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Humber College Exam 4: Invigilated Theory Sample Questions:

1. When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A) What is the construction cost of the building?
B) Is the ownership of the building a corporation or a partnership?
C) Is inventory included in the sale of this business?
D) Is there any easement on the property?

2. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.
B) A conditional time period for verifying the soil condition or type that is five days in length.
C) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
D) A conditional time period for a property inspection that is 30 business days in length.

3. Which of the following is a characteristic of main street retail?

A) Must be located in a small, older community
B) Structure size typically ranges from 100,000 to 130,000 square feet
C) Consists of newer, free-standing buildings only
D) Comprises a blend of old and new stores

4. A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

A) The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
B) The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.
C) The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
D) The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.

5. A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A) Pre-cast panels are more durable than tilt-up panels.
B) Pre-cast panels cost much more than tilt-up panels.
C) Both tilt-up panels and pre-cast panels are formed off-site.
D) Both tilt-up panels and pre-cast panels can lower construction costs.

Solutions: