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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

A) $120,000
B) $130,000
C) $80,000
D) $60,000

2. Both the landlord and the tenant have responsibilities in the management of their relationship as per the commercial lease agreement. Which of the following is NOT an accurate statement regarding the roles and responsibilities of landlords and tenants as per the Commercial Agreement to Lease?

A) All commercial leases require that tenants keep everything in and about the property, including all points of entry and exit, in good repair at all times.
B) Not all commercial leases require the landlord to perform repairs and maintenance.
C) Tenants are obligated to ensure they have adequate tenant insurance for their property.
D) The landlord must address their tenants' issues in a timely manner in general but more so when the issue can result in serious and costly consequences.

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

A) There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
B) A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
C) 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.
D) 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.

4. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?

A) Private mortgage form
B) Income verification documents
C) Environmental site assessments
D) Telephone bills

5. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
B) Parking may be impacted by the municipality's parking bylaw.
C) Parking may be impacted by zoning requirements.
D) There may be minimum width and depth requirements for parking spaces.

Solutions: