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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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) Income verification documents
D) Telephone bills

2. While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?

A) The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.
B) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
C) The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.
D) The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.

3. A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?

A) It does not matter; mortgaging does not affect cash flow and yields.
B) The investor is afforded the opportunity to enhance yield.
C) The success of ventures often rests in the availability and suitability of financing.
D) Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.

4. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A) Surrounding uses
B) Demographics
C) Financial health of the company
D) Traffic counts

5. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

A) Recommend the services of third-party professionals to measure it.
B) Use a laser measuring device to take the measurements.
C) Add a disclaimer to protect the seller from any discrepancy.
D) Tell the seller the usable size is 80 percent of the rentable size.

Solutions: