Humber College PREX-1060A Practice Test Pdf Exam Material [Q53-Q67]

NO.53 Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

The salesperson must verify the zoning information for the industrial property.

The salesperson must verify the previous tenant’s lease rates and terms.

The salesperson must verify whether the tenant’s intended use for the industrial property is permitted under the zoning bylaw.

The salesperson must verify the rates and terms of lease for the property.

NO.54 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?

Telephone bills

Private mortgage form

Income verification documents

Environmental site assessments

NO.55 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?

Change the completion date by using a waiver.

Change the completion date by using a notice of fulfillment.

Change the completion date by using an amendment to the agreement of purchase and sale.

A change is not necessary because the damage is out of the control of the buyer or the seller.

NO.56 Sometimes, transactions do not close. When a transaction won’t be completed, what should a salesperson try to do as soon as possible?

Conduct an analysis of why the transaction will not be carried out.

Pass the transaction to the broker of record so that the broker will take care of it.

Obtain the remuneration owed.

Terminate the transaction and disengage from it.

NO.57 Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

Agrees to pay additional rent for a gross lease.

Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.

Cannot pay rent to the property manager and must pay directly to the property owner.

NO.58 A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer’s salesperson use to remove the condition?

Acknowledgment

Notice of fulfillment

Mutual release

Waiver

NO.59 What is the best indicator of a strong office market?

The absorption rate, net absorption rate, and rising rental rates

When tenants have lots of options because of the amount of available space at favorable rates

Low rental rates and many concessions

The number of free months given to new and renewing tenants by landlords in the office marketplace

NO.60 Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A design-build arrangement is a sale/leaseback arrangement.

A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer’s specifications.

A design-build arrangement is commonly associated with a seller’s market.

NO.61 Land developers purchase land for commercial, industrial, and residential projects. Tracts of land larger than five acres but smaller than 10 acres may appeal to land developers for various reasons. Which of the following is one of the reasons?

They are a good size for modern 18-hole golf courses.

They can be used for newly planned subdivisions.

They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.

The developer cannot find a building lot to build a detached home.

NO.62 A salesperson is representing a buyer client in the purchase of a fully tenanted mixed-use building. The agreement of purchase and sale will be in the name of a corporation owned by the buyer and several other shareholders. Which of the following statements is correct regarding the signing of this agreement of purchase and sale?

The general partner of the company must sign and date below the printed name of the limited company.

The buyer must sign and date below the printed name of the corporation.

An authorized signing officer of the company must sign and date over the words: “I haveauthority to bind the corporation” and below the printed registered name.

A major shareholder of the company must sign and date over their printed name.

NO.63 Which of the following is most likely to be a factor in an appraisal for an industrial property?

Amount of advertising and publicity

Proximity to museums and historical sites

Price trend for detached homes in nearby neighborhoods

Access to raw materials used in the region

NO.64 A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson’s actions related to negotiating chattels, fixtures, and rental items?

The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.

The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.

The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.

The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.

NO.65 Which of the following is NOT determined by zoning bylaws?

The types of buildings that are permitted in a location, their height, and how they may be used

Lot dimensions and parking requirements

The amount of rent a building may generate

Where buildings and other structures may be located

NO.66 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?

Meet with the property manager, review the lease, and determine a course of action.

Repair the damage and deduct the cost from the rent.

Contact a lawyer and immediately start a legal action for damages.

Terminate the lease and start looking for a new space.

NO.67 A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

Zoning bylaws specify the permitted land uses throughout a municipality.

Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.

New commercial construction and redevelopment must comply with zoning bylaws.

Municipalities have zoning bylaws that divide the city into different land uses or zones.