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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Net lease
B) Gross lease
C) Triple net lease
D) Percentage lease

2. A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

A) Remuneration can be calculated based on the difference between the listing price and the actual rental price.
B) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
C) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
D) The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.

3. When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

A) Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
B) Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
C) Include the current tax assessment as a schedule of the agreement.
D) Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.

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

5. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
B) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
C) The buyer can use the same amendment to ask for a change of the closing date.
D) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.

Solutions: