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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Property Development and Land Use | - Development Analysis
|
| Topic 2: Financial Analysis | - Business Financial Review
|
| Topic 3: Commercial Property Transactions | - Commercial Leasing
|
| Topic 4: Commercial Property Types | - Industrial Properties
|
Humber College Exam 4: Invigilated Theory Sample Questions:
A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?
- A. Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
- B. Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
- C. Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.
- D. Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
Correct Answer: D 🗳️
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. Waiver
- B. Acknowledgment
- C. Notice of fulfillment
- D. Mutual release
Correct Answer: A 🗳️
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. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
- B. Confirm the buyer's intended use adheres to all municipal zoning requirements
- C. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
- D. Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
Correct Answer: B 🗳️
Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:
- A. Agrees to pay additional rent for a gross lease.
- B. Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.
- C. Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.
- D. Cannot pay rent to the property manager and must pay directly to the property owner.
Correct Answer: B 🗳️
A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?
- A. The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.
- B. The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.
- C. The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
- D. The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.
Correct Answer: B 🗳️
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