MONTANA PROPERTY PRACTICE TEST 2026
ACTUAL EXAM QUESTIONS WITH CORRECT
ANSWERS
◉ Downsizing. Answer: What is a disadvantage of working as an
employee manager?
◉ to gain expertise. Answer: Why would owners hire property
managers?
◉ It's the right way to do business. Answer: Why should a PM be MOST
concerned about ethics?
◉ Industrial, Commercial, Residential, and Special Purpose. Answer:
What are the 4 major classifications of real estate?
◉ False. Answer: Knowledge of the owner's long-term goals is of little
value to the property manager.
◉ True. Answer: High-tech companies often locate near universities in
incubator spaces.
,◉ True. Answer: Loft buildings are often old multistory manufacturing
buildings that have been converted into office space, residential, and
storage space.
◉ False. Answer: Property managers do not need to be involved in
community activities.
◉ False. Answer: Slumlords are owners who pour money back into
older properties.
◉ True. Answer: The oldest professional organization of property
managers is the Building Owners and Managers Association.
◉ down payment, equity cash flow, equity reversion
property purchase price, net operating income, reversion
mortgage amount, mortgage debt service, loan balance
mortgage amount, equity cash flow, reversion. Answer: What are the
components of the cash flow for the mortgage position?
◉ False. Answer: A Certified Property Manager (CPM) is a member of
the National Apartment Association.
◉ True. Answer: Ethical behavior is often considered the equivalent of
fairness and putting the client's interest ahead of the manager's
,◉ False. Answer: The primary function of a property manager is to
extract as much money as possible from the managed property.
◉ True. Answer: The automobile made it possible to develop suburbs a
long distance from the city center.
◉ generate the greatest income for owner. Answer: The primary function
of the property manager is to
◉ invention of steel frame buildings and elevators. Answer: One of the
factors that has contributed to the development of property management
is the
◉ Registered Apartment Manager (RAM). Answer: The oldest
residential property management certification program in the United
States and which is HUD-approved is
◉ Office Buildings. Answer: Commercial real estate includes
◉ Residential. Answer: The largest demand for the services of the
professional property manager is found in what type of property?
, ◉ True. Answer: One business cycle consists of expansion, recession,
contraction, and revival.
◉ False: Business cycles are recurrent but not periodic. Answer: Long-
term business cycles occur regularly once a year.
◉ False. Conditions that effect long-term movements are the result of
population growths, technological breakthroughs, the rate of savings and
investment, and the use of natural resources. Answer: Hurricanes and
terrorist attacks are considered part of long-term movements.
◉ True. Answer: The management plan considers the surrounding area,
the subject property, and the owner's goals.
◉ False. Lots of various factors can effect real estate, such as population
trends, demographics of the population, local government action, ratings
of schools in the area, etc. Answer: Real estate is not generally
influenced by outside market forces.
◉ True. Answer: When taking over a new property, the manager should
begin by reading all the existing leases.
◉ False. Owners' goals vary widely among the individual, corporate,
fiduciary, and government owners. Answer: Owners of rental properties
usually have similar goals and interests.
ACTUAL EXAM QUESTIONS WITH CORRECT
ANSWERS
◉ Downsizing. Answer: What is a disadvantage of working as an
employee manager?
◉ to gain expertise. Answer: Why would owners hire property
managers?
◉ It's the right way to do business. Answer: Why should a PM be MOST
concerned about ethics?
◉ Industrial, Commercial, Residential, and Special Purpose. Answer:
What are the 4 major classifications of real estate?
◉ False. Answer: Knowledge of the owner's long-term goals is of little
value to the property manager.
◉ True. Answer: High-tech companies often locate near universities in
incubator spaces.
,◉ True. Answer: Loft buildings are often old multistory manufacturing
buildings that have been converted into office space, residential, and
storage space.
◉ False. Answer: Property managers do not need to be involved in
community activities.
◉ False. Answer: Slumlords are owners who pour money back into
older properties.
◉ True. Answer: The oldest professional organization of property
managers is the Building Owners and Managers Association.
◉ down payment, equity cash flow, equity reversion
property purchase price, net operating income, reversion
mortgage amount, mortgage debt service, loan balance
mortgage amount, equity cash flow, reversion. Answer: What are the
components of the cash flow for the mortgage position?
◉ False. Answer: A Certified Property Manager (CPM) is a member of
the National Apartment Association.
◉ True. Answer: Ethical behavior is often considered the equivalent of
fairness and putting the client's interest ahead of the manager's
,◉ False. Answer: The primary function of a property manager is to
extract as much money as possible from the managed property.
◉ True. Answer: The automobile made it possible to develop suburbs a
long distance from the city center.
◉ generate the greatest income for owner. Answer: The primary function
of the property manager is to
◉ invention of steel frame buildings and elevators. Answer: One of the
factors that has contributed to the development of property management
is the
◉ Registered Apartment Manager (RAM). Answer: The oldest
residential property management certification program in the United
States and which is HUD-approved is
◉ Office Buildings. Answer: Commercial real estate includes
◉ Residential. Answer: The largest demand for the services of the
professional property manager is found in what type of property?
, ◉ True. Answer: One business cycle consists of expansion, recession,
contraction, and revival.
◉ False: Business cycles are recurrent but not periodic. Answer: Long-
term business cycles occur regularly once a year.
◉ False. Conditions that effect long-term movements are the result of
population growths, technological breakthroughs, the rate of savings and
investment, and the use of natural resources. Answer: Hurricanes and
terrorist attacks are considered part of long-term movements.
◉ True. Answer: The management plan considers the surrounding area,
the subject property, and the owner's goals.
◉ False. Lots of various factors can effect real estate, such as population
trends, demographics of the population, local government action, ratings
of schools in the area, etc. Answer: Real estate is not generally
influenced by outside market forces.
◉ True. Answer: When taking over a new property, the manager should
begin by reading all the existing leases.
◉ False. Owners' goals vary widely among the individual, corporate,
fiduciary, and government owners. Answer: Owners of rental properties
usually have similar goals and interests.
