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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Real Estate Transactions | - Regulatory and professional obligations
|
Humber College Exam 4: Invigilated Theory Sample Questions:
1. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?
A) Triple net lease
B) Percentage lease
C) Gross lease
D) Net lease
2. Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?
A) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
B) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
C) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
D) A clause for the buyer to review the leases only after all conditions have been waived and accepted
3. A salesperson discusses with a buyer the potential advantages of purchasing brownfields for redevelopment.
What is NOT an advantage for the buyer of a brownfield property?
A) Brownfield properties can often be purchased at well below their potential market value.
B) The contaminants in brownfields contain precious metals that can be sold to earn additional income.
C) An owner who rehabilitates a brownfield property can receive tax incentives.
D) Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.
4. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:
A) Parking may be impacted by the municipality's parking bylaw.
B) Parking may be impacted by zoning requirements.
C) There may be minimum width and depth requirements for parking spaces.
D) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
5. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?
A) The Board can conduct hearings that are heard by a minimum of five board members.
B) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
C) The Board can dismiss complaints if the disturbances are the result of normal farm practices.
D) The Board can order farmers to modify practices for consistency with normal farm practices.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |
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