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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to test the quality of the underground water source
B) A clause to obtain the necessary mortgage amount
C) A clause to ensure the truck parking spaces and turning radius are sufficient
D) A clause to check the condition of the trucks and vans

2. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
B) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
C) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
D) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.

3. A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?

A) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.
B) The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
C) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.
D) The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.

4. A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

A) The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
B) The salesperson is responsible for negotiating the tenant's stock delivery window.
C) Should a delivery truck arrive during an emergency, the property manager must be available.
D) Stock delivery cannot be restricted in a commercial agreement to lease.

5. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?

A) Private mortgage form
B) Income verification documents
C) Environmental site assessments
D) Telephone bills

Solutions: