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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q21-Q26):
NEW QUESTION # 21
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. Gather, organize, and verify all pertinent information
- B. Create a business plan
- C. Identify third-party professionals
- D. Estimate time frames required for due diligence and other offer conditions
Answer: B
NEW QUESTION # 22
A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?
- A. The salesperson should explain that the client should always consider being a short-term investor.
- B. The salesperson should explain that a better return on investment will be achieved with rising interest rates.
- C. The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
- D. The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
Answer: C
NEW QUESTION # 23
Which of the following statements regarding heavy industrial use and light industrial use is correct?
- A. Heavy industrial use can produce more pollution than other commercial activities.
- B. Clay production is an example of light industrial use.
- C. Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
- D. Light industrial use usually results in more noise and heavier traffic.
Answer: A
NEW QUESTION # 24
Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?
- A. The salesperson must verify the rates and terms of lease for the property.
- B. The salesperson must verify the zoning information for the industrial property.
- C. The salesperson must verify the previous tenant's lease rates and terms.
- D. The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
Answer: C
NEW QUESTION # 25
A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?
- A. If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
- B. If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
- C. The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
- D. The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
Answer: D
NEW QUESTION # 26
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