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Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Commercial Real Estate Transactions- Commercial leasing and property analysis
  • 1. Tenant representation and CMA analysis
    • 2. Office/industrial/retail property characteristics
      • 3. Management fees and operating costs comparison
        - Commercial property transaction principles
        • 1. Offer and contract structure in commercial transactions
          • 2. Taxation considerations in commercial resale
            • 3. Due diligence and conditional clauses
              - Property valuation and market evaluation
              • 1. Investment considerations for industrial/commercial assets
                • 2. Market value interpretation
                  • 3. Highest and best use analysis
                    - Regulatory and professional obligations
                    • 1. Professional standards in representation
                      • 2. Disclosure of latent defects

                        Humber College Exam 4: Invigilated Theory Sample Questions:

                        A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?

                        • A. Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
                        • B. Businesses need to transport materials to and from the site.
                        • C. Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
                        • D. Some trucks may need to park on the property overnight.
                        Reveal Solution  Discussion  0

                        Correct Answer: D  🗳️

                        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. Kitchens/lunchrooms
                        • B. Boardrooms, private offices, and workstations
                        • C. Fitting rooms
                        • D. Storage
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

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

                        • A. Use a laser measuring device to take the measurements.
                        • B. Recommend the services of third-party professionals to measure it.
                        • C. Add a disclaimer to protect the seller from any discrepancy.
                        • D. Tell the seller the usable size is 80 percent of the rentable size.
                        Reveal Solution  Discussion  0

                        Correct Answer: B  🗳️

                        Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

                        • A. A design-build arrangement is commonly associated with a seller's market.
                        • B. A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.
                        • C. A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.
                        • D. A design-build arrangement is a sale/leaseback arrangement.
                        Reveal Solution  Discussion  0

                        Correct Answer: B  🗳️

                        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 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 have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
                        Reveal Solution  Discussion  0

                        Correct Answer: D  🗳️

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