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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?

A) Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
B) Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
C) Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
D) Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.

2. What is the best indicator of a strong office market?

A) The absorption rate, net absorption rate, and rising rental rates
B) Low rental rates and many concessions
C) The number of free months given to new and renewing tenants by landlords in the office marketplace
D) When tenants have lots of options because of the amount of available space at favorable rates

3. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

A) Use a laser measuring device to take the measurements.
B) Recommend the services of third-party professionals to measure it.
C) Add a disclaimer to protect the seller from any discrepancy.
D) Tell the seller the usable size is 80 percent of the rentable size.

4. A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

A) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
B) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
C) The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.
D) Remuneration can be calculated based on the difference between the listing price and the actual rental price.

5. A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
B) The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
C) The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
D) The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

Solutions: