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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q92-Q97):
NEW QUESTION # 92
Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?
- A. The seller is not entitled to transfer title to the property for some reason
- B. The property's use doesn't comply with municipal zoning bylaws
- C. Liens and encumbrances that are registered against the property
- D. A registered right of way that blocks the buyer's intended use of the property
Answer: B
NEW QUESTION # 93
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 property's equity due to a change in market conditions or to a recession.
- 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 tenant's assets and income due to business interruption as the result of a fire or flood.
Answer: C
NEW QUESTION # 94
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 tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
- 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 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.
- D. The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
Answer: D
NEW QUESTION # 95
A seller provides you with architectural drawings of their building. Which statement is NOT correct?
- A. Other types of source documents include surveys and tax records.
- B. Architectural drawings are source documents.
- C. A photocopy of a source document can be used to verify information.
- D. If changes are made to source documents, they are still valid if you have the original document.
Answer: D
NEW QUESTION # 96
A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?
- A. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.
- B. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
- C. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
- D. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
Answer: C
NEW QUESTION # 97
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