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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A) The salesperson must verify the rates and terms of lease for the property.
B) The salesperson must verify the zoning information for the industrial property.
C) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
D) The salesperson must verify the previous tenant's lease rates and terms.

2. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
B) An ESA is not required if the buyer is purchasing the industrial property for their own use.
C) All new commercial properties must undergo an ESA before construction begins.
D) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.

3. A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

A) A zoning specialist in the city's planning department
B) A legal consultant who specializes in evicting residential tenants
C) An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
D) A consultant in a financial institution

4. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Net lease
B) Triple net lease
C) Percentage lease
D) Gross lease

5. Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A) A design-build arrangement is commonly associated with a seller's market.
B) A design-build arrangement is a sale/leaseback arrangement.
C) A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.
D) A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.

Solutions: