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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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) 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.
B) 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.
C) 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.
D) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.

2. Both the landlord and the tenant have responsibilities in the management of their relationship as per the commercial lease agreement. Which of the following is NOT an accurate statement regarding the roles and responsibilities of landlords and tenants as per the Commercial Agreement to Lease?

A) Not all commercial leases require the landlord to perform repairs and maintenance.
B) All commercial leases require that tenants keep everything in and about the property, including all points of entry and exit, in good repair at all times.
C) The landlord must address their tenants' issues in a timely manner in general but more so when the issue can result in serious and costly consequences.
D) Tenants are obligated to ensure they have adequate tenant insurance for their property.

3. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Pass the transaction to the broker of record so that the broker will take care of it.
B) Obtain the remuneration owed.
C) Conduct an analysis of why the transaction will not be carried out.
D) Terminate the transaction and disengage from it.

4. Which of the following statements about economic development offices is NOT correct?

A) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
B) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
C) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.
D) Economic development offices provide background information on local, provincial, and federal research and development incentives.

5. A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

A) Each lender has their own method for dealing with late payments.
B) The options for late payments are the same for every lender.
C) Penalties for late payments will be added to the monthly rent.
D) There are no penalties for late payments in a commercial mortgage.

Solutions: