UNIT 3 BEYOND THE SINGLE-FAMILY
HOME CONDOS, TOWNHOMES, AND
RESIDENTIAL LEASING EXAM
QUESTIONS AND ANSWERS
Regarding a common interest community (CIC) property that has NOT been approved
by the Federal Housing Administration (FHA), a seller may make their property more
marketable by - Answer-offering seller financing.
Which type of property can be converted into a common interest community? - Answer-
Any property
Unless directed otherwise by the owner, Minnesota law requires a property manager to
deposit rents and security deposits in - Answer-the broker's trust account.
How might a property manager market residential rental property?
A) Online rental resources
B) Newspaper advertising
C) Property rental magazines
D) All of these - Answer-D) All of these
Is an Agency Relationships in Real Estate Transactions disclosure required in
residential leasing? - Answer-Yes, because the disclosure must be made at the first
substantive contact.
After signing the purchase agreement, a buyer received all of the required CIC
disclosure documents. If the buyer chooses to rescind, how would he do so? - Answer-
Both the buyer and seller must sign the Cancellation of Purchase Agreement.
In a condominium development, all of the following would be considered limited
common elements EXCEPT
A) reserved parking.
B) storage units.
C) balconies.
D) any lawn area contiguous to the unit. - Answer-D) any lawn area contiguous to the
unit.
Your client, a real estate developer, asks you how to create a condominium in
Minnesota. You advise your client to - Answer-record a declaration.
Terry uses a wheelchair and is looking at a one-bedroom apartment, which is not
handicap accessible. Terry would like the unit modified to make it more accessible.
, Which of the following statements regarding Terry's request is TRUE? - Answer-The
landlord must allow the tenant to make modifications at the tenant's expense.
When an individual makes application for a residential rental unit, she should be ready
to provide the property manager with all of the following information EXCEPT
A) her date of birth.
B) her Social Security number.
C) fitness club information.
D) information on bankruptcies and evictions. - Answer-D) fitness club information.
Which of the following is considered a limited common element?
A) Roof on the condominium building
B) Elevator
C) Guest parking lot
D) Patio - Answer-D) Patio
All of the following would be considered common elements EXCEPT
A) the parking area.
B) the unit occupied by the owner.
C) the structure.
D) the swimming pool. - Answer-B) the unit occupied by the owner.
Which of the following would be a good reason for an owner to consider leasing rather
than selling?
A) The owner avoids the tax consequences of selling a home.
B) The owner has little or no equity or owes more than the property is worth.
C) Rental income will help the owner qualify for a mortgage.
D) Being a landlord is easier than selling a property. - Answer-B) The owner has little or
no equity or owes more than the property is worth.
Which of these resources would a property manager use to conduct a competitive rental
market analysis (CRMA)?
A) Tax records
B) Published transactions
C) Multiple listing service records
D) All of these - Answer-D) All of these
An agent has entered into his first lease listing with a property owner. The agent must
be prepared to represent the owner and perform all of the following services EXCEPT -
Answer-signing the lease.
In a common interest community, the common elements are defined as - Answer-
portions of the property designated for common ownership.
HOME CONDOS, TOWNHOMES, AND
RESIDENTIAL LEASING EXAM
QUESTIONS AND ANSWERS
Regarding a common interest community (CIC) property that has NOT been approved
by the Federal Housing Administration (FHA), a seller may make their property more
marketable by - Answer-offering seller financing.
Which type of property can be converted into a common interest community? - Answer-
Any property
Unless directed otherwise by the owner, Minnesota law requires a property manager to
deposit rents and security deposits in - Answer-the broker's trust account.
How might a property manager market residential rental property?
A) Online rental resources
B) Newspaper advertising
C) Property rental magazines
D) All of these - Answer-D) All of these
Is an Agency Relationships in Real Estate Transactions disclosure required in
residential leasing? - Answer-Yes, because the disclosure must be made at the first
substantive contact.
After signing the purchase agreement, a buyer received all of the required CIC
disclosure documents. If the buyer chooses to rescind, how would he do so? - Answer-
Both the buyer and seller must sign the Cancellation of Purchase Agreement.
In a condominium development, all of the following would be considered limited
common elements EXCEPT
A) reserved parking.
B) storage units.
C) balconies.
D) any lawn area contiguous to the unit. - Answer-D) any lawn area contiguous to the
unit.
Your client, a real estate developer, asks you how to create a condominium in
Minnesota. You advise your client to - Answer-record a declaration.
Terry uses a wheelchair and is looking at a one-bedroom apartment, which is not
handicap accessible. Terry would like the unit modified to make it more accessible.
, Which of the following statements regarding Terry's request is TRUE? - Answer-The
landlord must allow the tenant to make modifications at the tenant's expense.
When an individual makes application for a residential rental unit, she should be ready
to provide the property manager with all of the following information EXCEPT
A) her date of birth.
B) her Social Security number.
C) fitness club information.
D) information on bankruptcies and evictions. - Answer-D) fitness club information.
Which of the following is considered a limited common element?
A) Roof on the condominium building
B) Elevator
C) Guest parking lot
D) Patio - Answer-D) Patio
All of the following would be considered common elements EXCEPT
A) the parking area.
B) the unit occupied by the owner.
C) the structure.
D) the swimming pool. - Answer-B) the unit occupied by the owner.
Which of the following would be a good reason for an owner to consider leasing rather
than selling?
A) The owner avoids the tax consequences of selling a home.
B) The owner has little or no equity or owes more than the property is worth.
C) Rental income will help the owner qualify for a mortgage.
D) Being a landlord is easier than selling a property. - Answer-B) The owner has little or
no equity or owes more than the property is worth.
Which of these resources would a property manager use to conduct a competitive rental
market analysis (CRMA)?
A) Tax records
B) Published transactions
C) Multiple listing service records
D) All of these - Answer-D) All of these
An agent has entered into his first lease listing with a property owner. The agent must
be prepared to represent the owner and perform all of the following services EXCEPT -
Answer-signing the lease.
In a common interest community, the common elements are defined as - Answer-
portions of the property designated for common ownership.
