Exam Name: Exam 4: Invigilated Theory Exam
Certification Provider: Humber College
Corresponding Certification: RESP Pre-Registration Phase
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Real Estate Transactions | - Property valuation and market evaluation
|
Humber College Exam 4: Invigilated Theory Sample Questions:
Which of the following accurately describes a landlord's commercial property insurance coverage?
- A. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
- B. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
- C. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
- D. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.
Correct Answer: C 🗳️
A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?
- A. The office building next door has an overflow parking lot.
- B. There is a residential neighborhood and playground nearby.
- C. The neighboring property includes a restaurant, a dental clinic, and a law office.
- D. There is vacant land nearby with a small pond with discolored standing water.
Correct Answer: D 🗳️
Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?
- A. The BOMA standards provide procedures to measure rentable areas only.
- B. The BOMA standards are complex.
- C. The BOMA standards provide methods of measuring office buildings only.
- D. The BOMA standards provide methods of measuring industrial buildings only.
Correct Answer: C 🗳️
A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?
- A. The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
- B. The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.
- C. The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
- D. The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
Correct Answer: D 🗳️
A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?
- A. Contact a lawyer and immediately start a legal action for damages.
- B. Repair the damage and deduct the cost from the rent.
- C. Terminate the lease and start looking for a new space.
- D. Meet with the property manager, review the lease, and determine a course of action.
Correct Answer: D 🗳️
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