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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A) A proper ventilation system
B) Sufficient lighting
C) A stable internet connection
D) A high voltage and ampere supply

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

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

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

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

4. The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

A) Reviewing whether the technical components have been recently replaced or upgraded.
B) Learning what types of equipment are in the building and having a general understanding of their age and condition.
C) Ensuring inspections are being carried out as required.
D) Contacting contractors for quotes for repairing or replacing equipment.

5. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Review of the Agreement of Purchase and Sale
B) Review of financial statements
C) Exchange of legal documents
D) Remedy of title issues

Solutions: