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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

A) The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
B) If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
C) If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
D) The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.

2. A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

A) It is not a material fact; thus, it is a formality for the buyer to get it.
B) With other documents, it will inform the buyer of any legal issues attached to the title.
C) It contains records pertaining to a property's financial condition.
D) Requesting an RSC is mandatory in all real estate transactions.

3. Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

A) The BOMA standards provide methods of measuring office buildings only.
B) The BOMA standards are complex.
C) The BOMA standards provide procedures to measure rentable areas only.
D) The BOMA standards provide methods of measuring industrial buildings only.

4. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A) Terminate the lease and start looking for a new space.
B) Meet with the property manager, review the lease, and determine a course of action.
C) Contact a lawyer and immediately start a legal action for damages.
D) Repair the damage and deduct the cost from the rent.

5. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Net lease
B) Triple net lease
C) Percentage lease
D) Gross lease

Solutions: