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

2. A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A) Change the completion date by using an amendment to the agreement of purchase and sale.
B) Change the completion date by using a notice of fulfillment.
C) Change the completion date by using a waiver.
D) A change is not necessary because the damage is out of the control of the buyer or the seller.

3. Which of the following is a risk associated with investing in commercial real estate?

A) The insufficiency of cash flow during the holding period
B) The relative lack of capital growth during the holdover period
C) The relative lack of liquidity
D) The fact that rent, leased space, and building size are fixed

4. There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?

A) If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
B) There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
C) Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.
D) A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.

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

Solutions: