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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q62-Q67):

NEW QUESTION # 62
What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A. Use the R/U factor to calculate the figures
B. Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
C. Recommend that the landlord obtain the professional services of a measuring company to obtain the figures
D. Use a laser measuring tool to take the measurements

Answer: C

NEW QUESTION # 63
Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

A. The property's use doesn't comply with municipal zoning bylaws
B. Liens and encumbrances that are registered against the property
C. A registered right of way that blocks the buyer's intended use of the property
D. The seller is not entitled to transfer title to the property for some reason

Answer: A

NEW QUESTION # 64
If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

A. They are Canadian citizens or permanent residents of Canada.
B. They submit the appropriate application semi-annually.
C. They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
D. They carry on a farming business generating a net profit of $100,000.

Answer: C

NEW QUESTION # 65
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. Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
C. Zoning bylaws specify the permitted land uses throughout a municipality.
D. New commercial construction and redevelopment must comply with zoning bylaws.

Answer: B

NEW QUESTION # 66
Audited and unaudited statements provide the financial status of a business to potential buyers. What is the main difference between audited and unaudited financial statements?

A. Unaudited financial statements are prepared by Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.
B. Audited financial statements provide an accurate picture of the financial status of a business; unaudited financial statements may only contain partially reviewed information.
C. Unaudited financial statements are prepared by accounting students; audited financial statements are completed by accountants who have received their professional designation.
D. Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.

Answer: D

NEW QUESTION # 67
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