A property management agreement authorizes the manager to spend up to $500 on emergency repairs without prior owner approval. A pipe bursts and the repair costs $450. The manager hires a plumber immediately. Has the manager acted properly?
Correct Answer
A) Yes, because the repair cost is within the authorized spending limit for emergencies
The property management agreement authorized the manager to spend up to $500 on emergency repairs without prior approval. The $450 repair is within that limit.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Leasing Property Management Question
Background Knowledge for Leasing Property Management
Real World Application in Leasing Property Management
Common Mistakes to Avoid on Leasing Property Management Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
More Leasing Property Management Questions
A tenant with a hearing impairment asks the landlord for permission to have a visual fire alarm system installed in the unit. The building is privately owned and receives no federal assistance. Under the federal Fair Housing Act, this request is best described as a
An investor leases a vacant parcel for 50 years in order to construct an office building on the site. What type of lease is this?
A Kentucky sales associate asks about the broker will be paid for management. What is the best answer?
Which Kentucky rule applies when a client hires the brokerage for property management?
Which of the following is NOT a leasehold estate classified by how long the tenant's possession lasts?
- → An owner lets a friend stay in a cottage with the owner's consent, with no fixed term, no rent due on any regular schedule, and the understanding that either party may end the arrangement at any time. What type of tenancy is this?
- → At move-in, the landlord collects money that may later be used for unpaid rent or damage beyond ordinary wear and tear. What is that payment called?
- → A residential tenant stops paying rent after the landlord ignores two months of written requests to repair a furnace that failed in mid-winter. The tenant stays in the unit and defends the landlord's suit for the unpaid rent. Which doctrine most directly supports the tenant's defense?
- → A property manager of a 40-unit apartment complex budgets $75 per unit per month, or $3,000, into a dedicated account, and $36,000 accumulates over twelve months. The account is designated solely for foreseeable repair and upkeep needs such as exterior painting, roof patching and appliance repair, and not for the manager's compensation or for day-to-day operating costs. Which budget item does the dedicated account represent?
- → Which of the following is NOT normally part of a property manager's obligations to the owner?
- → A property manager prepares an annual operating budget that includes money set aside for roof repairs, painting, and other expected upkeep. What is that set-aside commonly called?
- → What is a 'triple-net lease' (NNN) in commercial real estate?
- → A commercial tenant wants to sublease half of her leased space to another business. The original lease is silent on subleasing. Can the tenant sublease the space?
- → A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?
- → What is a 'ground lease' in commercial real estate?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
How to Review Real Estate Leasing Questions Without Mixing Residential and Commercial Rules
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
How to Review Real Estate Leasing Questions Without Mixing Residential and Commercial Rules: A Practical Study Loop
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
Previous Question
A property manager deposits tenant security deposits into the manager's personal checking account and uses the funds to pay personal bills. What fiduciary duty has the manager violated?
Next Question
A property manager collects monthly rent from tenants and deposits the funds into a separate account that holds only client funds. What is this account called?