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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q17-Q22):

NEW QUESTION # 17
A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?

A. A list of equipment, chattels, and fixtures that are included with the business.
B. A list of customers who have purchased products in the last 60 months or since the business was acquired.
C. An income statement for the past 12 months or since the business was acquired.
D. A statement of the expenses for the business for the past year or since the business was acquired.

Answer: C

NEW QUESTION # 18
A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A. The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
B. The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
C. The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
D. The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

Answer: B

NEW QUESTION # 19
Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A. Chemical manufacturers
B. Petroleum storage and distribution sites
C. Power stations
D. Computer training institute

Answer: D

NEW QUESTION # 20
A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A. Contact a lawyer and immediately start a legal action for damages.
B. Meet with the property manager, review the lease, and determine a course of action.
C. Terminate the lease and start looking for a new space.
D. Repair the damage and deduct the cost from the rent.

Answer: B

NEW QUESTION # 21
A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

A. If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
B. The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
C. The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
D. If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.

Answer: C

NEW QUESTION # 22
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