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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Financial Analysis | - Commercial Financing
|
| Topic 2: Commercial Property Transactions | - Commercial Property Sales
|
| Topic 3: Property Development and Land Use | - Development Analysis
|
| Topic 4: Commercial Property Types | - Retail and Office Properties
|
Humber College Exam 4: Invigilated Theory Sample Questions:
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 property's gross leasable area and divide it by the number of available parking spaces.
- D. The municipality will take the number of available parking spaces and divide it by the property's net leasable area.
Correct Answer: C 🗳️
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?
- A. 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.
- B. The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
- C. The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
- D. 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.
Correct Answer: B 🗳️
A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?
- A. Use a laser measuring device to take the measurements.
- B. Add a disclaimer to protect the seller from any discrepancy.
- C. Tell the seller the usable size is 80 percent of the rentable size.
- D. Recommend the services of third-party professionals to measure it.
Correct Answer: D 🗳️
Which statement about an Environmental Site Assessment (ESA) is NOT correct?
- A. No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
- B. An ESA is not required if the buyer is purchasing the industrial property for their own use.
- C. The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
- D. All new commercial properties must undergo an ESA before construction begins.
Correct Answer: B 🗳️
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?
- A. The farm is sold to a corporation and the HST is included in the selling price.
- B. The farm has been used for personal use.
- C. The farmer sells the farm to a relative.
- D. The farmer uses a smaller portion of the farm for a residence.
Correct Answer: B 🗳️
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