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Humber College Exam 4: Invigilated Theory Sample Questions:

1. While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?

A) The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.
B) The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.
C) The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.
D) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.

2. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?

A) Income verification documents
B) Environmental site assessments
C) Private mortgage form
D) Telephone bills

3. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to ensure the truck parking spaces and turning radius are sufficient
B) A clause to obtain the necessary mortgage amount
C) A clause to check the condition of the trucks and vans
D) A clause to test the quality of the underground water source

4. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
B) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
C) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
D) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.

5. If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

A) They carry on a farming business generating a net profit of $100,000.
B) They submit the appropriate application semi-annually.
C) They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
D) They are Canadian citizens or permanent residents of Canada.

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