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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 to achieve capital growth, the client should be a long-term investor.
C) The salesperson should explain that a better return on investment will be achieved with rising interest rates.
D) The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.

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

3. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The landlord and tenant may agree to split the deposit.
D) The tenant can have the deposit back without signing a mutual release as it is not their fault.

4. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
B) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures
C) Use the R/U factor to calculate the figures
D) Use a laser measuring tool to take the measurements

5. Which of the following is NOT determined by zoning bylaws?

A) Where buildings and other structures may be located
B) The amount of rent a building may generate
C) The types of buildings that are permitted in a location, their height, and how they may be used
D) Lot dimensions and parking requirements

Solutions: