Humber College PREX-1060A : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to ensure the truck parking spaces and turning radius are sufficient
B) A clause to test the quality of the underground water source
C) A clause to obtain the necessary mortgage amount
D) A clause to check the condition of the trucks and vans

3. When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A) The farmer uses a smaller portion of the farm for a residence.
B) The farm has been used for personal use.
C) The farmer sells the farm to a relative.
D) The farm is sold to a corporation and the HST is included in the selling price.

4. Which of the following is a risk associated with investing in commercial real estate?

A) The relative lack of capital growth during the holdover period
B) The relative lack of liquidity
C) The insufficiency of cash flow during the holding period
D) The fact that rent, leased space, and building size are fixed

5. 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 statement of the assets and liabilities of the brokerage
B) A profit and loss statement for the real estate brokerage for the preceding 12 months
C) A list of fixtures included in the sale
D) A list of chattels excluded in the sale

Solutions: