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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) Energy efficiency
C) Innovative elements
D) Vacancy rate

2. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.
B) Every new commercial property must undergo an ESA prior to construction.
C) ESAs are regulated under the Canadian Environmental Protection Act.
D) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

3. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Triple net lease
B) Percentage lease
C) Gross lease
D) Net lease

4. A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

A) Municipalities have zoning bylaws that divide the city into different land uses or zones.
B) Zoning bylaws specify the permitted land uses throughout a municipality.
C) Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
D) New commercial construction and redevelopment must comply with zoning bylaws.

5. A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

A) The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.
B) The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
C) The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
D) The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.

Solutions: