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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. Which of the following is a reason why an owner might consider redeveloping an industrial property?

A) The cost of relocating is low.
B) A redevelopment will seriously disrupt the current operation.
C) A similar building can be bought at a low price.
D) The existing building no longer provides the highest and best use of the site.

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

4. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?

A) Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
B) Businesses need to transport materials to and from the site.
C) Some trucks may need to park on the property overnight.
D) Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.

5. When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A) Is the ownership of the building a corporation or a partnership?
B) Is inventory included in the sale of this business?
C) What is the construction cost of the building?
D) Is there any easement on the property?

Solutions: