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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Real Estate Transactions | - Commercial property transaction principles
|
Humber College Exam 4: Invigilated Theory Sample Questions:
The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:
- A. Liabilities
- B. Assets
- C. Net operating income
- D. Shareholder's equity
Correct Answer: C 🗳️
A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?
- A. A list of customers who have purchased products in the last 60 months or since the business was acquired.
- B. A list of equipment, chattels, and fixtures that are included with the business.
- C. A statement of the expenses for the business for the past year or since the business was acquired.
- D. An income statement for the past 12 months or since the business was acquired.
Correct Answer: D 🗳️
Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?
- A. An Ontario Land Surveyor can be hired to measure the space.
- B. An architect can be hired to measure the space.
- C. Space should be measured in accordance with BOMA standards.
- D. The original plans should be used to determine the size of a unit.
Correct Answer: D 🗳️
When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?
- A. Include the current tax assessment as a schedule of the agreement.
- B. Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.
- C. Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
- D. Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
Correct Answer: C 🗳️
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. Some trucks may need to park on the property overnight.
- B. Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
- C. Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
- D. Businesses need to transport materials to and from the site.
Correct Answer: A 🗳️
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