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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following is NOT determined by zoning bylaws?

A) Where buildings and other structures may be located
B) Lot dimensions and parking requirements
C) The types of buildings that are permitted in a location, their height, and how they may be used
D) The amount of rent a building may generate

2. 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.

3. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Mutual release
B) Acknowledgment
C) Waiver
D) Notice of fulfillment

4. A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?

A) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.
B) The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.
C) The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
D) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.

5. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A) The salesperson must verify the rates and terms of lease for the property.
B) The salesperson must verify the previous tenant's lease rates and terms.
C) The salesperson must verify the zoning information for the industrial property.
D) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.

Solutions: