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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A) The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
B) The municipality will take the number of available parking spaces and divide it by the property's net leasable area.
C) The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.
D) The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.

2. When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A) The farm is sold to a corporation and the HST is included in the selling price.
B) The farm has been used for personal use.
C) The farmer sells the farm to a relative.
D) The farmer uses a smaller portion of the farm for a residence.

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

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

4. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A) Surrounding uses
B) Demographics
C) Financial health of the company
D) Traffic counts

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) Gross lease
C) Triple net lease
D) Percentage lease

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