Chapter 16

Question 1

Nature of Property Management

Answer 1

Managing the propoerty of another for a fee
need a realestate license
Exceptions:
* Selling or leasing out our OWN property
* Employees of an entity managing thier own property
* No license required for managing an HOA

Question 2

TP - general agency agreement

Property Management Relationship

Review types of agency agreements

Answer 2

The property management agreement creates a General Acency Agreement

The relationship begins with mutal assent and a written agreement

Parties
Owner
Firm
Brokers, PB, staff

Question 3

Property Management Fees

Answer 3

• Percentages
• Flat fees
• Per unit fees
• Various combinations

Note: NCREC does not care how property managers agree to charge their clients/homeowners

Question 4

NOT testible

Property Management Agreement

Answer 4

• Must be in writing (from the formation of the agreement/relationship)
• Include property descriotion
• Has a begining and end date
• Includes management fees
• Firms responsibilities
• Authority they are given
• Reporting
• Owners responsibilities
• Termination duties

Question 5

Property Managers role

Answer 5

Maximize owners net income
Perserve the value while generating income

Question 6

TP: know these for test

Typical Property Manager Duties

Answer 6

• Creating a budget
• Planning capital expenditures
• Calculating cash flow
• RCreating reports
• Marketing property
• Screening tenenats
• Maintainiing the property
• Engage in competitive bidding
• Create market analysis on trends and effects on property
• Create leasing concessions to attract and retain trenants

Question 7

Reminder: Property Managers can use unlicesed staff to:

Answer 7

1. Show properties for rent
2. Collect rent
3. Fill in blanks on a lease form

Question 8

Property Managers CANNOT use unlicensed staff for:

Answer 8

• Negotiate
• Receive commissions
• Give advise
• show properties for SALE

Question 9

Rent Schedule (defiinition)

Answer 9

Amount you will rent the property for

Question 10

As a Property Manager you must comply with federal laws

Question 11

Criminal Record Check

Question 12

Trust Account Review

Answer 12

A trust account is NOT required if

Question 13

Provisional Broker handling MOney

Answer 13

All monies reciedv by a provisional pbroker need to be handed over to BIC immediatley

Earnest money deposited withing 3 business/banking days of receipt
t must be received withiin 3 banking days

Question 14

Earnest Money Deposit

Answer 14

Earnest money must be deposited within 3 business/banking days of receipt

Exception:
Checks in sales contracts can be held and deposited within 3 banking days of acceptance of contract

Cash: immediate or withinn 3 days