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1. Which of the following statements regarding heavy industrial use and light industrial use is correct?
A) Heavy industrial use can produce more pollution than other commercial activities.
B) Light industrial use usually results in more noise and heavier traffic.
C) Clay production is an example of light industrial use.
D) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
2. 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) A change is not necessary because the damage is out of the control of the buyer or the seller.
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) Change the completion date by using a waiver.
3. A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?
A) The salesperson should explain that a better return on investment will be achieved with rising interest rates.
B) The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
C) The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
D) The salesperson should explain that the client should always consider being a short-term investor.
4. 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) 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.
B) 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.
C) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of 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.
5. A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?
A) An opinion from the property manager
B) A surveyor's certificate for the unit
C) A sketch of the seller's floor layout
D) An opinion from the seller's lawyer
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: B |
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