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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q53-Q58):

NEW QUESTION # 53
Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A. Traffic counts
B. Demographics
C. Surrounding uses
D. Financial health of the company

Answer: D

NEW QUESTION # 54
A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?

A. Ensure there is parking and repair space available for commercial trucks.
B. Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.
C. Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.
D. Confirm that the contract of the condominium property management company has been renewed for at least 10 years.

Answer: B

NEW QUESTION # 55
A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?

A. The success of ventures often rests in the availability and suitability of financing.
B. It does not matter; mortgaging does not affect cash flow and yields.
C. Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
D. The investor is afforded the opportunity to enhance yield.

Answer: B

NEW QUESTION # 56
A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
B. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
C. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
D. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.

Answer: B

NEW QUESTION # 57
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 amount of floor area that is clear of interference from columns and walls.
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 highest point of the ceiling or roof component.
D. 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.

Answer: A

NEW QUESTION # 58
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