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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 check the condition of the trucks and vans
C) A clause to obtain the necessary mortgage amount
D) A clause to test the quality of the underground water source

2. A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A) Both tilt-up panels and pre-cast panels are formed off-site.
B) Pre-cast panels are more durable than tilt-up panels.
C) Both tilt-up panels and pre-cast panels can lower construction costs.
D) Pre-cast panels cost much more than tilt-up panels.

3. A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

A) The salesperson is responsible for negotiating the tenant's stock delivery window.
B) Stock delivery cannot be restricted in a commercial agreement to lease.
C) The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
D) Should a delivery truck arrive during an emergency, the property manager must be available.

4. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The tenant can have the deposit back without signing a mutual release as it is not their fault.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The landlord and tenant may agree to split the deposit.
D) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.

5. Which of the following accurately describes a landlord's commercial property insurance coverage?

A) A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
B) A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
C) A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
D) A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.

Solutions: