Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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) Add a disclaimer to protect the seller from any discrepancy.
C) Recommend the services of third-party professionals to measure it.
D) Tell the seller the usable size is 80 percent of the rentable size.

2. Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

A) Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.
B) Agrees to pay additional rent for a gross lease.
C) Cannot pay rent to the property manager and must pay directly to the property owner.
D) Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.

3. A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A) The tenant's signage is considered a trade fixture and shall remain the tenant's property.
B) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.
C) The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
D) The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.

4. The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?

A) The cost approach is typically used to appraise income-generating properties.
B) The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.
C) The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
D) The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.

5. 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) 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.
B) Remuneration can be calculated based on the difference between the listing price and the actual rental price.
C) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
D) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.

Solutions: