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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
B) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
C) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
D) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

2. A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A) Change the completion date by using a notice of fulfillment.
B) Change the completion date by using an amendment to the agreement of purchase and sale.
C) Change the completion date by using a waiver.
D) A change is not necessary because the damage is out of the control of the buyer or the seller.

3. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for verifying the soil condition or type that is five days in length.
B) A conditional time period for a property inspection that is 30 business days in length.
C) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
D) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.

4. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?

A) Environmental site assessments
B) Private mortgage form
C) Telephone bills
D) Income verification documents

5. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?

A) Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
B) Businesses need to transport materials to and from the site.
C) Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
D) Some trucks may need to park on the property overnight.

Solutions: