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Humber College Exam 4: Invigilated Theory Sample Questions:

1. While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?

A) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
B) The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.
C) The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.
D) The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.

2. A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?

A) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.
B) The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
C) The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.
D) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.

3. A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

A) The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.
B) The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.
C) The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.
D) The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.

4. Which of the following statements about economic development offices is NOT correct?

A) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
B) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
C) Economic development offices provide background information on local, provincial, and federal research and development incentives.
D) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

5. Which of the following is a reason why an owner might consider redeveloping an industrial property?

A) A similar building can be bought at a low price.
B) The existing building no longer provides the highest and best use of the site.
C) A redevelopment will seriously disrupt the current operation.
D) The cost of relocating is low.

Solutions: