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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 any amount.
C) The rent increase cannot be higher than the guideline set by the government.
D) The rent increase can be challenged by the Landlord and Tenant Board.

2. A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

A) The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.
B) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.
C) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.
D) The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.

3. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A) Use a laser measuring tool to take the measurements
B) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
C) Use the R/U factor to calculate the figures
D) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

4. A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

A) The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
B) The salesperson should explain that a better return on investment will be achieved with rising interest rates.
C) The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
D) The salesperson should explain that the client should always consider being a short-term investor.

5. Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A) An Ontario Land Surveyor can be hired to measure the space.
B) An architect can be hired to measure the space.
C) The original plans should be used to determine the size of a unit.
D) Space should be measured in accordance with BOMA standards.

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