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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to obtain the necessary mortgage amount
B) A clause to test the quality of the underground water source
C) A clause to check the condition of the trucks and vans
D) A clause to ensure the truck parking spaces and turning radius are sufficient

2. The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

A) Ensuring inspections are being carried out as required.
B) Contacting contractors for quotes for repairing or replacing equipment.
C) Reviewing whether the technical components have been recently replaced or upgraded.
D) Learning what types of equipment are in the building and having a general understanding of their age and condition.

3. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Boardrooms, private offices, and workstations
B) Fitting rooms
C) Storage
D) Kitchens/lunchrooms

4. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
B) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
C) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
D) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.

5. A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

A) The rent increase can be challenged by the Landlord and Tenant Board.
B) The rent increase can be any amount.
C) The rent increase cannot be more than the Consumer Price Index (CPI).
D) The rent increase cannot be higher than the guideline set by the government.

Solutions: