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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following practices maintains the stability and durability of a commercial property?

A) Replacing old tenants with new tenants that pay much higher rent
B) Increasing the base rent and additional rent in a slow economy
C) Delaying improvements to the property to save costs
D) Keeping good tenants

2. Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A) The buyer replaces the seller as the owner of the corporation.
B) The buyer assumes all assets and accepts all liabilities of the business.
C) The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.
D) The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.

3. A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A) Both tilt-up panels and pre-cast panels can lower construction costs.
B) Both tilt-up panels and pre-cast panels are formed off-site.
C) Pre-cast panels are more durable than tilt-up panels.
D) Pre-cast panels cost much more than tilt-up panels.

4. 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 latent defects known to the seller of the office building with the seller and disclose them to a buyer.
B) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
C) 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.
D) 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.

5. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A) Financial health of the company
B) Demographics
C) Traffic counts
D) Surrounding uses

Solutions: