Illinois Real Estate Practice Exam

What does a property manager's duties typically include?

1. Giving a history of the title, including recorded encumbrances against the property

2. Investing profits of the property on behalf of the client

3. Providing for a specified rent increase at set future dates

4. Suspending all real estate activities

The correct answer is: Investing profits of the property on behalf of the client

The duties of a property manager typically encompass a range of responsibilities, and investing profits is one aspect that can be included, particularly in the context where a property manager may manage funds to maximize returns for the property owner. This includes overseeing the financial operations of a property, managing income through rent collection, and making strategic decisions about reinvestment into the property or other ventures to enhance profitability. Providing for a specified rent increase at set future dates is also a common task for property managers and could be a valid inclusion, but this operation usually must be in accordance with state regulations and the lease agreements made with tenants rather than an automatic duty inherent to the role. Giving a history of the title, including recorded encumbrances against the property, is typically the responsibility of title companies or real estate attorneys rather than property managers. Suspending all real estate activities would contradict the primary function of a property manager, who is there to ensure ongoing operation and management of the property. Therefore, the role inherently involves active participation in managing property, making option B a relevant component of their duties.