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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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?

A) Notice of fulfillment
B) Acknowledgment
C) Mutual release
D) Waiver

2. A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A) Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.
B) The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
C) In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
D) The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.

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

4. Which of the following is NOT determined by zoning bylaws?

A) The amount of rent a building may generate
B) The types of buildings that are permitted in a location, their height, and how they may be used
C) Where buildings and other structures may be located
D) Lot dimensions and parking requirements

5. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
B) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
C) The buyer can use the same amendment to ask for a change of the closing date.
D) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.

Solutions: