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Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

A) They carry on a farming business generating a net profit of $100,000.
B) They submit the appropriate application semi-annually.
C) They are Canadian citizens or permanent residents of Canada.
D) They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.

3. The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A) Supervision
B) Repairs
C) Depreciation
D) Operations

4. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A) The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.
B) The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.
C) The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
D) The municipality will take the number of available parking spaces and divide it by the property's net leasable area.

5. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) A photocopy of a source document can be used to verify information.
B) Other types of source documents include surveys and tax records.
C) If changes are made to source documents, they are still valid if you have the original document.
D) Architectural drawings are source documents.

Solutions: