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Humber College Exam 4: Invigilated Theory Sample Questions:

1. When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A) Good transportation and distribution corridors do not matter to industrial investors and their tenants.
B) Industrial properties have a lower capital gains tax at disposition.
C) Industrial properties have a number of large, credit-worthy tenants and long-term leases.
D) Higher mortgage interest rates will provide a better return on investment.

2. 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

3. A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
B) A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
C) The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
D) The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.

4. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Access to raw materials used in the region
B) Amount of advertising and publicity
C) Price trend for detached homes in nearby neighborhoods
D) Proximity to museums and historical sites

5. Many industrial users install one or more cranes on their properties to move heavy items. Which type of industrial crane has an arm attached at an angle to a rotating mast that permits 360-degree swiveling around that mast?

A) Bridge crane
B) Gantry crane
C) Jib crane
D) Overhead crane

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