15 free questions from the Cinna RE leasing and property management bank (103 in the app). Tap an answer to check it. The rationale opens right away.
Which type of insurance protects a property owner against financial loss when a tenant or visitor is injured on the property and the owner is found legally responsible?
Answer: A. Liability insurance
Liability insurance covers claims arising from bodily injury or property damage to others for which the owner is legally liable, such as a slip-and-fall on the premises.
When a property manager evaluates whether to make a repair in-house or hire a contractor and always seeks competitive bids for major work, the manager is fulfilling the duty of:
Answer: B. Care (skill and diligence)
Exercising reasonable skill, judgment, and diligence, such as obtaining competitive bids to get the best value for the owner, reflects the fiduciary duty of care.
After a tenant reports code violations to the city, the landlord serves a notice doubling the rent at renewal. This is most likely:
Answer: B. Retaliatory conduct prohibited by landlord-tenant law
Adverse action shortly after a tenant exercises legal rights (code complaints, organizing) is presumed RETALIATION in most states and is unlawful — independent of rent-control rules.
A tenant with 8 months left transfers the full remaining term to a coworker, who pays rent directly to the landlord. The original tenant has made:
Answer: B. An assignment and remains liable unless released
Transferring the ENTIRE remainder = ASSIGNMENT. The original tenant stays secondarily liable unless the landlord grants a release/novation. (Consent requirements depend on the lease — the question states no such clause.)
In a typical net lease for office or industrial space, who is generally responsible for major structural repairs to the building?
Answer: B. The landlord, unless the lease is an absolute net (bondable) lease shifting that risk to the tenant
In most net leases the landlord keeps responsibility for major structural elements; only an absolute (bondable) net lease shifts virtually all costs, including structure, to the tenant.
A property management agreement creates which type of agency relationship between the owner and the property manager?
Answer: A. A general agency, because the manager handles ongoing, recurring activities on the owner's behalf
A property manager is typically a general agent because the management agreement authorizes a continuous range of acts (leasing, collecting rent, maintenance) on the owner's behalf, unlike a special agent who handles one transaction.
Purchasing an insurance policy to protect against a possible loss is an example of which risk-management strategy?
Answer: B. Risk transfer
Buying insurance transfers the financial consequences of a loss to the insurer, which is the risk-transfer technique.
A tenant whose lease has expired remains in the property without the landlord's permission and against the landlord's wishes. This situation is called a:
Answer: C. Tenancy at sufferance
A tenancy at sufferance occurs when a tenant who lawfully took possession holds over after the lease ends without the landlord's consent (a holdover tenant).
A retail lease is $2,500/month base plus 5% of annual gross sales above the natural breakpoint. With sales of $850,000, total annual rent is:
Answer: A. $42,500
Base = $2,500 × 12 = $30,000/yr. Natural breakpoint = 30,000 ÷ 0.05 = $600,000 in sales. Overage rent = (850,000 − 600,000) × 5% = $12,500. Total = $30,000 + $12,500 = $42,500.
A landlord changes the locks and removes a delinquent tenant's belongings without going to court. This conduct is BEST described as:
Answer: B. An unlawful self-help eviction
Self-help measures such as lockouts and removing possessions without a court order are generally illegal; landlords must use the judicial eviction process.
A tenant has a documented service animal. The landlord enforces a strict no-pets policy. Under fair housing law, the landlord should:
Answer: C. Make a reasonable accommodation and allow the service animal
A service or assistance animal is not a pet under fair housing law; allowing it is a reasonable accommodation, and the landlord generally may not charge a pet deposit for it.
A tenant's deposit is $2,000. The landlord properly deducts $350 for damages and $600 for unpaid rent. How much must be returned to the tenant?
Answer: A. $1,050
Total proper deductions are $350 + $600 = $950, so $2,000 - $950 = $1,050 must be returned to the tenant.
In a percentage lease, the dollar amount of sales a tenant must reach before the percentage rent begins to apply is known as the:
Answer: B. Breakpoint (sales breakpoint)
The breakpoint is the sales level above which the agreed percentage of gross sales is added to the base rent in a percentage lease.
A month-to-month tenancy that automatically renews until proper notice is given is an example of which leasehold estate?
Answer: B. Periodic tenancy
A periodic tenancy (such as month-to-month) automatically renews for successive periods until either party gives proper advance notice to terminate.
Because fair-housing law applies to rentals, a landlord generally may NOT refuse to rent because the applicant:
Answer: A. Has children (familial status)
Refusing tenants because they have children violates the familial-status protection; landlords may still screen on legitimate financial criteria.
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