Humber College PREX-1060A Exam Questions : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

A) The names of all the tenant's suppliers
B) The names of all parties to the lease
C) The commencement date of the lease
D) A description of the premises

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 review the leases only after all conditions have been waived and accepted
B) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
C) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
D) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement

3. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

A) Recommend the services of third-party professionals to measure it.
B) Tell the seller the usable size is 80 percent of the rentable size.
C) Use a laser measuring device to take the measurements.
D) Add a disclaimer to protect the seller from any discrepancy.

4. A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

A) Penalties for late payments will be added to the monthly rent.
B) The options for late payments are the same for every lender.
C) Each lender has their own method for dealing with late payments.
D) There are no penalties for late payments in a commercial mortgage.

5. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
B) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.
C) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
D) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.

Solutions: