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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q47-Q52):

NEW QUESTION # 47
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A. The farm is sold to a corporation and the HST is included in the selling price.
B. The farmer sells the farm to a relative.
C. The farmer uses a smaller portion of the farm for a residence.
D. The farm has been used for personal use.

Answer: D

NEW QUESTION # 48
A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A. A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
B. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
C. The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
D. The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.

Answer: C

NEW QUESTION # 49
Which of the following is a risk associated with investing in commercial real estate?

A. The fact that rent, leased space, and building size are fixed
B. The relative lack of liquidity
C. The insufficiency of cash flow during the holding period
D. The relative lack of capital growth during the holdover period

Answer: B

NEW QUESTION # 50
A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A. The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B. The tenant can have the deposit back without signing a mutual release as it is not their fault.
C. The landlord and tenant may agree to split the deposit.
D. The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.

Answer: B

NEW QUESTION # 51
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 rates and terms of lease for the property.
B. The salesperson must verify the previous tenant's lease rates and terms.
C. The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
D. The salesperson must verify the zoning information for the industrial property.

Answer: B

NEW QUESTION # 52
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