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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Notice of fulfillment
B) Mutual release
C) Waiver
D) Acknowledgment

2. Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?

A) A clause for the buyer to review the leases only after all conditions have been waived and accepted
B) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
C) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
D) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price

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

4. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) All new commercial properties must undergo an ESA before construction begins.
B) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
C) An ESA is not required if the buyer is purchasing the industrial property for their own use.
D) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.

5. In regard to equipment at an industrial property that is being shown for sale, a salesperson representing a buyer should do all of the following, EXCEPT:

A) Obtain clarification as to which equipment seen during the showing will be included in the purchase price of the property.
B) Contact the seller's representative prior to the showing to gain awareness of safety and compliance requirements.
C) Ensure chattels or fixtures are not included in the sale or negotiated for in the agreement.
D) Ensure they are informed as to whether the equipment shown will be relevant for the buyer's intended use.

Solutions: