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- Exam Name: Exam 4: Invigilated Theory Exam
- Q & A: 108 Questions and Answers
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- Exam Code: PREX-1060A
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Property Development and Land Use | - Taxation and Regulatory Considerations
|
| Commercial Property Transactions | - Commercial Leasing
|
| Financial Analysis | - Commercial Financing
|
| Commercial Property Types | - Industrial Properties
|
Humber College Exam 4: Invigilated Theory Sample Questions:
Question #1
In a commercial transaction, which of the following is NOT a responsibility of the lawyer?
- A. Remedy of title issues
- B. Exchange of legal documents
- C. Review of the Agreement of Purchase and Sale
- D. Review of financial statements
Correct Answer: D 🗳️
Question #2
Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?
- A. Terminate the transaction and disengage from it.
- B. Conduct an analysis of why the transaction will not be carried out.
- C. Pass the transaction to the broker of record so that the broker will take care of it.
- D. Obtain the remuneration owed.
Correct Answer: B 🗳️
Question #3
A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?
- A. A zoning specialist in the city's planning department
- B. An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
- C. A legal consultant who specializes in evicting residential tenants
- D. A consultant in a financial institution
Correct Answer: C 🗳️
Question #4
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 research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
- D. The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
Correct Answer: B 🗳️
Question #5
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 clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.
- B. 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.
- C. 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.
- D. 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.
Correct Answer: B 🗳️
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