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Humber College Exam 4: Invigilated Theory Sample Questions:
1. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:
A) Parking may be impacted by the municipality's parking bylaw.
B) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
C) Parking may be impacted by zoning requirements.
D) There may be minimum width and depth requirements for parking spaces.
2. The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?
A) The cost approach is typically used to appraise income-generating properties.
B) The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
C) The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.
D) The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.
3. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?
A) Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
B) Businesses need to transport materials to and from the site.
C) Some trucks may need to park on the property overnight.
D) Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
4. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?
A) Remedy of title issues
B) Exchange of legal documents
C) Review of financial statements
D) Review of the Agreement of Purchase and Sale
5. A salesperson is drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:
A) Estimate time frames required for due diligence and other offer conditions
B) Identify third-party professionals
C) Gather, organize, and verify all pertinent information
D) Create a business plan
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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