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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. A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

A) The rent increase cannot be more than the Consumer Price Index (CPI).
B) The rent increase can be challenged by the Landlord and Tenant Board.
C) The rent increase cannot be higher than the guideline set by the government.
D) The rent increase can be any amount.


3. 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) Requesting an RSC is mandatory in all real estate transactions.
D) It contains records pertaining to a property's financial condition.


4. Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?

A) The number of sprinklers required in every unit
B) The total area measurements
C) The total remuneration payable for a 20-year lease
D) The maximum floor load of every unit


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


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: C
Question # 5
Answer: A

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