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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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) Operations
B) Depreciation
C) Supervision
D) Repairs

2. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Exchange of legal documents
B) Review of financial statements
C) Review of the Agreement of Purchase and Sale
D) Remedy of title issues

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

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

4. When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A) Industrial properties have a number of large, credit-worthy tenants and long-term leases.
B) Good transportation and distribution corridors do not matter to industrial investors and their tenants.
C) Industrial properties have a lower capital gains tax at disposition.
D) Higher mortgage interest rates will provide a better return on investment.

5. Which of the following statements about economic development offices is NOT correct?

A) Economic development offices provide background information on local, provincial, and federal research and development incentives.
B) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
C) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
D) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

Solutions: