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The key mechanical components of commercial buildings include heating, cooling, and electrical systems. Which of the following tasks is NOT usually completed by the salesperson?

A.

Ensuring inspections are being carried out as required

B.

Contacting contractors for quotes for repairing or replacing equipment

C.

Reviewing whether the technical components have been recently replaced or upgraded

D.

Learning what types of equipment are in the building and having a general understanding of theirage and condition

Which of the following statements about industrial building components is correct?

A.

Bay depth is an important consideration when determining the layout of an industrial process.

B.

Loading docks are only used to off-load products or raw materials.

C.

Flat roofs are designed to be flat to hold water.

D.

Floor load refers to the weight of the building during construction.

A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A.

Change the completion date by using a waiver.

B.

Change the completion date by using a notice of fulfillment.

C.

Change the completion date by using an amendment to the agreement of purchase and sale.

D.

A change is not necessary because the damage is out of the control of the buyer or the seller.

Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?

A.

A clause for the buyer to review the leases only after all conditions have been waived and accepted

B.

A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement

C.

A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing

D.

A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price

A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

A.

The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.

B.

A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.

C.

State that the buyer is assuming all animals on an "as is" basis.

D.

State that the seller will continue the day-to-day farm operations until closing.

In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

A.

A company’s adjusted book value should be equal to the actual market value of the business.

B.

The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.

C.

A company’s adjusted book value is entirely unrelated to its net worth.

D.

The adjusted book value method takes goodwill into account when establishing the value of a business.

When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A.

Goodwill

B.

Fixed equipment

C.

Residence

D.

Barns and sheds

A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A.

The municipality will take the number of available parking spaces and divide it by the property’s gross leasable area.

B.

The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

C.

The municipality will take the number of available parking spaces and divide it by the property’s net leasable area.

D.

The municipality will take the property’s gross leasable area and divide it by the number of available parking spaces.

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 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.

Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A.

Power stations

B.

Petroleum storage and distribution sites

C.

Chemical manufacturers

D.

Computer training institute