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Humber College PREX-1060A Practice Test Questions Answers

Exam Code: PREX-1060A (Updated 120 Q&As)
 Exam Name: Exam 4: Invigilated Theory Exam
 Last Update: 07-Dec-2025
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  • Single Choice: 120 Q&A's

    • PREX-1060A Overview

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    PREX-1060A Questions and Answers

    Question # 1

    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.

    Contacting contractors for quotes for repairing or replacing equipment.

    C.

    Reviewing whether the technical components have been recently replaced or upgraded.

    D.

    Learning what types of equipment are in the building and having a general understanding of their age and condition.

    Question # 2

    A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

    A.

    The salesperson should explain that to achieve capital growth, the client should be a long-term investor.

    B.

    The salesperson should explain that a better return on investment will be achieved with rising interest rates.

    C.

    The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.

    D.

    The salesperson should explain that the client should always consider being a short-term investor.

    Question # 3

    A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?

    A.

    Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.

    B.

    Ensure there is parking and repair space available for commercial trucks.

    C.

    Confirm that the contract of the condominium property management company has been renewed for at least 10 years.

    D.

    Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.

    Question # 4

    A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

    A.

    A description of the premises

    B.

    The names of all the tenant's suppliers

    C.

    The commencement date of the lease

    D.

    The names of all parties to the lease

    Question # 5

    A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with a schedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estate transaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items of the office building were to be included and which were to be excluded. Which of the following is NOT an accurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

    A.

    The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.

    B.

    The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.

    C.

    The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.

    D.

    The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.

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