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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Property Types | - Industrial Properties
|
| Topic 2: Property Development and Land Use | - Development Analysis
|
| Topic 3: Financial Analysis | - Business Financial Review
|
| Topic 4: Commercial Property Transactions | - Commercial Leasing
|
Humber College Exam 4: Invigilated Theory Sample Questions:
1. A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?
A) Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.
B) Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
C) Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
D) Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
2. A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?
A) Requesting an RSC is mandatory in all real estate transactions.
B) It is not a material fact; thus, it is a formality for the buyer to get it.
C) With other documents, it will inform the buyer of any legal issues attached to the title.
D) It contains records pertaining to a property's financial condition.
3. 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) Learning what types of equipment are in the building and having a general understanding of their age and condition.
B) Reviewing whether the technical components have been recently replaced or upgraded.
C) Ensuring inspections are being carried out as required.
D) Contacting contractors for quotes for repairing or replacing equipment.
4. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?
A) Obtain the remuneration owed.
B) Terminate the transaction and disengage from it.
C) Pass the transaction to the broker of record so that the broker will take care of it.
D) Conduct an analysis of why the transaction will not be carried out.
5. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?
A) Contact a lawyer and immediately start a legal action for damages.
B) Terminate the lease and start looking for a new space.
C) Meet with the property manager, review the lease, and determine a course of action.
D) Repair the damage and deduct the cost from the rent.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: C |
