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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A) Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
B) Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
C) Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
D) Confirm the buyer's intended use adheres to all municipal zoning requirements

2. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.
B) ESAs are regulated under the Canadian Environmental Protection Act.
C) Every new commercial property must undergo an ESA prior to construction.
D) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.

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

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

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

5. Which of the following is NOT determined by zoning bylaws?

A) Lot dimensions and parking requirements
B) The types of buildings that are permitted in a location, their height, and how they may be used
C) The amount of rent a building may generate
D) Where buildings and other structures may be located

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