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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
B) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
C) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.
D) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.

2. A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A) A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
B) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
C) The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
D) The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use 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 developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A) The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.
B) The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
C) The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.
D) The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.

5. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.
B) ESAs are regulated under the Canadian Environmental Protection Act.
C) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.
D) Every new commercial property must undergo an ESA prior to construction.

Solutions: