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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

A) Cannot pay rent to the property manager and must pay directly to the property owner.
B) Agrees to pay additional rent for a gross lease.
C) Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.
D) Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

2. Which of the following is a risk associated with investing in commercial real estate?

A) The insufficiency of cash flow during the holding period
B) The fact that rent, leased space, and building size are fixed
C) The relative lack of capital growth during the holdover period
D) The relative lack of liquidity

3. A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?

A) A list of equipment, chattels, and fixtures that are included with the business.
B) An income statement for the past 12 months or since the business was acquired.
C) A statement of the expenses for the business for the past year or since the business was acquired.
D) A list of customers who have purchased products in the last 60 months or since the business was acquired.

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 ask the owner of the garage whether they have thought about selling their property at this time.
B) 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.
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 include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.

5. A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

A) Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
B) Zoning bylaws specify the permitted land uses throughout a municipality.
C) Municipalities have zoning bylaws that divide the city into different land uses or zones.
D) New commercial construction and redevelopment must comply with zoning bylaws.

Solutions: