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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A. The municipality will take the number of available parking spaces and divide it by the property's net leasable area.
B. The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.
C. The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
D. The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

Question 2

A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A. The tenant can have the deposit back without signing a mutual release as it is not their fault.
B. The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C. The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
D. The landlord and tenant may agree to split the deposit.

Question 3

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 profit and loss statement for the real estate brokerage for the preceding 12 months
D. A statement of the assets and liabilities of the brokerage

Question 4

A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A. The tenant's signage is considered a trade fixture and shall remain the tenant's property.
B. The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.
C. The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
D. The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

Question 5

A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

A. A zoning specialist in the city's planning department
B. A consultant in a financial institution
C. An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
D. A legal consultant who specializes in evicting residential tenants

Solutions: