Glossary of IL CH14 Basic Real Estate Concepts Review Questions

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All of the following statement about property management are correct EXCEPT:

A. property management is a specialized field within the real estate industry
B. a property manager acts as an agent of the property owner
C. the terms prop
C. the terms property manager and resident manager always have the same meaning
Martin Kim manages an apartment building for the Ace Apartment Rental Company. Martin uses one of the apartments in the building he manages as his principal residence. Under these circumstances, Martin:

A. is not require to hold an Illinois re
A. is not require to hold an Illinois real estate license
A budget on a forecast of income and expense anticipated over a period of years is called a(n):

A. stabilized budget
B. projected Budget
C. anticipated budget
D. operating budget
A. stabilized budget
When building occupany reaches 98 percent, this tends to indicate that:

A. rents should be lowered
B. rents should be raised
C. management is ineffective
D. the building needs remodeling
B. rents should be raised
The agency relationship between an owner a property manager is a:

A. universal agency
B. general agency
C. special agency
D. transactional agency
B. general agency
Which of the following statements about hazard insurance is NOT correct?

A. they are not assignable
B. they contain a coinsurance clause
C. they must be an insurable interest
D. they protect only the person or persons named in t
A. they are not assignable
If a home valued at $200,000 and insured for $120,000 by a policy with an 80 percent coinsurance clause suffers a loss of $175,000 from an insured hazard, what amount will the insurance company pay?

A. $96,000
B. $120,000
C. 160,000
B. $120,000
Which of the following identifies a policy insuring agaist loss caused by structual defects?

A. fire and extended coverage
C. HO-1
D. HO-6
All of the following are true regarding Illinois referral fees paid by property manager or owner to an unlicensed tenant EXCEPT:

A. the tenants referred must be seeking a unit in the same building or complex
B. the lessee cannot refer mor
C. the lessee can show the unit, but cannot discuss the terms or conditions of the lease
An agency relationship exists between the:

A. property manager and tenant
B. property manager and owner
C. property manager, tenant, and owner
D. property manager and janitor
B. property manager and owner

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