PREX-1060A Exam Training Practice Tests (Humber College Exam 4: Invigilated Theory)]

Question 1

Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

A. A registered right of way that blocks the buyer's intended use of the property B. The seller is not entitled to transfer title to the property for some reason C. The property's use doesn't comply with municipal zoning bylaws D. Liens and encumbrances that are registered against the property

Correct Answer: C

Question 2

Which of the following is most likely to be a factor in an appraisal for an industrial property?

A. Price trend for detached homes in nearby neighborhoods B. Access to raw materials used in the region C. Proximity to museums and historical sites D. Amount of advertising and publicity

Correct Answer: B

Question 3

A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?

A. A statement of the expenses for the business for the past year or since the business was acquired. B. A list of equipment, chattels, and fixtures that are included with the business. C. An income statement for the past 12 months or since the business was acquired. D. A list of customers who have purchased products in the last 60 months or since the business was acquired.

Correct Answer: C

Question 4

A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A. A list of fixtures included in the sale B. A profit and loss statement for the real estate brokerage for the preceding 12 months C. A list of chattels excluded in the sale D. A statement of the assets and liabilities of the brokerage

Correct Answer: A

Question 5

A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A. The developer will be responsible for registering the declaration and description and creating the plan and vision for the property. B. The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors. C. The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting. D. The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.

Correct Answer: A

Question 6

A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A. The municipality will take the number of available parking spaces and divide it by the property's gross leasable area. B. The municipality will take the number of available parking spaces and divide it by the property's net leasable area. C. The municipality will take the property's gross leasable area and divide it by the number of available parking spaces. D. The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

Correct Answer: C

Question 7

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. Acknowledgment B. Waiver C. Mutual release D. Notice of fulfillment

Correct Answer: B

Question 8

A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund B. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection C. Confirm the buyer's intended use adheres to all municipal zoning requirements D. Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business

Correct Answer: C

Question 9

Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A. An architect can be hired to measure the space. B. The original plans should be used to determine the size of a unit. C. An Ontario Land Surveyor can be hired to measure the space. D. Space should be measured in accordance with BOMA standards.

Correct Answer: B

Question 10

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

Correct Answer: D

Humber College Exam 4: Invigilated Theory - PREX-1060A Exam Practice Test