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Humber College Exam 4: Invigilated Theory Sample Questions:

1. When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A) What is the construction cost of the building?
B) Is the ownership of the building a corporation or a partnership?
C) Is inventory included in the sale of this business?
D) Is there any easement on the property?

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

3. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Access to raw materials used in the region
B) Proximity to museums and historical sites
C) Amount of advertising and publicity
D) Price trend for detached homes in nearby neighborhoods

4. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) Parking may be impacted by zoning requirements.
B) There may be minimum width and depth requirements for parking spaces.
C) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
D) Parking may be impacted by the municipality's parking bylaw.

5. A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

A) The salesperson should advise the buyer to consider the price of their products.
B) The salesperson should advise the buyer to consider the size of their products.
C) The salesperson should advise the buyer to consider their business's predicted monthly inventory.
D) The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.

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