Mastering Real Estate Principles, Eighth Edition - Unit 24

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What clause is included in most homeowner insurance policies?

Coinsurance clause

Defeasance clause

Alienation clause

Escalator clause

If a homeowner’s insurance policy provides for coverage that is less than 80 percent of the property’s replacement cost, then a loss on the property would be settled for

the total replacement cost.

the cost of repair from the lowest bidder.

either the actual cash value or the prorated cost of repair.

the property’s market value.

A property manager works in the best interest of the

the local government.

the property’s tenants.

the property’s owner.

bank holding the mortgage on the property.

What reason would LEAST likely be the cause of a high vacancy rate in an apartment building?

High rent

Incompetent property management

Poor location of the property

A highly visible advertising campaign

A property management agreement typically includes a

statement of the owner’s objectives for the property.

list of the property’s current tenants.

statement of the manager’s qualifications.

statement of the owner’s supervisory responsibilities.

A property manager’s compensation is most likely to be based on a percentage of

the standard management fee for the area.

net income.

gross income.

the operating expenses.

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