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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

A) State that the seller will continue the day-to-day farm operations until closing.
B) A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.
C) State that the buyer is assuming all animals on an "as is" basis.
D) The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.

2. 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.

3. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Storage
B) Fitting rooms
C) Kitchens/lunchrooms
D) Boardrooms, private offices, and workstations

4. The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A) Repairs
B) Operations
C) Supervision
D) Depreciation

5. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
B) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.
C) A conditional time period for verifying the soil condition or type that is five days in length.
D) A conditional time period for a property inspection that is 30 business days in length.

Solutions: