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Humber College Exam 4: Invigilated Theory Sample Questions:

1. All of the following aspects of a commercial property may affect its eligibility for Leadership in Energy and Environmental Design (LEED) certification, EXCEPT:

A) Sustainability
B) Innovative elements
C) Vacancy rate
D) Energy efficiency

2. A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A) The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
B) The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.
C) The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.
D) The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.

3. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
B) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
C) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
D) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.

4. There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?

A) The irrevocability clause
B) The date of the agreement of purchase and sale
C) The purchase price
D) The balance due clause

5. The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:

A) Net operating income
B) Assets
C) Shareholder's equity
D) Liabilities

Solutions: