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PREX-1060A Humber College Exam 4: Invigilated Theory Exam Free Practice Exam Questions (2025 Updated)

Prepare effectively for your Humber College PREX-1060A Exam 4: Invigilated Theory Exam certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 120 questions

Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A.

A stable internet connection

B.

Sufficient lighting

C.

A high voltage and ampere supply

D.

A proper ventilation system

A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A.

Confirm the buyer's intended use adheres to all municipal zoning requirements

B.

Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection

C.

Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller’s business

D.

Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund

Which of the following is NOT determined by zoning bylaws?

A.

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

B.

Lot dimensions and parking requirements

C.

The amount of rent a building may generate

D.

Where buildings and other structures may be located

All of the following aspects of a commercial property may affect its eligibility for Leadership in Energy and Environmental Design (LEED) certification, EXCEPT:

A.

Energy efficiency

B.

Innovative elements

C.

Sustainability

D.

Vacancy rate

An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A.

Serving separate waivers

B.

Serving one waiver

C.

Serving separate notices of fulfillment

D.

Serving one notice of fulfillment

Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

A.

The BOMA standards are complex.

B.

The BOMA standards provide methods of measuring industrial buildings only.

C.

The BOMA standards provide methods of measuring office buildings only.

D.

The BOMA standards provide procedures to measure rentable areas only.

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?

A.

Acknowledgment

B.

Notice of fulfillment

C.

Mutual release

D.

Waiver

Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

A.

Agrees to pay additional rent for a gross lease.

B.

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

C.

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

D.

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

There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?

A.

The date of the agreement of purchase and sale

B.

The balance due clause

C.

The irrevocability clause

D.

The purchase price

Which of the following practices maintains the stability and durability of a commercial property?

A.

Replacing old tenants with new tenants that pay much higher rent

B.

Increasing the base rent and additional rent in a slow economy

C.

Keeping good tenants

D.

Delaying improvements to the property to save costs

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 gross leasable area.

B.

The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

C.

The municipality will take the number of available parking spaces and divide it by the property’s net leasable area.

D.

The municipality will take the property’s gross leasable area and divide it by the number of available parking spaces.

A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

A.

Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.

B.

Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.

C.

Potential to recover capital through refinancing is an advantage of owning commercial real estate.

D.

Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.

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 attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.

B.

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.

C.

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.

D.

The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.

A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

A.

The rent increase cannot be higher than the guideline set by the government.

B.

The rent increase cannot be more than the Consumer Price Index (CPI).

C.

The rent increase can be any amount.

D.

The rent increase can be challenged by the Landlord and Tenant Board.

A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A.

Pre-cast panels cost much more than tilt-up panels.

B.

Both tilt-up panels and pre-cast panels can lower construction costs.

C.

Pre-cast panels are more durable than tilt-up panels.

D.

Both tilt-up panels and pre-cast panels are formed off-site.

A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings. This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

A.

It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.

B.

It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant’s usable area.

C.

It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.

D.

It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

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Total 120 questions
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