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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 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.
B) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
C) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
D) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.

2. A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A) The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
B) The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.
C) The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.
D) The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.

3. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) All new commercial properties must undergo an ESA before construction begins.
B) An ESA is not required if the buyer is purchasing the industrial property for their own use.
C) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
D) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.

4. A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A) A list of fixtures included in the sale
B) A list of chattels excluded in the sale
C) A statement of the assets and liabilities of the brokerage
D) A profit and loss statement for the real estate brokerage for the preceding 12 months

5. 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) 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.
C) Tenants are obligated to ensure they have adequate tenant insurance for their property.
D) 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.

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