Humber Real Estate: Course 4, Module 1
ACTUAL QUESTIONS AND CORRECT
ANSWERS
M1, L1
What is commercial real estate? - CORRECT ANSWERS Any property
used exclusively for business purposes
What are the hours for a commercial real estate salesperson? - CORRECT
ANSWERS Works during business hours
What is an independent contractor? - CORRECT ANSWERS Has a
contract FOR service with a brokerage
- hiring independent contractors saves on taxes
- can write off personal expenses
What is an employee? - CORRECT ANSWERS Contract OF service
exists
- employer controls and supervises
Are larger or smaller brokerages more likely to have independent contractors? -
CORRECT ANSWERS Smaller brokerages- Independent contractors
Bigger brokerages- Employees
Whats the difference between smaller and larger brokerages: - CORRECT
ANSWERS Smaller brokerages offer LESS support and LESS extensive
formal in house training compared to a large broekrages
,Commercial: Authority to offer for sale- Seller Rep. Agreement is what OREA
Form # - CORRECT ANSWERS OREA FORM 520
What's the difference between the seller rep. residential agreement and
commercial agreement in the DEFINITIONS AND INTERPRETATIONS
CLAUSE? - CORRECT ANSWERS expands definition of a purchase to
include an option to purchase, exercising a First Right of Refusal, and the
selling or transferring of shares or assets
What's the difference between the seller rep. residential agreement and
commercial agreement in the COMMISSION CLAUSE - CORRECT
ANSWERS ADDED PROVISION:
- if a deposit is forfeited, awarded, directed, or released by the seller, the listing
brokerage is authorized by the seller to retain 50% of the deposit for services
rendered (not exceeding remuneration that would have been payable if sale was
completed)
What's the difference between the seller rep. residential agreement and
commercial agreement in the INDEMNIFICATION AND INSURANCE
CLAUSE - CORRECT ANSWERS - includes liability, claim, loss, cost,
damage, or injury resulting from contaminants or environmental problems
- seller warrants that the property is insures, including personal liability
insurance against any claims or lawsuits resulting from bodily injury or property
damage to others
Commercial: Mandate for Purchase- Buyer rep. Agreement is what OREA Form
#? - CORRECT ANSWERS OREA FORM 540
What's the difference between the Buyer rep. residential agreement and
commercial agreement in the DEFINITIONS AND INTERPRETATIONS
CLAUSE? - CORRECT ANSWERS Expands definitions of purchase
(same as seller rep agreement)
, What's the difference between the Buyer rep. residential agreement and
commercial agreement in the SERVICES PROVIDED BY THE
BROKERAGE? - CORRECT ANSWERS ADDED PROVISION: space
is provided for other services as agreed between the parties (including
possibility of a separate schedule)
What's the difference between the Buyer rep. residential agreement and
commercial agreement in the RESPONSIBILITIES OF A BUYER? -
CORRECT ANSWERS sets out specific duties owed by the buyer to the
brokerage during the currency of the agreement
What is one of the first things you will complete on a seller/buyer rep.
agreement? - CORRECT ANSWERS The Term of the Agreement
What needs to be inserted in the term of the agreement? - CORRECT
ANSWERS Commencement and Expiry Date?
If the term exceeds ____ months, the seller/buyer must initial the form -
CORRECT ANSWERS 6 MONTHS
- duration of a rep agreement can be from 30 days to a year, or more)
M1, L2
What is the Commercial Tenancies Act? - CORRECT ANSWERS -
described as any lease involving a property that is principally used for business
activity and governed by the Commercial Tenancies Act
- there is NO standard, government issued lease
What are the rights and obligations of LANDLORDS under the CTA? -
CORRECT ANSWERS - must notify tenants of breach of lease and give
time to comply
- right to terminate when a tenant fails to fulfill obligations outlined in the lease
ACTUAL QUESTIONS AND CORRECT
ANSWERS
M1, L1
What is commercial real estate? - CORRECT ANSWERS Any property
used exclusively for business purposes
What are the hours for a commercial real estate salesperson? - CORRECT
ANSWERS Works during business hours
What is an independent contractor? - CORRECT ANSWERS Has a
contract FOR service with a brokerage
- hiring independent contractors saves on taxes
- can write off personal expenses
What is an employee? - CORRECT ANSWERS Contract OF service
exists
- employer controls and supervises
Are larger or smaller brokerages more likely to have independent contractors? -
CORRECT ANSWERS Smaller brokerages- Independent contractors
Bigger brokerages- Employees
Whats the difference between smaller and larger brokerages: - CORRECT
ANSWERS Smaller brokerages offer LESS support and LESS extensive
formal in house training compared to a large broekrages
,Commercial: Authority to offer for sale- Seller Rep. Agreement is what OREA
Form # - CORRECT ANSWERS OREA FORM 520
What's the difference between the seller rep. residential agreement and
commercial agreement in the DEFINITIONS AND INTERPRETATIONS
CLAUSE? - CORRECT ANSWERS expands definition of a purchase to
include an option to purchase, exercising a First Right of Refusal, and the
selling or transferring of shares or assets
What's the difference between the seller rep. residential agreement and
commercial agreement in the COMMISSION CLAUSE - CORRECT
ANSWERS ADDED PROVISION:
- if a deposit is forfeited, awarded, directed, or released by the seller, the listing
brokerage is authorized by the seller to retain 50% of the deposit for services
rendered (not exceeding remuneration that would have been payable if sale was
completed)
What's the difference between the seller rep. residential agreement and
commercial agreement in the INDEMNIFICATION AND INSURANCE
CLAUSE - CORRECT ANSWERS - includes liability, claim, loss, cost,
damage, or injury resulting from contaminants or environmental problems
- seller warrants that the property is insures, including personal liability
insurance against any claims or lawsuits resulting from bodily injury or property
damage to others
Commercial: Mandate for Purchase- Buyer rep. Agreement is what OREA Form
#? - CORRECT ANSWERS OREA FORM 540
What's the difference between the Buyer rep. residential agreement and
commercial agreement in the DEFINITIONS AND INTERPRETATIONS
CLAUSE? - CORRECT ANSWERS Expands definitions of purchase
(same as seller rep agreement)
, What's the difference between the Buyer rep. residential agreement and
commercial agreement in the SERVICES PROVIDED BY THE
BROKERAGE? - CORRECT ANSWERS ADDED PROVISION: space
is provided for other services as agreed between the parties (including
possibility of a separate schedule)
What's the difference between the Buyer rep. residential agreement and
commercial agreement in the RESPONSIBILITIES OF A BUYER? -
CORRECT ANSWERS sets out specific duties owed by the buyer to the
brokerage during the currency of the agreement
What is one of the first things you will complete on a seller/buyer rep.
agreement? - CORRECT ANSWERS The Term of the Agreement
What needs to be inserted in the term of the agreement? - CORRECT
ANSWERS Commencement and Expiry Date?
If the term exceeds ____ months, the seller/buyer must initial the form -
CORRECT ANSWERS 6 MONTHS
- duration of a rep agreement can be from 30 days to a year, or more)
M1, L2
What is the Commercial Tenancies Act? - CORRECT ANSWERS -
described as any lease involving a property that is principally used for business
activity and governed by the Commercial Tenancies Act
- there is NO standard, government issued lease
What are the rights and obligations of LANDLORDS under the CTA? -
CORRECT ANSWERS - must notify tenants of breach of lease and give
time to comply
- right to terminate when a tenant fails to fulfill obligations outlined in the lease
