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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A) Both tilt-up panels and pre-cast panels can lower construction costs.
B) Pre-cast panels are more durable than tilt-up panels.
C) Both tilt-up panels and pre-cast panels are formed off-site.
D) Pre-cast panels cost much more than tilt-up panels.

3. There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?

A) A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
B) There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
C) If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
D) Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.

4. Which of the following statements regarding heavy industrial use and light industrial use is correct?

A) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
B) Heavy industrial use can produce more pollution than other commercial activities.
C) Light industrial use usually results in more noise and heavier traffic.
D) Clay production is an example of light industrial use.

5. A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?

A) Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.
B) Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
C) Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
D) Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.

Solutions: