REM 300 Final Exam Review Questions 2024/2025 with 100% correct answers
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Course
REM 300 Fin
Institution
REM 300 Fin
The Insurance policy of a retail building is usually based on which of the following value?
A) Average selling price comparable properties
B)Full replacement value of property
C)Original cost of the property
D) Market value of the property correct answersB)Full replacement value of property
...
The Insurance policy of a retail building is usually based on which of the following value?
A) Average selling price comparable properties
B)Full replacement value of property
C)Original cost of the property
D) Market value of the property correct answersB)Full replacement value of property
Which of the following statements is correct about commercial leases?
A)Landlords are always obligated to give notice of intent to inspect tenanted premises
B)On termination of a lease all leasehold improvements become the property of the former tenant
C) Tenants are typically allowed to replace fixtures without the landlords approval
D) In the event that a subtenant defaults on rent the original tenant is held responsible for the provisions
of the lease correct answersD) In the event that a subtenant defaults on rent the original tenant is held
responsible for the provisions of the lease
Brisbane insurance brokers currently rents 850 sq. ft. of space at an office building with a total rentable
area of 100,000 sq. ft. under a base rent and additional rent lease agreement. Base rent is calculated at
$3 per sq. ft. per annum and additional rent is calculated on a proportionate basis. Total annual
operating expenses for the building are $855,000. What is the total monthly rent paid?
1) 3155.63
2)9816.5
3)818.13
4)7480.00 correct answers3)818.13
XYZ Corp currently rents 123,000 sq. ft. of space at an officebuilding with a total rentable area of
1,160,000 sq. ft. under abase rent and additional rent lease agreement. Base rent iscalculated at $12 per
sq. ft. per annum and additional rent iscalculated on a proportionate basis. Total annual
operatingexpenses for the building are $2,200,000. What is the totalmonthly rent paid?
A. 2,323,000
, B. 1,709,275
C. 142,440
D. 98,000 correct answersC. 142,440
Which of the following are the two main factors that affect demand elasticity in a market?
A) Capital costs and the quantity of new supply
B) Location preference and search cost for new space
C)New supply and the search costs for new buildings
D)Business demand and transaction costs correct answersB) Location preference and search cost for new
space
Canberra Associates a business consulting firm is currently negotiation a triple net lease to rent office
space in an office complex downtown Toronto. Which of the following is likely to feature in the office
lease?
A) Retail restrictions
B)Operating Cost escalation
C) Exclusive rights clauses
D) Financial payment for promoting the office building correct answersB) Operating Cost escalation
Sobey's sales in July 2017 were $640,000. The percentage rent clause specifies a threshold of $500,000
(monthly) and a percentage of 10%. What percentage rent must Sobey's pay for this month?
A) 12,000
B)14,500
C)14,000
D)64,000 correct answersC)14,000
($640,000 - $500,000) x 0.1
Which of the following statements are incorrect of commercial leases?
a) The tenant is free to use leased premises for any purpose they desire as long as theycontinue to pay
rent
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