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A property manager discovers that a vendor has been submitting inflated invoices for maintenance work. According to IREM ethical standards, what is the property manager's FIRST responsibility?

Report the vendor to local law enforcement

Notify the property owner and take appropriate corrective action

Confront the vendor privately and request a refund

Document the findings but wait for owner direction

to track

2026 Statistics

Key Facts: CPM Exam

150

Exam Questions

Open-book

70%

Passing Score

IREM

$309

Exam Fee (Member)

IREM

8 courses

Program Requirements

Plus ethics course

36 mo

Experience Required

IREM

12-18 mo

Typical Completion

IREM

The CPM exam has 150 open-book multiple-choice questions with a 70% passing score. Six domains: Finance & Budgeting (20%), Asset Management & Valuation (20%), Marketing & Leasing (15%), Human Resources & Leadership (15%), Maintenance & Operations (15%), and Ethics & Legal (15%). Requires 36 months qualifying experience, 8 IREM courses + ethics course, and MPSA completion. Total program cost: $5,000-$8,000+.

Sample CPM Practice Questions

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1A property manager discovers that a vendor has been submitting inflated invoices for maintenance work. According to IREM ethical standards, what is the property manager's FIRST responsibility?

A.Report the vendor to local law enforcement

B.Notify the property owner and take appropriate corrective action

C.Confront the vendor privately and request a refund

D.Document the findings but wait for owner direction

Explanation: Under IREM's ethical framework, a property manager's primary duty is to protect the owner's interests. The first responsibility when discovering financial irregularities is to promptly notify the property owner and work with them to determine appropriate corrective action. While documentation is important, waiting for direction (option D) is passive when active issues exist. Direct confrontation without owner knowledge (option C) could expose the manager to liability, and law enforcement (option A) may be premature before the owner is informed.

2The IREM "Five Question Method" for ethical decision-making includes all of the following EXCEPT:

A.Is it legal?

B.Is it profitable?

C.Does it comply with company policy?

D.How would it look if made public?

Explanation: The IREM Five Question Method focuses on ethical considerations, not financial gain. The five questions are: (1) Is it legal? (2) Does it comply with company policy? (3) Is it consistent with the Code of Professional Ethics? (4) How would it look if made public? (5) Does it feel right? While profitability is important in property management, it is not part of this specific ethical framework. The method helps managers make decisions that maintain professional integrity.

3A CPM candidate is offered a gift valued at $500 from a contractor seeking a long-term service agreement with the property. According to IREM ethical guidelines, the candidate should:

A.Accept the gift graciously to maintain the business relationship

B.Accept the gift but disclose it to the property owner

C.Decline the gift to avoid any appearance of impropriety

D.Accept the gift and share it equally with the property management team

Explanation: IREM's Code of Professional Ethics prohibits accepting gifts that could influence or appear to influence professional judgment. Property managers must avoid conflicts of interest and maintain impartiality when selecting vendors. Accepting a substantial gift creates an appearance of favoritism that could compromise the manager's ability to make objective decisions in the owner's best interest. The proper response is to politely decline the gift while explaining that professional standards prohibit such acceptance.

4When resolving an ethics violation allegation within a property management firm, which approach best aligns with IREM standards?

A.Immediate termination of the accused employee

B.Internal investigation with due process and proportionate response

C.Public disclosure of the allegations to maintain transparency

D.Transfer of the employee to a different property

Explanation: IREM emphasizes fair and thorough resolution of ethics violations. This includes conducting an internal investigation that follows due process, allowing the accused to respond to allegations, and implementing proportionate disciplinary measures based on the severity of the violation. Immediate termination without investigation could violate employment laws and fairness principles. Public disclosure (option C) should be limited to what is necessary and appropriate. Transferring the problem (option D) does not address the underlying ethical issue.

5Under the National Association of REALTORS® Code of Ethics, Article 1 requires that REALTORS®:

A.Cooperate with other brokers except when it is not in the client's interest

B.Place the interests of their clients above their own interests

C.Disclose all known defects in a property to potential buyers

D.Maintain errors and omissions insurance at all times

Explanation: NAR Code of Ethics Article 1 states: "When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client." This fundamental duty of loyalty requires placing client interests above the REALTOR®'s own interests. While disclosure of defects (option C) is required under other articles, and cooperation (option A) relates to different articles, Article 1 specifically establishes the primary fiduciary duty of client loyalty.

6A property manager learns confidential information about a tenant's medical condition during a routine inspection. According to professional ethics standards, the manager should:

A.Share the information with the property owner as material information

B.Maintain confidentiality unless disclosure is legally required or authorized

C.Inform other tenants who may be affected by the medical condition

D.Document the condition in the tenant's file for future reference

Explanation: Property managers have an ethical obligation to maintain tenant confidentiality. Medical information is particularly sensitive and protected under various privacy laws including HIPAA in certain contexts. The proper course is to maintain strict confidentiality unless there is a legal requirement to disclose or the tenant provides written authorization. Even the property owner does not have an automatic right to confidential tenant medical information unless it directly affects the property or lease terms.

7Which of the following scenarios represents a conflict of interest that violates IREM ethical standards?

A.A property manager refers tenants to an insurance broker who pays the manager a referral fee

B.A property manager hires a family member's landscaping company at market rates after competitive bidding

C.A property manager accepts a nominal holiday gift basket worth $25 from a vendor

D.A property manager discloses their ownership interest in a vendor company to the property owner

Explanation: Accepting undisclosed referral fees violates IREM ethical standards because it creates a conflict of interest—the manager may recommend services based on personal financial gain rather than the owner's best interest. If the manager receives referral compensation, it should be disclosed to the owner and preferably passed through to reduce owner costs. Option B is acceptable with competitive bidding, option C is acceptable as a nominal gift, and option D shows proper disclosure of a potential conflict.

8The IREM Code of Professional Ethics requires CPMs to maintain competence through:

A.Completing 50 hours of continuing education annually

B.Staying informed about changes in laws, regulations, and industry practices

C.Attending at least one IREM chapter meeting per month

D.Obtaining additional real estate licenses in adjacent states

Explanation: The IREM Code requires members to maintain and improve professional competence, which includes staying informed about changes in laws, regulations, and industry practices that affect property management. While IREM has continuing education requirements for CPM recertification (not 50 hours annually as stated in option A), the ethical obligation is broader—it requires proactive efforts to remain knowledgeable and competent. There are no specific requirements for chapter meeting attendance (option C) or multi-state licensing (option D) in the Code.

9A property manager discovers that a competitor has been spreading false rumors about their property's safety record. Under IREM ethical standards, the manager should:

A.Spread equally damaging rumors about the competitor

B.File a lawsuit for defamation immediately

C.Address the false statements professionally and factually without retaliation

D.Ignore the rumors as they will eventually subside

Explanation: IREM ethics require professionals to maintain high standards of conduct even when dealing with competitors who engage in unethical behavior. The appropriate response is to address false statements professionally—correcting misinformation with facts without engaging in retaliatory actions. Spreading rumors (option A) violates ethical standards against disparaging competitors. Immediate litigation (option B) may be premature and expensive. Ignoring potentially damaging false statements (option D) may not protect the property's reputation or tenant relations.

10When advertising a vacancy, a property manager should ensure that all statements are:

A.Technically true but may emphasize positive aspects

B.Materially accurate and not misleading to reasonable consumers

C.Approved by legal counsel before publication

D.Consistent with competitor advertising in the market

Explanation: Ethical advertising standards require that all statements be materially accurate and not misleading to reasonable consumers. This standard prohibits both outright falsehoods and technically true statements presented in a way that creates false impressions. While legal review (option C) can be helpful, it is not required for all advertising. Consistency with competitors (option D) does not establish ethical compliance—if competitors make misleading claims, the manager should not follow suit.

About the CPM Exam

The CPM (Certified Property Manager) certification exam from IREM validates expertise in property management including finance, asset management, marketing, leasing, human resources, maintenance operations, and ethics. The exam is open-book with 150 questions and covers 8 IREM courses worth of material.

Questions

150 scored questions

Time Limit

Not strictly timed (open-book)

Passing Score

70%

Exam Fee

$309 (member price) (Institute of Real Estate Management (IREM))

CPM Exam Content Outline

20%

Finance & Budgeting

Budgeting, cash flow, financial reporting, accrual vs. cash accounting, budget variance analysis

20%

Asset Management & Valuation

Financing and loan analysis, performance and valuation, asset analysis of investment real estate

15%

Marketing & Leasing

Leasing strategies, tenant retention, market analysis, and marketing plans

15%

Human Resources & Leadership

Building and leading property management teams, HR policies, training, performance management

15%

Maintenance & Operations

Maintenance operations, property risk management, emergency preparedness, capital planning

15%

Ethics & Legal

IREM ethics standards, fair housing, landlord-tenant law, risk management, legal compliance

How to Pass the CPM Exam

What You Need to Know

Passing score: 70%
Exam length: 150 questions
Time limit: Not strictly timed (open-book)
Exam fee: $309 (member price)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CPM Study Tips from Top Performers

1Focus on Finance & Budgeting (20%) and Asset Management (20%) — they make up 40% of the exam combined

2Master financial calculations: NOI, cap rate, cash-on-cash return, DCR, and break-even analysis

3Know the HP10BII financial calculator operations — you must bring one to the exam

4Study IREM ethics standards and fair housing law for the Ethics & Legal domain (15%)

5Review all 8 IREM course materials — the exam draws from the entire curriculum

6Since the exam is open-book, organize your materials and know where to find key formulas and concepts

Frequently Asked Questions

What is the CPM certification?

CPM (Certified Property Manager) is the premier property management certification from IREM (Institute of Real Estate Management). It validates expertise in finance, asset management, marketing, leasing, operations, and ethics for investment real estate management. CPM holders manage more than $500 billion in real estate assets.

How many questions are on the CPM exam?

The CPM exam has 150 open-book multiple-choice questions with a 70% passing score. The exam is administered in-person at scheduled IREM events. You must bring a laptop and HP10BII financial calculator.

What are the prerequisites for the CPM certification?

You need 36 months of qualifying real estate management experience (managing a minimum portfolio and performing 19 of 36 management functions), completion of 8 IREM courses plus ETH800 ethics course, and a Management Plan Skills Assessment (MPSA).

How long does it take to earn the CPM?

Most candidates take 12-18 months to complete the full CPM program including coursework, MPSA, and exam preparation. The program requires 200+ total hours. A Fast Track is available for holders of CCIM, CFM, CSM, PCAM, RPA, CRRP, or SIOR.

How should I prepare for the CPM exam?

The exam covers all 8 IREM courses. Focus on Finance/Budgeting and Asset Management (40% combined). Use the CPM Exam Prep Tutorial, review all course materials, and complete 200+ practice questions. Since it is open-book, focus on knowing where to find information quickly.