Question 1

Which of the following is a reason why an owner might consider redeveloping an industrial property?

Options :

A : The cost of relocating is low.

B : A similar building can be bought at a low price.

C : The existing building no longer provides the highest and best use of the site.

D : A redevelopment will seriously disrupt the current operation.

Answer: C

Question 2

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?

Options :

A : Acknowledgment

B : Notice of fulfillment

C : Mutual release

D : Waiver

Answer: D

Question 3

A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a

schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate

transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of

the office building were to be included and which were to be excluded. Which of the following is NOT an

accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

Options :

A :

The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.

B :

The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.

C :

The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.

D :

The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.

Answer: D

Question 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?

Options :

A : Zoning bylaws specify the permitted land uses throughout a municipality.

B :

Municipal zoning bylaws overrule all other laws with respect to land uses and issuance of building permits in Ontario.

C : New commercial construction and redevelopment must comply with zoning bylaws.

D : Municipalities have zoning bylaws that divide the city into different land uses or zones.

Answer: B

Question 5

A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

Options :

A :

The tenant-s signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.

B : The tenant-s signage is considered a trade fixture and shall remain the tenant-s property.

C :

The tenant-s signage shall be immediately removed at the end of their lease term(s) at the tenant’s expense.

D :

The tenant-s signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

Answer: A