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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
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 is considered a trade fixture and shall remain the tenant's property.
D) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

2. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) If changes are made to source documents, they are still valid if you have the original document.
B) Architectural drawings are source documents.
C) A photocopy of a source document can be used to verify information.
D) Other types of source documents include surveys and tax records.

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

4. A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

A) The options for late payments are the same for every lender.
B) There are no penalties for late payments in a commercial mortgage.
C) Penalties for late payments will be added to the monthly rent.
D) Each lender has their own method for dealing with late payments.

5. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
B) Parking may be impacted by the municipality's parking bylaw.
C) Parking may be impacted by zoning requirements.
D) There may be minimum width and depth requirements for parking spaces.

Solutions: