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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?

A) Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.
B) Ensure there is parking and repair space available for commercial trucks.
C) Confirm that the contract of the condominium property management company has been renewed for at least 10 years.
D) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.

2. What is the best indicator of a strong office market?

A) The absorption rate, net absorption rate, and rising rental rates
B) The number of free months given to new and renewing tenants by landlords in the office marketplace
C) When tenants have lots of options because of the amount of available space at favorable rates
D) Low rental rates and many concessions

3. A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A) The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
B) The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
C) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
D) The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

4. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Acknowledgment
B) Notice of fulfillment
C) Waiver
D) Mutual release

5. Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A) A stable internet connection
B) A high voltage and ampere supply
C) A proper ventilation system
D) Sufficient lighting

Solutions: