Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
B) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
C) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
D) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.

2. A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

A) State that the seller will continue the day-to-day farm operations until closing.
B) The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.
C) A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.
D) State that the buyer is assuming all animals on an "as is" basis.

3. Finish the sentence: The Employment Standards Act:

A) Regulates trade names.
B) Specifies the terms of a business partnership agreement.
C) Protects the rights of workers of a business that is being sold.
D) Regulates matters involving ownership of a business.

4. A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A) The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
B) In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
C) Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.
D) The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.

5. A salesperson is drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:

A) Gather, organize, and verify all pertinent information
B) Create a business plan
C) Estimate time frames required for due diligence and other offer conditions
D) Identify third-party professionals

Solutions: