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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

A) A description of the premises
B) The commencement date of the lease
C) The names of all parties to the lease
D) The names of all the tenant's suppliers

2. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for verifying the soil condition or type that is five days in length.
B) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.
C) A conditional time period for a property inspection that is 30 business days in length.
D) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.

3. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
B) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
C) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
D) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.

4. 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 submit the appropriate application semi-annually.
B) They carry on a farming business generating a net profit of $100,000.
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.

5. There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?

A) The purchase price
B) The irrevocability clause
C) The balance due clause
D) The date of the agreement of purchase and sale

Solutions: