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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q40-Q45):

NEW QUESTION # 40
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 the layout of the complex, as it will directly establish the utility of the mixed- use building.
B. 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.
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 research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

Answer: D

NEW QUESTION # 41
Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A. A stable internet connection
B. A high voltage and ampere supply
C. Sufficient lighting
D. A proper ventilation system

Answer: B

NEW QUESTION # 42
A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

A. The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
B. The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
C. The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
D. The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.

Answer: A

NEW QUESTION # 43
A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A. Terminate the lease and start looking for a new space.
B. Contact a lawyer and immediately start a legal action for damages.
C. Repair the damage and deduct the cost from the rent.
D. Meet with the property manager, review the lease, and determine a course of action.

Answer: D

NEW QUESTION # 44
Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A. All new commercial properties must undergo an ESA before construction begins.
B. The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
C. An ESA is not required if the buyer is purchasing the industrial property for their own use.
D. No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.

Answer: C

NEW QUESTION # 45
......

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q40-Q45):

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