A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

• A. Mutual release
• B. Waiver
• C. Acknowledgment
• D. Notice of fulfillment

Which of the following accurately describes a landlord's commercial property insurance coverage?

• A. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
• B. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.
• C. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
• D. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.

A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

• A. Use a laser measuring device to take the measurements.
• B. Add a disclaimer to protect the seller from any discrepancy.
• C. Tell the seller the usable size is 80 percent of the rentable size.
• D. Recommend the services of third-party professionals to measure it.

A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

• A. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
• B. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
• C. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
• D. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.

A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

• A. Penalties for late payments will be added to the monthly rent.
• B. The options for late payments are the same for every lender.
• C. There are no penalties for late payments in a commercial mortgage.
• D. Each lender has their own method for dealing with late payments.