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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 drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:

A) Create a business plan
B) Estimate time frames required for due diligence and other offer conditions
C) Gather, organize, and verify all pertinent information
D) Identify third-party professionals

3. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
B) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
C) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
D) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.

4. A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

A) The salesperson should advise the buyer to consider the size of their products.
B) The salesperson should advise the buyer to consider the price of their products.
C) The salesperson should advise the buyer to consider their business's predicted monthly inventory.
D) The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.

5. The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A) Depreciation
B) Operations
C) Repairs
D) Supervision

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