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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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

2. 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.

3. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
B) The Board can conduct hearings that are heard by a minimum of five board members.
C) The Board can dismiss complaints if the disturbances are the result of normal farm practices.
D) The Board can order farmers to modify practices for consistency with normal farm practices.

4. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
B) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
C) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
D) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.

5. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to obtain the necessary mortgage amount
B) A clause to ensure the truck parking spaces and turning radius are sufficient
C) A clause to check the condition of the trucks and vans
D) A clause to test the quality of the underground water source

Solutions: