Answer sheets Scenario 1 Important: The following is simply an example of a completed commercial real estate brokerage exam that demonstrates mastery of the sum of competencies. Several solutions and approaches may, therefore, be valid for any given element. Organisme d autoréglementation du courtage immobilier du Québec, 2012 - All rights reserved.
Answer Sheet Element answered Enter letter of element answered here A Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER Mr. Tremblay must allow visits outside business hours in order not to negatively impact business and clients. Mr. Tremblay should try to meet tenants in person and inform them that there will be some visits to the dwellings, but a prior notice will be sent to them. Page 1 of 8
Answer Sheet Element answered Enter letter of element answered here B Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER Calculation of potential gross income (PGI) Potential gross income = maximum income that the immovable can generate if occupied at 100% throughout the year. 12 x $800 (unit 1) = $9,600 12 x $800 (unit 2) = $9,600 12 x $825 (unit 3) = $9,900 12 x $1,050 (unit 4) = $12,600 12 x $825 (unit 5) = $9,900 12 x $1,250 (unit 6) = $15,000 Unit 7 = $2,000 x 12 = $24,000 Unit 8 = $3,000 x 12 = $36,000 Unit 9 = $3,000 x 12 = $36,000 PGI = $162,600 Page 2 of 8
Answer Sheet Element answered Enter letter of element answered here B Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER Calculation of effective gross income (EGI) EGI = PGI ($162,600) Vacancies and bad debts (3% (2+1) x $162,600 = $4,878) EGI = $162,600 - $4,878 = $157,722 Calculation of expenses before taxes Management fees: 5% x $157,722 = $7,886 + School tax: $6,650 + Municipal tax: $16,950 + Snow removal: $875 + Lawn: $1,000 + Insurance: $5,000 + Electricity: $5,000 + Janitorial fees: $800 + Fuel oil: $7,358 + Maintenance - repairs: $10,000 Total of expenses: $61,519 Effective net income (ENI) ENI = EGI ($157,722) - expenses ($61,519) = $96,203 Market value (MV) MV = ENI / capitalization rate= $96,203 / 5% = $1,924,060 Page 3 of 8
Answer Sheet Element answered Enter letter of element answered here C Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER The net lease includes a periodic base rent, to which the tenant s proportionate share of for the immovable s operating costs is added. There are many types of net leases under which the tenant is responsible for expenses at different levels in accordance with what is stipulated in the lease. To conclude, the lessor would have to assume fewer expenses with a net lease than a gross lease. The net lease provides a better protection for the owner from cost fluctuation. Page 4 of 8
Answer Sheet Element answered Enter letter of element answered here D Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER I draft with my client a brokerage contract (BCG00001), declaration by the seller of the immo vable, transitory annex and completethe detailed list of leases. Page 5 of 8
Answer Sheet Element answered Enter letter of element answered here E Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER I complete the detailed description of the income property. Page 6 of 8
Answer Sheet Element answered Enter letter of element answered here F Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER The broker must present the client with all transaction proposals he receives (without preference, including the chronological order of its receipt, the licence holder who took it or the circumstances surrounding the taking of the proposal) as soon as possible. If a buyer s broker asks for information about the immovable, the seller s broker must inform him, from the beginning, that a transaction proposal is already underway. Inform the parties or their brokers of the existence of another promise to purchase (otherwise, this will be considered as an unfair practice or treatment) Promote his client s interests while providing a fair treatment to all parties engaged in the transaction. The broker must advise his client, but obviously it is the client who makes the final decision. Page 7 of 8
Answer Sheet Element answered Enter letter of element answered here G Directives : Instructions: You must indicate the element from the scenario that you are answering in the right-hand box above. In addition to answering the questions indicated in each element of the scenario, you must enter on these sheets all the advice and explanations you will give to your client at each step of the transaction. Where applicable, enter any calculations required, taking care to explain your process in detail. ANSWER The seller will not be obliged to sell the immovable to the buyer. Indeed, the owner s brokerage contract constitutes a general invitation to the public to submit promises to purchase. The owner is free to accept or refuse the offers submitted. The broker may require the full payment of his commission. The brokerage contract instructs the broker to find a buyer according to specific conditions. If the broker fulfills his mandate, he has the right to ask for his remuneration. Page 8 of 8
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