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

2. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
B) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
C) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
D) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.

3. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
B) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
C) The landlord and tenant may agree to split the deposit.
D) The tenant can have the deposit back without signing a mutual release as it is not their fault.

4. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Amount of advertising and publicity
B) Access to raw materials used in the region
C) Proximity to museums and historical sites
D) Price trend for detached homes in nearby neighborhoods

5. 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.

Solutions: