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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

A) An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
B) A consultant in a financial institution
C) A zoning specialist in the city's planning department
D) A legal consultant who specializes in evicting residential tenants

2. A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

A) The salesperson is responsible for negotiating the tenant's stock delivery window.
B) Should a delivery truck arrive during an emergency, the property manager must be available.
C) The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
D) Stock delivery cannot be restricted in a commercial agreement to lease.

3. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Pass the transaction to the broker of record so that the broker will take care of it.
B) Terminate the transaction and disengage from it.
C) Conduct an analysis of why the transaction will not be carried out.
D) Obtain the remuneration owed.

4. A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

A) It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.
B) It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.
C) It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.
D) It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant's usable area.

5. Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A) A design-build arrangement is commonly associated with a seller's market.
B) A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.
C) A design-build arrangement is a sale/leaseback arrangement.
D) A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.

Solutions: