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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following is a characteristic of main street retail?

A) Structure size typically ranges from 100,000 to 130,000 square feet
B) Consists of newer, free-standing buildings only
C) Must be located in a small, older community
D) Comprises a blend of old and new stores

2. A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

A) The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
B) The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
C) The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
D) The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.

3. A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

A) The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.
B) The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.
C) The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.
D) The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.

4. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to test the quality of the underground water source
B) A clause to ensure the truck parking spaces and turning radius are sufficient
C) A clause to check the condition of the trucks and vans
D) A clause to obtain the necessary mortgage amount

5. A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

A) There is a residential neighborhood and playground nearby.
B) The neighboring property includes a restaurant, a dental clinic, and a law office.
C) There is vacant land nearby with a small pond with discolored standing water.
D) The office building next door has an overflow parking lot.

Solutions: