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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Property Types | - Retail and Office Properties
|
| Commercial Property Transactions | - Commercial Property Sales
|
| Property Development and Land Use | - Taxation and Regulatory Considerations
|
| Financial Analysis | - Business Financial Review
|
Humber College Exam 4: Invigilated Theory Sample Questions:
1. A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?
A) Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.
B) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.
C) Confirm that the contract of the condominium property management company has been renewed for at least 10 years.
D) Ensure there is parking and repair space available for commercial trucks.
2. Which of the following is most likely to be a factor in an appraisal for an industrial property?
A) Amount of advertising and publicity
B) Price trend for detached homes in nearby neighborhoods
C) Proximity to museums and historical sites
D) Access to raw materials used in the region
3. A seller provides you with architectural drawings of their building. Which statement is NOT correct?
A) A photocopy of a source document can be used to verify information.
B) Other types of source documents include surveys and tax records.
C) If changes are made to source documents, they are still valid if you have the original document.
D) Architectural drawings are source documents.
4. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?
A) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
B) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
C) The landlord and tenant may agree to split the deposit.
D) The tenant can have the deposit back without signing a mutual release as it is not their fault.
5. Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?
A) A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.
B) A design-build arrangement is a sale/leaseback arrangement.
C) A design-build arrangement is commonly associated with a seller's market.
D) A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: D |
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