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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) All new commercial properties must undergo an ESA before construction begins.
B) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
C) An ESA is not required if the buyer is purchasing the industrial property for their own use.
D) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.

2. A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A) The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
B) A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
C) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
D) The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.

3. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
B) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
C) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
D) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.

4. A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A) The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.
B) The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.
C) The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
D) The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.

5. The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

A) Ensuring inspections are being carried out as required.
B) Learning what types of equipment are in the building and having a general understanding of their age and condition.
C) Reviewing whether the technical components have been recently replaced or upgraded.
D) Contacting contractors for quotes for repairing or replacing equipment.

Solutions: