A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

• A. State that the buyer is assuming all animals on an "as is" basis.
• B. State that the seller will continue the day-to-day farm operations until closing.
• C. The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.
• D. A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.

A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

• A. $80,000
• B. $60,000
• C. $130,000
• D. $120,000

A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

• A. No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
• B. Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
• C. Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
• D. Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.

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. Change the completion date by using an amendment to the agreement of purchase and sale.
• B. Change the completion date by using a notice of fulfillment.
• C. Change the completion date by using a waiver.
• D. A change is not necessary because the damage is out of the control of the buyer or the seller.