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1. 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) A registered right of way that blocks the buyer's intended use of the property
B) The seller is not entitled to transfer title to the property for some reason
C) The property's use doesn't comply with municipal zoning bylaws
D) Liens and encumbrances that are registered against the property
2. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?
A) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
B) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
C) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
D) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
3. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?
A) Terminate the lease and start looking for a new space.
B) Repair the damage and deduct the cost from the rent.
C) Contact a lawyer and immediately start a legal action for damages.
D) Meet with the property manager, review the lease, and determine a course of action.
4. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?
A) The salesperson must verify the previous tenant's lease rates and terms.
B) The salesperson must verify the rates and terms of lease for the property.
C) The salesperson must verify the zoning information for the industrial property.
D) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
5. Which of the following is a reason why an owner might consider redeveloping an industrial property?
A) The cost of relocating is low.
B) A redevelopment will seriously disrupt the current operation.
C) A similar building can be bought at a low price.
D) The existing building no longer provides the highest and best use of the site.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |
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