First Attempt Guaranteed Success in CAP-2101-20 Exam 2025
Real CAP-2101-20 Exam Questions are the Best Preparation Material
NEW QUESTION # 71
A building owner and general contractor sign a contract to build an addition to a retail shopping center. Both parties agree to include a provision that specifies an amount of money to be paid by one party that is in material breach to the other party. This provision is often used when the sum of damages is difficult to predict in advance of contract execution. What is this provision called?
- A. Consequential damages
- B. Expectation damages
- C. Liquidated damages
- D. Restitution
Answer: C
Explanation:
Liquidated damagesare pre-determined amounts specified in a contract to be paid as compensation if one party breaches the agreement. They are commonly used when actual damages would be hard to quantify in advance, making them a proactive risk management tool in construction and service contracts.
NEW QUESTION # 72
A tenant in a multi-story, multi-tenant office building has requested dock access for furniture moving. Which item should the property manager request of the tenant's contractor before work begins?
- A. Certificate of insurance (COI)
- B. Performance bond
- C. Waiver of restoration
- D. Right of entry
Answer: A
Explanation:
ACertificate of Insurance (COI)verifies that the contractor has the necessary liability and workers' compensation coverage. This protects the property owner and other tenants in the event of damage or injury during the move, making it a standard requirement before allowing contractor access.
NEW QUESTION # 73
There are numerous existing programs that focus on sustainable practices. Which of the following would BEST be utilized in establishing a baseline for an accreditation project?
- A. Leadership in Energy and Environmental Design (LEED)
- B. Building Research Establishment Environmental Assessment Method (BREEAM)
- C. Environmental Protection Agency (EPA) Energy Star
- D. Global Real Estate Sustainability Board (GRESB)
Answer: A
Explanation:
Analysis:
* A. BREEAM- A comprehensive sustainability assessment method, butprimarily used in the UK.
* B. EPA Energy Star- Focuses onenergy performance, useful butnot comprehensivefor a full accreditation project baseline.
* C. GRESB- Measuresportfolio-levelsustainability performance, not individual project baselines.
* D. LEED-#A widely recognized framework forgreen building certification, withspecific baseline requirements and scoringsystems. Ideal for establishing a project baseline for accreditation.
NEW QUESTION # 74
A property management team was assigned a multi-tenant office building. The team wants to keep track of which suites on each floor are occupied and vacant. Which type of report shows where tenants are located throughout the building and which spaces are vacant?
- A. Floor plan
- B. Rent roll
- C. Tenant profile
- D. Stacking plan
Answer: D
NEW QUESTION # 75
The risk management process is designed to prevent a loss from occurring or to minimize the consequences of a loss after an incident has occurred.
Which of the following are the threePRIMARYclassifications of loss exposures?
- A. Liability losses, personnel losses and property losses
- B. Capital losses, operating losses and liability losses
- C. Insurance losses, lien losses and title losses
- D. Contract losses, personnel losses and force majeure losses
Answer: A
Explanation:
In risk management, the threeprimaryclassifications of loss exposures are:
* Liability losses- potential legal responsibility for harm caused to others.
* Personnel losses- related to injury, illness, or death of employees.
* Property losses- physical damage or loss of property.
These categories help organizations plan and implement effective loss control and risk mitigation strategies.
NEW QUESTION # 76
Which of the following entities isMOSTlikely to be omitted from a standard property insurance policy?
- A. Mortgagees
- B. The named insured
- C. The property manager
- D. Adjacent property owners
Answer: D
Explanation:
Astandard property insurance policytypically covers thenamed insured(the property owner),mortgagees, andproperty managersif they are added as additional insureds.Adjacent property ownersare less likely to be included in the policy unless specifically added, as they have no direct ownership or stake in the insured property.
NEW QUESTION # 77
An office building has closed following a hurricane. The building owner faces the risk of losing income until the building can reopen for normal operation. What type of loss exposure does this represent?
- A. Tenant loss
- B. Liability loss
- C. Indirect property loss
- D. Direct property loss
Answer: C
Explanation:
Indirect property lossrefers to financial losses resulting from an inability to use a property after a direct loss event (e.g., hurricane damage). In this case, theloss of incomedue to temporary closure represents an indirect loss, as the property itself may not be completely destroyed but its function is disrupted.
NEW QUESTION # 78
A tenant in a commercial building is considering moving to a competitor's property. Which of the following strategies would be most effective in encouraging the tenant to remain in the building?
- A. Improve the building's amenities and offer custom space improvements.
- B. Offer a rent reduction or financial incentive.
- C. Allow the tenant to sublease without any restrictions.
- D. Inform the tenant that no changes can be made to their lease terms.
Answer: A
NEW QUESTION # 79
Which of the following is required before a vendor invoice can be paid?
- A. Sufficient funds
- B. Property manager approval
- C. Purchase order
- D. Tenant satisfaction
Answer: B
Explanation:
Before a vendor invoice can be paid,property manager approvalis typically required to verify that the goods or services were delivered satisfactorily and that the invoice is accurate. This step ensures financial control and accountability in property management operations.
NEW QUESTION # 80
An incoming tenant wants to lease an existing vacant building and construct a new building that is virtually identical in size, interior layout, and exterior design to the existing structure. What is theBESTmethod for expedited project delivery of this new building?
- A. Construction management-at-risk
- B. Design-build
- C. Multiple prime contracts
- D. Design-bid-build
Answer: B
Explanation:
Thedesign-buildmethod is thebestoption for expedited project delivery because it combines both design and construction responsibilities under one contract. This streamlines the process and can lead to faster completion, especially when the new building is designed to mirror an existing structure.
NEW QUESTION # 81
In semi gross and net leases, a landlord implements an additional rent clause to recapture the increased cost of operating the building. What may be another reason for additional rent clause?
- A. Maintain the equity value of the base rent dollar.
- B. Ensure the property is well-maintained.
- C. Allow landlord to collect late fees.
- D. Hedge against inflation.
Answer: D
NEW QUESTION # 82
A property manager is tasked with reducing the energy consumption of a commercial building. Which of the following is the most effective first step in achieving this goal?
- A. Perform a comprehensive energy audit and implement cost-effective recommendations.
- B. Install solar panels on the roof without evaluating current energy use.
- C. Ask tenants to lower their use of electricity during peak hours.
- D. Increase the building's electricity usage to take advantage of economies of scale.
Answer: A
NEW QUESTION # 83
A real estate services company has just been hired to provide property management services for a high- rise office building. As the property manager assigned to the building, what report should be created that incorporates the owner's objectives into a plan to operate the property?
- A. Building commissioning report
- B. Pro forma
- C. Narrative appraisal report
- D. Asset management plan
Answer: D
NEW QUESTION # 84
Which of the following government agencies oversees the overland shipping of hazardous materials?
- A. Environmental Protection Agency (EPA)
- B. Department of Transportation (DOT)
- C. Department of Defense (DOD)
- D. Occupational Safety and Health Administration (OSHA)
Answer: B
Explanation:
TheDepartment of Transportation (DOT)is responsible for regulating the safe and secure transportation of hazardous materials by land, includingsetting standards for packaging, labeling, and routing. This oversight ensures public and environmental safety during the shipment of such materials.
NEW QUESTION # 85
A building owner is preparing space for a new tenant and has selected a preferred contractor. The property manager received an estimate for the construction, agreed on the overhead and profit, and settled on a construction cost. WhichBESTdescribes the process followed?
- A. Negotiated proposal
- B. Competitive bid
- C. Single source
- D. Request for proposal (RFP)
Answer: A
Explanation:
In anegotiated proposal, the contractor is selected without competitive bidding, and the project terms-such as overhead, profit, and final cost-are directly negotiated. This matches the scenario where a preferred contractor was chosen and cost details were agreed upon collaboratively.
NEW QUESTION # 86
A property manager is determining how much to lease their newly vacant space for. The manager has compiled data from neighboring buildings about their rents, vacancy, amenities, and absorption. The manager should use this data to create what kind of report?
- A. Logistics assessment
- B. Property assessment
- C. Market comparable
- D. Building analysis
Answer: C
Explanation:
Amarket comparablereport (or "comps") analyzes similar properties in the area to determine appropriate rental rates and leasing terms. By comparing rents, vacancy rates, amenities, and absorption, the property manager can make informed decisions based on local market conditions.
NEW QUESTION # 87
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