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Humber College Exam 4: Invigilated Theory Sample Questions:

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

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

2. What is the best indicator of a strong office market?

A) The number of free months given to new and renewing tenants by landlords in the office marketplace
B) When tenants have lots of options because of the amount of available space at favorable rates
C) Low rental rates and many concessions
D) The absorption rate, net absorption rate, and rising rental rates

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

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

5. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Fitting rooms
B) Kitchens/lunchrooms
C) Storage
D) Boardrooms, private offices, and workstations

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