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

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) A photocopy of a source document can be used to verify information.
B) Architectural drawings are source documents.
C) Other types of source documents include surveys and tax records.
D) If changes are made to source documents, they are still valid if you have the original document.

2. A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

A) With other documents, it will inform the buyer of any legal issues attached to the title.
B) It contains records pertaining to a property's financial condition.
C) Requesting an RSC is mandatory in all real estate transactions.
D) It is not a material fact; thus, it is a formality for the buyer to get it.

3. A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
B) A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
C) The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
D) The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.

4. A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

A) Should a delivery truck arrive during an emergency, the property manager must be available.
B) The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
C) Stock delivery cannot be restricted in a commercial agreement to lease.
D) The salesperson is responsible for negotiating the tenant's stock delivery window.

5. A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

A) The rent increase can be any amount.
B) The rent increase cannot be higher than the guideline set by the government.
C) The rent increase can be challenged by the Landlord and Tenant Board.
D) The rent increase cannot be more than the Consumer Price Index (CPI).

Solutions: