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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

A) The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.
B) The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.
C) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.
D) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.

2. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) There may be minimum width and depth requirements for parking spaces.
B) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
C) Parking may be impacted by zoning requirements.
D) Parking may be impacted by the municipality's parking bylaw.

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

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

4. While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?

A) The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.
B) The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.
C) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
D) The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.

5. 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) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.
B) Ensure there is parking and repair space available for commercial trucks.
C) Confirm that the contract of the condominium property management company has been renewed for at least 10 years.
D) Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.

Solutions: