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Property management Practice Questions

47 questions on property management, each with an explanation. This area covers leases, landlord-tenant duties, management agreements, habitability.

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Property management

With two years left on a five-year lease, a tenant transfers the entire remaining term to a new occupant and keeps no right of return. What has occurred, and who remains liable?

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10 sample property management questions, answered

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  1. 1. With two years left on a five-year lease, a tenant transfers the entire remaining term to a new occupant and keeps no right of return. What has occurred, and who remains liable?

    • AA novation that automatically substitutes the new occupant
    • BA sublease, with the original tenant still liable to the landlord
    • CAn assignment that releases the original tenant entirely
    • DAn assignment, with the original tenant still liablecorrect

    Why: Transferring the whole remaining term with no reversion is an assignment, and the assignor remains liable on the lease contract unless the landlord grants a release. A sublease would leave the original tenant holding a reversion for part of the term.

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  2. 2. A written lease runs from January 1 through December 31 and contains no renewal clause. Which leasehold estate does the tenant hold?

    • AEstate at sufferance
    • BPeriodic tenancy
    • CEstate at will
    • DEstate for yearscorrect

    Why: A lease with a fixed beginning and a fixed ending date creates an estate for years, which expires on its own without notice from either party. A periodic tenancy has no stated end date and renews until someone gives notice.

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  3. 3. Under a triple net lease, the tenant typically pays:

    • ARent plus utilities
    • BRent plus taxes, insurance and maintenancecorrect
    • CA percentage of gross sales
    • DRent only

    Why: The three "nets" are property taxes, insurance and maintenance, all on top of base rent. A gross lease puts those on the landlord; a percentage lease keys rent to sales.

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  4. 4. A five-year lease provides that rent increases by 200 dollars on each anniversary date. This is best described as:

    • AA graduated leasecorrect
    • BAn index lease
    • CA percentage lease
    • DA net lease

    Why: Rent steps written into the lease at stated intervals create a graduated lease, since the amounts are known in advance. An index lease would leave the increase to a published indicator such as a cost of living measure.

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  5. 5. A stadium sells a season parking pass allowing a car in any open space on event days. The pass creates:

    • AA licensecorrect
    • BA ground lease
    • CAn estate for years
    • DA periodic tenancy

    Why: A revocable personal privilege to use land, with no exclusive possession and no specific space, is a license rather than a leasehold. A leasehold would give exclusive possession of a described area for a stated term.

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  6. 6. A tenant transfers the remaining 6 months of a 12-month lease to a third party, retaining no interest. This is a(n):

    • ANovation
    • BSurrender
    • CSublease
    • DAssignmentcorrect

    Why: Transferring the ENTIRE remaining interest is an assignment. Keeping any reversionary interest — even a single day — makes it a sublease, and the original tenant stays liable in both cases unless released.

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  7. 7. A lease contains a renewal option requiring notice six months before expiration. The tenant wants to renew one month before expiration. What should be examined?

    • AWhether interest in renewal replaces the required notice
    • BWhether the option's exercise requirements were met or another agreement is possiblecorrect
    • CWhether continued possession necessarily exercises the option on time
    • DOnly whether rent was paid during the original term

    Why: An option requires compliance with its stated conditions. Late interest in renewal should not be confused with timely exercise of the contractual right.

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  8. 8. Hoping long-time tenants will not renew so units can be upgraded, an owner tells them minority families are moving in and the area is going downhill. This conduct is:

    • ABlockbusting, prohibited by federal fair housing lawcorrect
    • BLegal, because no sale is involved
    • CLegal, because the statements are opinions
    • DSteering, but lawful for rentals

    Why: Using representations about the entry of a protected class to induce people to sell, rent or move out is blockbusting, and the prohibition covers rental transactions as fully as sales. The absence of a sale is no defense, and framing the remarks as opinion does not help.

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  9. 9. A tenant assigns a lease, but the landlord does not release the original tenant. What should the original tenant avoid assuming?

    • AThat the lease's assignment clause matters
    • BThat consent may be required
    • CThat the incoming tenant can receive lease rights
    • DThat assignment alone eliminates every remaining obligationcorrect

    Why: Assignment and release are different issues. Remaining liability depends on the lease, consent documents and applicable law.

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  10. 10. A shopping center tenant pays a minimum monthly rent plus six percent of gross sales above a stated breakpoint. This is a:

    • AGround lease
    • BGross lease
    • CPercentage leasecorrect
    • DIndex lease

    Why: Rent tied to sales volume above a breakpoint, with a minimum base rent, is a percentage lease and is standard in retail centers. An index lease adjusts rent by a published economic measure instead of by sales.

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Vocabulary this area tests

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Weightings come directly from the test provider’s published examination content outline for the national portion of the salesperson exam. PSI publishes percentages only; Pearson VUE publishes scored-item counts only. PSI and Pearson VUE use different content taxonomies, so their weightings are not interchangeable and should not be averaged. Check which provider administers your state’s exam, and confirm against the current candidate handbook before you study. Outlines are revised periodically and older versions stay in circulation online. View the PSI outline.