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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Terminate the transaction and disengage from it.
B) Pass the transaction to the broker of record so that the broker will take care of it.
C) Obtain the remuneration owed.
D) Conduct an analysis of why the transaction will not be carried out.

2. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A) Use a laser measuring tool to take the measurements
B) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
C) Use the R/U factor to calculate the figures
D) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

3. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can conduct hearings that are heard by a minimum of five board members.
B) The Board can dismiss complaints if the disturbances are the result of normal farm practices.
C) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
D) The Board can order farmers to modify practices for consistency with normal farm practices.

4. A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A) Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
B) Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
C) Confirm the buyer's intended use adheres to all municipal zoning requirements
D) Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection

5. A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

A) $60,000
B) $120,000
C) $80,000
D) $130,000

Solutions: