A property manager’s compensation may be
based on any of the following EXCEPT
Detailed Answer
a. A property manager may not solicit or
accept gratuities from suppliers of goods
or services.
2
Jerry Wright, the owner of a commercial
building, estimates the depreciation of the
physical plant at $15,000, the furniture and
fixtures at $8,000, and the machinery at
$7,500. If he is in the 40% bracket, his tax
savings would be
Detailed Answer
a. The owner would save 40% of the total
depreciation; ($15,000 + $8,000 + $7,500)
× 0.40 = $12,200.
3
When an appraiser deducts depreciation
using the reproduction cost of a building,
the depreciation represents
Detailed Answer
b. In an appraisal, depreciation is a loss of
value in property due to any cause.
4
The Millers put their house on the market,
the Blacks made a written purchase offer,
and the Millers accepted the offer in writing.
When is the contract valid?
Detailed Answer
c. Acceptance of an offer must be communicated
to the offeror.
5
John offers $100,000 for a home listed at
$120,000. The seller counteroffers at
$110,000. At this point
Detailed Answer
c. Once there is a counteroffer the original
offer is void.
6
All are protected classes EXCEPT
Detailed Answer
a. Protected classes include national origin,
race, and handicap.
7
What is the square footage of a room measuring
20 feet by 40 feet?
Michael Brown refuses to sell his farm to the
state, which needs it to complete the route
for a new highway. The state may go to court
and ask that his farm be condemned, allowing
the state to purchase the land using its
right of
Detailed Answer
d. The government’s right of eminent
domain is enforced through
condemnation.
9
In constructing her financial report, Noel
Carpenter estimates that her real estate
holdings have appreciated by 18% since
purchase. If the original value was $585,000,
what would her balance sheet show now?
Detailed Answer
a. The property today is valued at 118% of
purchase price: $585,000 × 1.18 =
$690,300.
10
The type of deed that provides the least protection
is
Detailed Answer
b. A quitclaim deed is the weakest type of
deed for a grantee to receive because no
warranty of good title is given by the
grantor.