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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Fitting rooms
B) Storage
C) Kitchens/lunchrooms
D) Boardrooms, private offices, and workstations

2. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A) The salesperson must verify the rates and terms of lease for the property.
B) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
C) The salesperson must verify the zoning information for the industrial property.
D) The salesperson must verify the previous tenant's lease rates and terms.

3. A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

A) The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
B) The salesperson should explain that a better return on investment will be achieved with rising interest rates.
C) The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
D) The salesperson should explain that the client should always consider being a short-term investor.

4. A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?

A) Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
B) Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
C) Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
D) Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.

5. When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A) Fixed equipment
B) Barns and sheds
C) Residence
D) Goodwill

Solutions: