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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

A) It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.
B) It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.
C) It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.
D) It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant's usable area.

2. A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

A) Remuneration can be calculated based on the difference between the listing price and the actual rental price.
B) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
C) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
D) The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.

3. When representing a client who is selling a business, a salesperson must be aware of concerns related to compliance. Which of the following is NOT a compliance concern?

A) Income and expense statements contain misrepresentations
B) The seller provides insufficient due diligence documents
C) The condition of goods, chattels, and fixtures cannot be verified
D) The seller discloses all liabilities of the business in writing

4. Which of the following is a reason why an owner might consider redeveloping an industrial property?

A) A similar building can be bought at a low price.
B) The cost of relocating is low.
C) The existing building no longer provides the highest and best use of the site.
D) A redevelopment will seriously disrupt the current operation.

5. If a retail unit has a usable area of 3,482 sq. ft. with a conversion rate of 1.1235, what would the tenant's rentable area be?

A) The retail tenant's rentable area would be 3,605 sq. ft.
B) The retail tenant's rentable area would be 3,482 sq. ft.
C) The retail tenant's rentable area would be 3,073 sq.ft.
D) The retail tenant's rentable area would be 3,912 sq.ft.

Solutions: