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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. In regard to equipment at an industrial property that is being shown for sale, a salesperson representing a buyer should do all of the following, EXCEPT:

A) Contact the seller's representative prior to the showing to gain awareness of safety and compliance requirements.
B) Ensure chattels or fixtures are not included in the sale or negotiated for in the agreement.
C) Ensure they are informed as to whether the equipment shown will be relevant for the buyer's intended use.
D) Obtain clarification as to which equipment seen during the showing will be included in the purchase price of the property.

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

3. A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

A) The office building next door has an overflow parking lot.
B) There is vacant land nearby with a small pond with discolored standing water.
C) There is a residential neighborhood and playground nearby.
D) The neighboring property includes a restaurant, a dental clinic, and a law office.

4. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Net lease
B) Gross lease
C) Triple net lease
D) Percentage lease

5. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Proximity to museums and historical sites
B) Access to raw materials used in the region
C) Amount of advertising and publicity
D) Price trend for detached homes in nearby neighborhoods

Solutions: