← Property Management – Real Estate Broker Exam

Free Property Management – Real Estate Broker Exam Practice Test (2026)

200 questions · 240 min · 75% to pass

200 Questions · 240 Minutes · 75% to Pass

Question 1 of 5

Sample Questions

Question 1

If a property management agreement is silent on a specific repair expense, what principle guides the manager's authority to spend owner funds?

Answer: The manager may only spend up to the authorized limit stated in the agreement; expenses beyond that threshold require explicit owner approval.

Question 2

What document establishes the legal relationship between a property owner and a property manager?

Answer: A property management agreement, which defines the scope of authority, duties, compensation, and duration of the manager's role as the owner's agent.

Question 3

What type of agency relationship is created when a property owner hires a property manager?

Answer: A general agency relationship, where the manager is authorized to handle a range of ongoing tasks on behalf of the owner.

Question 4

Which element in a property management agreement specifies what percentage or flat fee the manager earns for collecting rents?

Answer: The compensation clause, which details how and when the property manager is paid, typically as a percentage of collected rents.

Question 5

What is the primary purpose of an 'owner's reserve fund' established in a property management agreement?

Answer: To maintain a cash buffer that allows the property manager to cover routine operating expenses and minor repairs without seeking prior owner approval for each transaction.