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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?

A) Ensure there is parking and repair space available for commercial trucks.
B) Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.
C) Confirm that the contract of the condominium property management company has been renewed for at least 10 years.
D) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.

2. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A) Financial health of the company
B) Surrounding uses
C) Traffic counts
D) Demographics

3. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
B) The buyer can use the same amendment to ask for a change of the closing date.
C) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
D) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.

4. When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A) The farmer sells the farm to a relative.
B) The farm is sold to a corporation and the HST is included in the selling price.
C) The farmer uses a smaller portion of the farm for a residence.
D) The farm has been used for personal use.

5. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
B) Use a laser measuring tool to take the measurements
C) Use the R/U factor to calculate the figures
D) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

Solutions: