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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A) A list of fixtures included in the sale
B) A statement of the assets and liabilities of the brokerage
C) A list of chattels excluded in the sale
D) A profit and loss statement for the real estate brokerage for the preceding 12 months

2. Land developers purchase land for commercial, industrial, and residential projects. Tracts of land larger than five acres but smaller than 10 acres may appeal to land developers for various reasons. Which of the following is one of the reasons?

A) They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.
B) They can be used for newly planned subdivisions.
C) They are a good size for modern 18-hole golf courses.
D) The developer cannot find a building lot to build a detached home.

3. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A) The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.
B) The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.
C) The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
D) The municipality will take the number of available parking spaces and divide it by the property's net leasable area.

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

5. 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

Solutions: