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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A. The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
B. The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
C. The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
D. The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

Question 2

A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A. The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.
B. The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
C. The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
D. The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.

Question 3

An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A. Serving one waiver
B. Serving separate waivers
C. Serving separate notices of fulfillment
D. Serving one notice of fulfillment

Question 4

A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A. The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
B. The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.
C. The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.
D. The tenant's signage is considered a trade fixture and shall remain the tenant's property.

Question 5

Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A. Demographics
B. Financial health of the company
C. Surrounding uses
D. Traffic counts

Solutions: