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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

A) The office building next door has an overflow parking lot.
B) There is a residential neighborhood and playground nearby.
C) The neighboring property includes a restaurant, a dental clinic, and a law office.
D) There is vacant land nearby with a small pond with discolored standing water.

2. When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A) Industrial properties have a number of large, credit-worthy tenants and long-term leases.
B) Industrial properties have a lower capital gains tax at disposition.
C) Higher mortgage interest rates will provide a better return on investment.
D) Good transportation and distribution corridors do not matter to industrial investors and their tenants.

3. 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 their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
B) The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
C) 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.
D) The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.

4. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
B) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
C) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.
D) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.

5. The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

A) Reviewing whether the technical components have been recently replaced or upgraded.
B) Contacting contractors for quotes for repairing or replacing equipment.
C) Ensuring inspections are being carried out as required.
D) Learning what types of equipment are in the building and having a general understanding of their age and condition.

Solutions: