Summer Special 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: bestdeal

Free Humber College PREX-1060A Practice Exam with Questions & Answers

Questions 1

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?

Options:
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.

Humber College PREX-1060A Premium Access
Questions 2

A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

Options:
A.

The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

B.

The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.

C.

The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed-use building.

D.

The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

Questions 3

Which of the following statements about economic development offices is NOT correct?

Options:
A.

Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.

B.

Economic development offices provide background information on local, provincial, and federal research and development incentives.

C.

Economic development offices have important resources for those seeking suitable commercial sites for business operations.

D.

Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

Questions 4

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?

Options:
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.

Questions 5

A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

Options:
A.

The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.

B.

A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.

C.

State that the buyer is assuming all animals on an "as is" basis.

D.

State that the seller will continue the day-to-day farm operations until closing.

Questions 6

A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

Options:
A.

$80,000

B.

$60,000

C.

$120,000

D.

$130,000

Questions 7

A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

Options:
A.

The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

B.

The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.

C.

The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.

D.

The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.

Questions 8

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?

Options:
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.

Questions 9

A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

Options:
A.

A consultant in a financial institution

B.

A zoning specialist in the city's planning department

C.

An appraiser with Accredited Appraiser Canadian Institute (AACI) designation

D.

A legal consultant who specializes in evicting residential tenants

Questions 10

A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

Options:
A.

If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.

B.

The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one-year warranty coverage from the occupancy date.

C.

There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.

D.

The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.

Exam Code: PREX-1060A
Certification Provider: Humber College
Exam Name: Exam 4: Invigilated Theory Exam
Last Update: Jul 15, 2025
Questions: 120
Humber College Free Access
Get Humber College Full Access

Humber College Free Exams
Humber College Free Exams