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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

A) The property's use doesn't comply with municipal zoning bylaws
B) A registered right of way that blocks the buyer's intended use of the property
C) The seller is not entitled to transfer title to the property for some reason
D) Liens and encumbrances that are registered against the property

2. 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.

3. A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

A) Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
B) Potential to recover capital through refinancing is an advantage of owning commercial real estate.
C) Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.
D) Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.

4. Finish the sentence: The Employment Standards Act:

A) Specifies the terms of a business partnership agreement.
B) Protects the rights of workers of a business that is being sold.
C) Regulates matters involving ownership of a business.
D) Regulates trade names.

5. Which of the following is a characteristic of main street retail?

A) Comprises a blend of old and new stores
B) Structure size typically ranges from 100,000 to 130,000 square feet
C) Must be located in a small, older community
D) Consists of newer, free-standing buildings only

Solutions: