Question 1

Which of the following is a reason why an owner might consider redeveloping an industrial property?

Options :

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.

Answer: C

Question 2

Both the landlord and the tenant have responsibilities in the management of their relationship as per the commercial lease agreement. Which of the following is NOT an accurate statement regarding the roles and responsibilities of landlords and tenants as per the Commercial Agreement to Lease?

Options :

A :

The landlord must address their tenants' issues in a timely manner in general but more so when the issue can result in serious and costly consequences.

B :

All commercial leases require that tenants keep everything in and about the property, including all points of entry and exit, in good repair at all times.

C : Tenants are obligated to ensure they have adequate tenant insurance for their property.

D : Not all commercial leases require the landlord to perform repairs and maintenance.

Answer: B

Question 3

When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

Options :

A : Is there any easement on the property?

B : Is the ownership of the building a corporation or a partnership?

C : What is the construction cost of the building?

D : Is inventory included in the sale of this business?

Answer: D

Question 4

An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

Options :

A : Serving separate waivers

B : Serving one waiver

C : Serving separate notices of fulfillment

D : Serving one notice of fulfillment

Answer: C

Question 5

Which of the following is most likely to be a factor in an appraisal for an industrial property?

Options :

A : Amount of advertising and publicity

B : Proximity to museums and historical sites

C : Price trend for detached homes in nearby neighborhoods

D : Access to raw materials used in the region

Answer: D

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