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Humber College Exam 4: Invigilated Theory Sample Questions:

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

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

2. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Triple net lease
B) Gross lease
C) Net lease
D) Percentage lease

3. A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A) An opinion from the property manager
B) A surveyor's certificate for the unit
C) A sketch of the seller's floor layout
D) An opinion from the seller's lawyer

4. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Review of the Agreement of Purchase and Sale
B) Exchange of legal documents
C) Review of financial statements
D) Remedy of title issues

5. 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.

Solutions: