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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A) An opinion from the seller's lawyer
B) A sketch of the seller's floor layout
C) An opinion from the property manager
D) A surveyor's certificate for the unit

2. The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:

A) Liabilities
B) Net operating income
C) Shareholder's equity
D) Assets

3. A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

A) The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.
B) The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.
C) The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.
D) The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.

4. Which of the following is a characteristic of main street retail?

A) Comprises a blend of old and new stores
B) Must be located in a small, older community
C) Consists of newer, free-standing buildings only
D) Structure size typically ranges from 100,000 to 130,000 square feet

5. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to check the condition of the trucks and vans
B) A clause to test the quality of the underground water source
C) A clause to obtain the necessary mortgage amount
D) A clause to ensure the truck parking spaces and turning radius are sufficient

Solutions: