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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A) Repair the damage and deduct the cost from the rent.
B) Terminate the lease and start looking for a new space.
C) Contact a lawyer and immediately start a legal action for damages.
D) Meet with the property manager, review the lease, and determine a course of action.

2. 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 a property inspection that is 30 business 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 existence of services such as sewage, water, and electricity that is 30 days in length.
D) A conditional time period for verifying the soil condition or type that is five days in length.

3. Finish the sentence: The Employment Standards Act:

A) Protects the rights of workers of a business that is being sold.
B) Regulates trade names.
C) Specifies the terms of a business partnership agreement.
D) Regulates matters involving ownership of a business.

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

5. 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 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.
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 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.
D) 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.

Solutions: