maintenance, also known as "repair maintenance," involves addressing and fixing specific issues or problems that have arisen with the property. In this case, the leaking sink is a problem that needs to be corrected or repaired to ensure the proper functioning of the property. Preventive maintenance, on the other hand, involves routine tasks and inspections aimed at preventing issues from arising in the first place, while routine maintenance encompasses regular, scheduled tasks like cleaning and minor upkeep. Construction, as a category, typically involves major structural or renovation work rather than everyday repairs.

a property manager who enters into a management agreement with an owner is usually

a. a special agent

b. a general agent

c. a universal agent

d. a designated agent

b. a general agent

A general agent is authorized to perform a broad range of tasks and make decisions on behalf of the property owner within the scope of the management agreement. This authority includes handling day-to-day property management activities, leasing, maintenance, and other responsibilities related to the property. However, the agent's authority is limited to the terms specified in the agreement and does not extend to matters beyond the property management scope.

a statement sent to an owner that reflects the entire debt service as an expense is called

a. a profit and loss statement

b. a cash flow report

c. a variable expense report

d. an operating budget statement

b. a cash flow report

A cash flow report provides a detailed breakdown of the property's income and expenses, including debt service (such as mortgage payments). This report is important for property owners to understand the financial performance of their real estate investments, as it shows how much cash is generated by the property after covering all expenses, including the debt service.

an insurance policy package that includes standard commercial property coverage such as fire, hazard, public liability, and casualty is called what kind of policy

a. coinsurance

b. multiperil

c. universal

d. surety

b. multiperil policy

A multiperil policy, also known as a multiperil insurance policy or multiperil coverage, is a type of insurance policy that combines coverage for multiple perils or risks, including property damage (such as fire and hazard), public liability, and casualty. This type of policy is designed to provide comprehensive coverage for various risks and is commonly used in commercial property insurance.

removing existing barriers when readily achievable in public buildings, such as adding braille markings to elevator buttons, is a requirement of which law

a. fair housing act

b. equal credit opportunity act

c. commercial and public accommodations

d. privately owned

c. Americans with Disabilities Act (ADA) - Title III: Commercial and Public Accommodations

Title III of the Americans with Disabilities Act (ADA) covers public accommodations, including businesses and facilities that are open to the public. It requires that existing barriers to accessibility be removed when it is readily achievable to do so, making facilities more accessible to individuals with disabilities. This can include measures like providing accessible signage, ramps, and elevator button markings to assist those with disabilities.

title III of the Americans with disabilities act (ADA) impacts which type of property

a. residential

b. industrial

c. commercial and public accommodations

d. privately owned

c. commercial and public accommodations

Title III of the ADA applies to commercial and public accommodations, which include businesses, facilities, and properties that are open to the public. It sets standards for accessibility and requires that these properties be accessible to individuals with disabilities, ensuring they can use and access the services provided. This includes various types of properties such as retail stores, restaurants, hotels, theaters, and more that fall under the category of commercial and public accommodations. Residential properties are generally not subject to Title III ADA requirements.

in evaluating rental applications, it is important for the property manager to establish consistent criteria for acceptable debt and income ratios in order to be in compliance with

a. federal antitrust laws

b. the americans with disabilities act

c. regulation z

d. the equal credit opportunity act

d. the Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending and extends to rental housing as well. Property managers should establish consistent and non-discriminatory criteria for evaluating rental applications, including criteria related to income and debt ratios, to ensure compliance with ECOA and to treat all applicants fairly and equally.

a subdivision declaration reads, “no property within this subdivision may be further subdivided fore sale or otherwise, an no property may be used for other than single-family housing.” this is an example of

a. a restrictive covenant

b. an illegal reverter clause

c. R-1 zoning

d. a conditional use clause

a. a restrictive covenant

A restrictive covenant is a legally binding agreement or condition that is often placed on a property by the developer or a homeowners' association to limit or restrict certain uses or actions on the property. In this case, the covenant restricts the subdivision of the property and limits its use to single-family housing. Violating such a covenant may lead to legal consequences.

a landowner who wants to use property in a manner that is prohibited by a local zoning ordinance but which would benefit the community can apply for which of the following

a. conditional use permit

b. prescriptive easement

c. occupancy permit

d. property allowance

a. a conditional use permit

A conditional use permit (CUP), also known as a special use permit or variance, is a zoning-related authorization that allows a landowner to use their property in a manner that is not typically allowed by the zoning ordinance, but under certain conditions and with community benefit. It permits uses that may be suitable in specific locations under specific conditions. The approval of a CUP is subject to various factors, including public interest and the potential impact on the community.

private land use controls include

a. subdivision regulations

b. covenants, conditions, and restrictions

c. environmental protection laws

d. comprehensive plan specifications

b. covenants, conditions, and restrictions

Covenants, conditions, and restrictions (CC&R) are private agreements or restrictions placed on the use of land or property by property owners, developers, or homeowners' associations. They dictate how the property can be used, what activities are allowed or prohibited, and often include rules for the upkeep and appearance of the property. CC&Rs are typically found in residential developments and can also be referred to as deed restrictions. Subdivision regulations, comprehensive plan specifications, and environmental protection laws are typically government-imposed land use controls, not private ones.

under its police powers, a municipality may regulate

a. resident occupations

b. ethnicity of owners

c. building uses

d. familial status

c. building uses

Police powers granted to municipalities allow them to regulate various aspects of land use and zoning, including the use of buildings and properties within their jurisdiction. This includes zoning ordinances that specify how properties can be used, such as residential, commercial, industrial, or mixed-use, among other regulations related to land use and building use.

Options a, b, and d (resident occupations, ethnicity of owners, and familial status) are typically not within the scope of what municipalities can regulate under their police powers. Regulations related to these factors may be subject to fair housing laws and anti-discrimination regulations at the federal and state levels.

the purpose of a building permit is to

a. indicate the property is suitable for habitation

b. maintain municipal control over the amount of building

c. provide evidence of compliance with municipal regulations

d. show compliance with restrictive covenants

c. provide evidence of compliance with municipal regulations

Building permits are typically required by municipalities to ensure that construction projects, alterations, or renovations comply with local building codes, zoning regulations, safety standards, and other municipal requirements. The issuance of a building permit provides evidence that the proposed construction or renovation project has been reviewed and approved by the relevant authorities and meets the necessary standards and regulations. Building permits help ensure that buildings and structures are constructed safely and in accordance with established rules and codes.

the use of borrowed money to finance an investment is called

a. leverage

b. appreciation

c. depreciation

d. capital gain

a. leverage

Leverage involves using borrowed funds, such as a mortgage or a loan, to make an investment with the aim of increasing potential returns. While leverage can amplify gains, it also involves risks because losses can also be magnified when using borrowed capital.

another name for depreciation is

a. cost recovery

b. leverage

c. capital gain

d. inflation

a. cost recovery

Depreciation, in the context of real estate and taxation, is often referred to as cost recovery. It involves recovering the cost of an income-producing asset over its useful life, which can be used as a tax deduction to offset income generated by the asset. This helps property owners recover the initial investment made in the property over time.

to determine whether a location can be put to future use as a retail store, one would examine

a. the building code

b. the list of permitted nonconforming uses

c. the housing code

d. the zoning ordinance

d. the zoning ordinance

The zoning ordinance specifies the permitted land uses in different zones or areas within a municipality. It defines the types of businesses or activities that are allowed in each zoning district, including whether retail stores are permitted and under what conditions. Property owners and developers need to review the zoning ordinance to determine the allowable uses for a specific location and whether they would be able to operate a retail store there.

a legal deed restriction can include

a. allowable race of purchasers

b. types of buildings that may be constructed

c. citizen status of residents

d. disposition of buildings to be constructed

b. types of buildings that may be constructed

Deed restrictions, often referred to as restrictive covenants or deed covenants, can impose limitations or conditions on how a property can be used or developed. These restrictions can specify the types of buildings that may be constructed, the architectural style, the minimum size of structures, and other land use or development-related requirements.

Options a, c, and d (allowable race of purchasers, citizen status of residents, and disposition of buildings to be constructed) are not legally permissible deed restrictions in the United States and are considered discriminatory practices that violate fair housing laws.

a restriction in a seller’s deed may be enforced by which of the following

a. court injunction

b. zoning board of appeal

c. city building commission

d. state legislature

a. court injunction

When there is a violation of a restriction or covenant contained in a deed, a party with a legal interest in enforcing the restriction, such as the property owner or an affected neighbor, may seek to enforce it through legal action. One common legal remedy is obtaining a court injunction, which is a court order that requires the offending party to comply with the terms of the deed restriction or cease activities that violate it. This legal process allows for the enforcement of deed restrictions. The zoning board of appeal, city building commission, and state legislature typically do not enforce specific deed restrictions; their roles are usually related to zoning, land use regulations, and building codes rather than private deed covenants.

a property owner owns a large tract of land. after an adequate study of all the relevant facts, the owner legally divides the land into 30 lots suitable for the construction of residences. in this situation, the property owner is acting as

a. a subdivider

b. a developer

c. a land planner

d. an urban planner

a. a subdivider

A subdivider is an individual or entity that takes a large tract of land and divides it into smaller lots or parcels for the purpose of sale or development. In this case, the property owner is subdividing the land into 30 lots suitable for residential construction, making them a subdivider. Developers, on the other hand, typically purchase subdivided land for development, while land planners and urban planners are professionals who may be involved in the planning and design of developments and communities but are not typically involved in the initial act of subdividing land.

a map illustrating the sizes and locations of streets and lots in a subdivision is called

a. a gridiron plan

b. a survey

c. a subdivision plat map

d. a property report

c. a subdivision plat map

A subdivision plat map, often simply referred to as a "plat map," is a detailed drawing or map that shows the layout of a subdivision, including the dimensions and boundaries of individual lots, streets, easements, and other relevant features. It is an important document used in real estate and land development to illustrate the legal descriptions and divisions of land within a subdivision.

in one city, developers are limited by the zoning law to constructing no more than an average of three houses per acre in any subdivision. what does this restriction regulate

a. clustering

b. gross density

c. out lots

d. covenants

b. gross density

Gross density is a measure of the number of dwelling units (in this case, houses) per acre of land within a subdivision. This restriction sets a specific limit on the maximum number of houses that can be built on each acre of land in the subdivision, ensuring that the development maintains a certain level of density as prescribed by the zoning law. Clustering refers to the arrangement of houses on smaller lots within a larger parcel of land to preserve open space, while out lots typically refer to undeveloped parcels or areas within a subdivision. Covenants are contractual agreements and restrictions that are not directly related to density regulations.

which of the following is a variance

a. an exception to a zoning ordinance

b. a court order prohibiting certain activities

c. a reversion of ownership

d. a nullification of an easement

a. an exception to a zoning ordinance

A variance is a special permission or exception granted by a local zoning board or authority to allow a property owner to deviate from the strict requirements of a zoning ordinance. It permits the property owner to use their land in a way that would otherwise be prohibited by the zoning regulations, usually due to unique circumstances or hardships. Variances are typically granted when it can be demonstrated that strict adherence to the zoning ordinance would create undue hardship or would be impractical.

permitted land use and set-asides, housing projections, transportation issues, and objectives for implementing future controlled development would all be found in a community’s

a. zoning ordinance

b. comprehensive plan

c. enabling act

d. land control law

b. comprehensive plan

A comprehensive plan, also known as a master plan or general plan, is a long-term planning document created by local governments to guide land use and development within a community. It typically includes policies and guidelines related to zoning, land use, transportation, housing, environmental protection, and other aspects of community development. The comprehensive plan serves as a blueprint for how a community envisions its growth and development in the future.

the difference between the cost basis of property and its net selling price is

a. cost recovery

b. appreciation

c. leverage

d. capital gain

d. capital gain

A capital gain is the profit realized from the sale of an asset, such as real estate, when the selling price exceeds the original cost basis. It represents the difference between what you originally paid for the property (cost basis) and what you receive when you sell it (net selling price). Capital gains can be subject to taxation, and they can be categorized as short-term or long-term, depending on the holding period of the asset.

a plat for a proposed subdivision is submitted to

a. the municipality

b. the property owners

c. the developer

d. the state

a. the municipality

The submission of a plat for a proposed subdivision involves presenting it to the local municipal or city government for review and approval. Municipalities have zoning and land use regulations that govern how land can be subdivided and developed, and the plat must comply with these regulations. The municipality's planning department or zoning board is responsible for reviewing and approving subdivision plats to ensure that they meet local requirements and standards.

restrictive covenants

a. are no longer effective when the title is transferred

b. apply only until the developers has conveyed the title

c. can be removed by a court of competent

d. apply to and bind successive owners of the property

d. apply to and bind successive owners of the property

Restrictive covenants are legal agreements that impose certain conditions, limitations, or restrictions on the use of a property. These covenants are typically recorded in the property's deed or in a separate document that runs with the land. They are designed to regulate how the property can be used and are intended to be binding on successive owners of the property. Even when the property is transferred to a new owner, the restrictive covenants remain in effect unless they are modified or removed through a legal process.

to protect the public from fraudulent interstate land sales, a developer involved in interstate land sales of 25 or more lots must

a. provide each purchaser with a printed report disclosing details of the property

b. pay the prospective buyer’s expenses to see the property involved

c. provide preferential financing

d. allow a 30 day cancellation period

a. provide each purchaser with a printed report disclosing details of the property

Under the Interstate Land Sales Full Disclosure Act (ILSA), developers selling land in interstate transactions involving 25 or more lots or units are required to provide purchasers with a printed property report that discloses detailed information about the property being sold. This requirement is aimed at providing transparency and information to prospective buyers to prevent fraudulent land sales. The other options (b, c, and d) do not align with the specific disclosure requirements under ILSA.

when is a certificate of occupancy issued

a. when the owner of a multifamily residential property wishes to limit the number of individuals who may live in a single unit

b. at the time a property owner applies for a building permit

c. after building construction work has been inspected and found satisfactory by the municipal inspector

d. when an application for a variance or conditional use permit has been granted by the zoning board

c. after building construction work has been inspected and found satisfactory by the municipal inspector

A certificate of occupancy (CO) is typically issued by the local municipal or city government after a thorough inspection of a property has been conducted and the construction or renovation work has been found to be in compliance with building codes, zoning regulations, and other local requirements. It confirms that the property is safe and suitable for occupancy and use in accordance with the approved plans and regulations. The issuance of a CO signifies that the property is ready for occupancy by its intended occupants.

regarding the federal lead based paint hazard reduction act, which statement is true

a. all residential housing built before 1978 must be tested for the presence of lead based paint before being listed for sale or rent

b. a disclosure statement must be attached to all sales contracts and leases involving residential properties built before 1978

c. a lead hazard pamphlet must be distributed to all prospective buyers but not to tenants

d. purchasers of housing built before 1978 must be given five days to test the property for the presence of lead based paint

b. A disclosure statement must be attached to all sales contracts and leases involving residential properties built before 1978.

Under the federal Lead-Based Paint Hazard Reduction Act (Title X), sellers and lessors of residential properties built before 1978 are required to provide a lead-based paint disclosure statement to prospective buyers and tenants. This disclosure informs them about the potential presence of lead-based paint hazards and provides information on their rights and responsibilities related to lead-based paint in the property. Testing for lead-based paint is not mandatory before listing for sale or rent, and there is no specific requirement for a lead hazard pamphlet to be distributed to tenants. Additionally, there is no federal requirement for purchasers to be given five days to test the property for lead-based paint.

the term encapsulation refers to

a. the process of sealing a landfill with three to four feet of topsoil

b. the way in which insulation is applied to pipes and wiring systems

c. the method of sealing disintegrating asbestos

d. the way in which lead based paint particles become airborne

c. the method of sealing disintegrating asbestos

Encapsulation in the context of asbestos refers to the process of sealing or enclosing asbestos-containing materials to prevent the release of asbestos fibers into the air. It typically involves using a specialized coating or adhesive to cover or encapsulate the asbestos, creating a barrier that prevents the material from deteriorating and becoming a health hazard. This is done to ensure the safety of individuals by minimizing the risk of asbestos exposure.

a real estate professional showed a pre world war I house to a prospective buyer. the buyer has two toddlers and is worried about potential health hazard. which of the following is true

a. there is a risk that urea formaldehyde foam insulation was used in the original construction

b. the real estate professional can offer to personally inspect for lead and remove any lead risks

c. because of the age of the house, there is a good likelihood of the presence of lead based paint

d. removal of lead based paint and asbestos hazard is covered by standard title insurance policies

c. Because of the age of the house, there is a good likelihood of the presence of lead-based paint.

Houses built before the mid-1970s often used lead-based paint, so there is a significant likelihood of the presence of lead-based paint in a pre-World War I house. This is a concern, especially for households with young children, as lead-based paint can pose health hazards when it deteriorates and becomes accessible to children. Homebuyers and tenants in such properties should be aware of the potential lead-based paint hazards and take appropriate precautions.

which of the following is true regarding asbestos

a. improper removal of asbestos can cause further contamination of a building

b. asbestos cause health problems only when it is eaten

c. the level asbestos in a building is affected by weather conditions

d. HUD requires that all asbestos containing materials be removed from all residential

a. Improper removal of asbestos can cause further contamination of a building.

Asbestos is a hazardous material, and when not handled properly during removal or abatement, it can release asbestos fibers into the air, which can lead to contamination of the building and pose serious health risks to occupants. Proper asbestos abatement procedures, including containment and safe removal by trained professionals, are essential to prevent further contamination.

a factor that may contribute to the growth of mold is

a. high humidity

b. adequate ventilation

c. intact roofing

d. properly installed gutters

a. High humidity

High humidity is a factor that can contribute to the growth of mold. Mold thrives in moist and humid environments. When the indoor humidity levels are high, especially in areas with poor ventilation, it creates conditions conducive to mold growth. Adequate ventilation, intact roofing, and properly installed gutters can help reduce the risk of mold growth by managing moisture and preventing water intrusion.

federal underground storage tank (UST) regulations require that

a. home fuel oil tanks in basements be registered with the EPA

b. septic tanks be pumped every five years

c. liquid petroleum tanks that store at least 10% of their volume underground be in compliance

d. states not develop regulations more stringent than the federal requirements

c. Liquid petroleum tanks that store at least 10% of their volume underground be in compliance.

Federal underground storage tank (UST) regulations, established by the U.S. Environmental Protection Agency (EPA), require that liquid petroleum tanks, such as those used for storing gasoline or diesel fuel, which store at least 10% of their volume underground, must be in compliance with federal regulations. These regulations aim to prevent leaks and spills from underground storage tanks, which can contaminate soil and groundwater.

which of the following describes the process of creating a landfill site

a. waste is liquefied, treated, and pumped through pipes to tombs under the water table

b. waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants

c. waste is compacted and sealed in a container, then placed in tomb designed to last several thousand years

d. waste is buried in an underground concrete vault

b. Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants.

This describes the process of creating a landfill site. In modern landfill construction, layers of waste are deposited in a pit, compacted, and then covered with a layer of topsoil and vegetation. This process helps contain and manage waste while also minimizing environment

with the exception of the innocent landowner, liability under the superfund is

a. limited to the owner of record

b. joint and several and retroactive, but not strict

c. voluntary

d. strict, joint and several, and retroactive

d. Strict, joint and several, and retroactive.

Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly referred to as the Superfund, liability for the cleanup of hazardous waste sites is strict, joint and several, and retroactive. This means that parties, including current and former owners and operators of a contaminated site, can be held liable for cleanup costs, and liability is not limited to the owner of record. Liability is strict, meaning that it can be imposed even if a party did not cause the contamination. Liability is also joint and several, meaning that parties can be held individually responsible for the full cost of cleanup, and then they can pursue contributions from other potentially responsible parties. Additionally, liability can be retroactive, meaning that it applies to activities that occurred before the enactment of CERCLA in 1980. There is an exception for the "innocent landowner" defense, which can provide some protection for property owners who meet certain criteria and can demonstrate that they were unaware of the contamination when they acquired the property.

radon poses the greatest potential health risk to people when it is

a. contained in insulation material used in residential properties during the 1970s

b. found in high concentrations in unimproved land

c. trapped and concentrated in inadequately ventilated areas

d. emitted by malfunctioning or inadequately ventilated appliances

c. Trapped and concentrated in inadequately ventilated areas.

Radon poses the greatest potential health risk to people when it is trapped and concentrated in inadequately ventilated areas, such as homes and buildings. Radon is a naturally occurring radioactive gas that can seep into buildings through cracks in foundations, walls, and floors. When it becomes trapped indoors and accumulates in high concentrations, it can increase the risk of lung cancer when people breathe in the radioactive particles it emits. Adequate ventilation and proper mitigation measures are important for reducing radon levels in indoor spaces and minimizing health risks.

what do urea formaldehyde foam insulation (UFFI), lead based paint, and asbestos have in common

a. they all pose risk to humans because they may emit harmful gases

b. they all were banned in 1978

c. all three were used in insulating materials

d. they were all used at one time in residential construction

d. They were all used at one time in residential construction.

Urea formaldehyde foam insulation (UFFI), lead-based paint, and asbestos were all used in residential construction at various times in the past. However, due to their associated health risks, their use has been significantly restricted or banned in certain applications. These materials have been the subject of regulatory actions to protect public health and safety:

• Urea formaldehyde foam insulation (UFFI) was used as an insulating material in homes but was associated with indoor air quality issues. It was less commonly used after concerns arose about its potential for emitting harmful gases.

• Lead-based paint was commonly used in homes until its use was banned for residential purposes in 1978 due to the health hazards associated with lead exposure, particularly to children.

• Asbestos was used in a wide range of building materials, including insulation, until its health risks, such as causing lung cancer and mesothelioma, became widely recognized. Its use has been significantly reduced, although it is not completely banned.

While all three materials were used in insulating and construction applications, they each present unique health risks and regulatory histories.

a method of sealing off disintegrating asbestos is called

a. capping

b. encapsulation

c. containment

d. contamination closure

b. Encapsulation

A method of sealing off disintegrating asbestos is called encapsulation. Encapsulation involves the application of a sealant or coating to asbestos-containing materials to prevent the release of asbestos fibers into the air. This process helps contain and stabilize the asbestos, reducing the risk of exposure and contamination.

lead based paint

a. is still commonly used in residences

b. can be found in all commercial buildings

c. requires in a renovations that a residential contractor be trained and certified

d. is not dangerous when ingested

c. Requires, in renovations, that a residential contractor be trained and certified.

Lead-based paint is hazardous, especially to young children, when it deteriorates or is disturbed during renovations, repairs, or painting projects. To address this hazard, the U.S. Environmental Protection Agency (EPA) established the Renovation, Repair, and Painting (RRP) Rule. This rule requires that contractors working on renovation projects in pre-1978 homes and child-occupied facilities be trained and certified in lead-safe work practices. The goal is to minimize the risk of lead exposure during renovation work, as the dust and debris generated during such activities can contain lead particles that pose health risks if ingested or inhaled. Therefore, option c is correct, while options a, b, and d are incorrect.

the most common source of harmful lead in older residential properties is

a. asbestos

b. basements

c. appliances

d. alkyd oil based paint

d. Alkyd oil-based paint

The most common source of harmful lead in older residential properties is alkyd oil-based paint. Many older homes built before the ban on lead-based paint in 1978 used such paint, and when it deteriorates or is disturbed, it can create lead dust or chips that pose a health risk, especially to children who may ingest or inhale it. Lead-based paint was commonly used for interior and exterior surfaces in older homes, making it a primary source of lead exposure in such properties. Asbestos is a different material and is not related to lead-based paint, while basements and appliances are not direct sources of lead.

urea formaldehyde is found in residential properties in

a. lead based paints

b. insulating foam

c. home appliances

d. USTs

b. Insulating foam

Urea formaldehyde foam insulation (UFFI) was used in residential properties as an insulating material. It was a type of foam insulation that was applied as a liquid and then expanded to fill cavities in walls and ceilings. However, concerns arose about the potential for UFFI to emit harmful formaldehyde gas, which led to restrictions on its use and the removal of existing UFFI in some cases. Therefore, UFFI is associated with residential insulation rather than other materials like lead-based paint, home appliances, or underground storage tanks (USTs).

in regulations regarding lead based paints, HUD requires that

a. homeowners test for its presence

b. paint be removed from surfaces before selling

c. known lead based paint hazards be disclosed

d. only homeowners deal with its removal

c. Known lead-based paint hazards be disclosed

Under regulations regarding lead-based paint, the U.S. Department of Housing and Urban Development (HUD) requires that known lead-based paint hazards be disclosed to potential buyers or renters of residential properties built before 1978. This disclosure is intended to inform individuals about the potential presence of lead-based paint hazards in older properties. Homeowners, landlords, and sellers are responsible for providing this information to prospective buyers or tenants, and it is an important part of ensuring lead safety in residential properties. Option c is the correct answer.

radon is

a. only found in the eastern United States

b. easy to detect because of its odor

c. a known human carcinogen

d. not found in older homes

c. A known human carcinogen

Radon is a naturally occurring radioactive gas that is found in the earth's soil and can enter homes and buildings through cracks and openings in the foundation. It is colorless, odorless, and tasteless, making it difficult to detect without specialized testing equipment. Radon is classified as a known human carcinogen by organizations such as the U.S. Environmental Protection Agency (EPA) and the World Health Organization (WHO) because prolonged exposure to elevated levels of radon gas is associated with an increased risk of lung cancer. Radon can be found in homes and buildings across the United States and is not limited to any specific region. Testing for radon is recommended in areas where elevated levels are more common, but it is a potential concern in homes of all ages, including older homes.

contamination from underground storage tanks is

a. found only in petroleum stations

b. addressed by EPA regulations

c. only caused by tanks currently in use

d. easily detected and eliminated

b. Addressed by EPA regulations

Contamination from underground storage tanks (USTs) is addressed by regulations established by the U.S. Environmental Protection Agency (EPA). USTs can store various substances, including petroleum products and hazardous chemicals. Over time, USTs can deteriorate or leak, leading to soil and groundwater contamination. To address this environmental concern and prevent further contamination, the EPA has established regulations and guidelines for the installation, operation, maintenance, and closure of USTs. These regulations aim to ensure proper handling and monitoring of USTs to minimize the risk of contamination and protect the environment. Detection and cleanup of UST contamination can be complex and costly, and it is not always easy to detect or eliminate contamination once it occurs.

the presence of underground water contamination is

a. a major problem in the United States

b. separate from private wells and public water systems

c. covered by very few state and federal laws

d. the testing responsibility of the real estate professionals

a. A major problem in the United States

The presence of underground water contamination is indeed a major problem in the United States. Groundwater contamination can result from various sources, including leaking underground storage tanks, industrial discharges, agricultural runoff, and more. Contaminated groundwater can pose significant health and environmental risks. To address this issue, there are state and federal laws and regulations that govern groundwater protection and contamination remediation. Testing for water quality and contamination is typically the responsibility of water authorities, environmental agencies, and sometimes property owners, but it is not the primary responsibility of real estate professionals. However, real estate professionals may be aware of potential contamination concerns and advise their clients accordingly.

CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites

a. exempt from responsibility those sites that contaminate neighboring properties

b. release from liability those owners of conaminated property who did not actually cause known contamination

c. make no provision for recovering Superfund expenses incurred in cleanup operations

d. impose strict, joint and several, and retroactive liability on potentially responsible parties

d. Impose strict, joint and several, and retroactive liability on potentially responsible parties

CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) regulations, which administer the Superfund program, impose strict, joint and several, and retroactive liability on potentially responsible parties (PRPs) for the cleanup of hazardous waste sites. This means that parties found to be responsible for contamination can be held liable for the entire cost of cleanup, even if they were not the sole contributors to the contamination. It is a powerful tool for holding those who are potentially responsible for environmental contamination accountable for the cleanup costs, and it applies to contaminated sites that may impact neighboring properties as well.

asbestos dust can cause

a. lung disease

b. radiation sickness

c. skin cancer

d. AIDS

a. Lung disease

Asbestos dust exposure is known to cause various lung diseases, including asbestosis, lung cancer, and mesothelioma. These diseases can be severe and even fatal, and they are primarily associated with the inhalation of asbestos fibers. While asbestos is not linked to AIDS, it is important to take precautions when handling or encountering asbestos-containing materials to avoid exposure and potential health risks.