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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following statements about economic development offices is NOT correct?

A) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.
B) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
C) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
D) Economic development offices provide background information on local, provincial, and federal research and development incentives.

2. A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

A) It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.
B) It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant's usable area.
C) It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.
D) It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.

3. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A) Terminate the lease and start looking for a new space.
B) Repair the damage and deduct the cost from the rent.
C) Meet with the property manager, review the lease, and determine a course of action.
D) Contact a lawyer and immediately start a legal action for damages.

4. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
B) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
C) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
D) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.

5. 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) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.
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) Ensure there is parking and repair space available for commercial trucks.

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