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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 zoning information for the industrial property.
B) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
C) The salesperson must verify the previous tenant's lease rates and terms.
D) The salesperson must verify the rates and terms of lease for the property.

2. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Pass the transaction to the broker of record so that the broker will take care of it.
B) Terminate the transaction and disengage from it.
C) Obtain the remuneration owed.
D) Conduct an analysis of why the transaction will not be carried out.

3. 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.

4. A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

A) The rent increase can be challenged by the Landlord and Tenant Board.
B) The rent increase cannot be more than the Consumer Price Index (CPI).
C) The rent increase cannot be higher than the guideline set by the government.
D) The rent increase can be any amount.

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 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.
B) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
C) The buyer can use the same amendment to ask for a change of the closing date.
D) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.

Solutions: