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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

A) Requesting an RSC is mandatory in all real estate transactions.
B) With other documents, it will inform the buyer of any legal issues attached to the title.
C) It is not a material fact; thus, it is a formality for the buyer to get it.
D) It contains records pertaining to a property's financial condition.

2. A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A) An opinion from the seller's lawyer
B) A sketch of the seller's floor layout
C) A surveyor's certificate for the unit
D) An opinion from the property manager

3. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
B) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
C) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.
D) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.

4. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B) The landlord and tenant may agree to split the deposit.
C) The tenant can have the deposit back without signing a mutual release as it is not their fault.
D) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.

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

Solutions: