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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?

A) Some trucks may need to park on the property overnight.
B) Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
C) Businesses need to transport materials to and from the site.
D) Incoming trucks could have difficulty if there is a lack of on-site trailer storage.

2. Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?

A) The total area measurements
B) The maximum floor load of every unit
C) The total remuneration payable for a 20-year lease
D) The number of sprinklers required in every unit

3. When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A) Is the ownership of the building a corporation or a partnership?
B) Is there any easement on the property?
C) Is inventory included in the sale of this business?
D) What is the construction cost of the building?

4. A salesperson is representing a buyer client in the purchase of a fully tenanted mixed-use building. The agreement of purchase and sale will be in the name of a corporation owned by the buyer and several other shareholders. Which of the following statements is correct regarding the signing of this agreement of purchase and sale?

A) The buyer must sign and date below the printed name of the corporation.
B) The general partner of the company must sign and date below the printed name of the limited company.
C) A major shareholder of the company must sign and date over their printed name.
D) An authorized signing officer of the company must sign and date over the words: "I haveauthority to bind the corporation" and below the printed registered name.

5. 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 obtaining an approval for a zoning change that is seven business days in length.
B) A conditional time period for verifying the soil condition or type that is five 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 a property inspection that is 30 business days in length.

Solutions: