[Apr 26, 2025] Ultimate PREX-1060A Guide to Prepare Free Latest Humber College Practice Tests Dumps
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NEW QUESTION # 60
A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?
- A. Fitting rooms
- B. Kitchens/lunchrooms
- C. Storage
- D. Boardrooms, private offices, and workstations
Answer: A
NEW QUESTION # 61
A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?
- A. Gross lease
- B. Percentage lease
- C. Net lease
- D. Triple net lease
Answer: B
NEW QUESTION # 62
A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?
- A. The options for late payments are the same for every lender.
- B. Each lender has their own method for dealing with late payments.
- C. There are no penalties for late payments in a commercial mortgage.
- D. Penalties for late payments will be added to the monthly rent.
Answer: B
NEW QUESTION # 63
A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:
- A. Parking may be impacted by zoning requirements.
- B. There may be minimum width and depth requirements for parking spaces.
- C. Parking may be impacted by the municipality's parking bylaw.
- D. Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
Answer: D
NEW QUESTION # 64
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?
- A. $120,000
- B. $60,000
- C. $130,000
- D. $80,000
Answer: D
NEW QUESTION # 65
When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?
- A. Include the current tax assessment as a schedule of the agreement.
- B. Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.
- C. Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
- D. Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
Answer: D
NEW QUESTION # 66
What is the best indicator of a strong office market?
- A. Low rental rates and many concessions
- B. The absorption rate, net absorption rate, and rising rental rates
- C. When tenants have lots of options because of the amount of available space at favorable rates
- D. The number of free months given to new and renewing tenants by landlords in the office marketplace
Answer: B
NEW QUESTION # 67
There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?
- A. Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.
- B. A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
- C. If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
- D. There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
Answer: C
NEW QUESTION # 68
Which of the following statements about industrial building components is correct?
- A. Flat roofs are designed to be flat to hold water.
- B. Bay depth is an important consideration when determining the layout of an industrial process.
- C. Loading docks are only used to off-load products or raw materials.
- D. Floor load refers to the weight of the building during construction.
Answer: B
NEW QUESTION # 69
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. It contains records pertaining to a property's financial condition.
- B. Requesting an RSC is mandatory in all real estate transactions.
- C. With other documents, it will inform the buyer of any legal issues attached to the title.
- D. It is not a material fact; thus, it is a formality for the buyer to get it.
Answer: C
NEW QUESTION # 70
Finish the sentence: The Employment Standards Act:
- A. Protects the rights of workers of a business that is being sold.
- B. Regulates trade names.
- C. Regulates matters involving ownership of a business.
- D. Specifies the terms of a business partnership agreement.
Answer: A
NEW QUESTION # 71
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 discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
- 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 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 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.
Answer: B
NEW QUESTION # 72
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 describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.
- B. 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.
- C. 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.
- D. 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.
Answer: B
NEW QUESTION # 73
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 ask the owner of the garage whether they have thought about selling their property at this time.
- B. The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
- 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 include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.
Answer: B
NEW QUESTION # 74
A seller provides you with architectural drawings of their building. Which statement is NOT correct?
- A. Architectural drawings are source documents.
- B. Other types of source documents include surveys and tax records.
- C. If changes are made to source documents, they are still valid if you have the original document.
- D. A photocopy of a source document can be used to verify information.
Answer: C
NEW QUESTION # 75
Which statement about an Environmental Site Assessment (ESA) is NOT correct?
- A. An ESA is not required if the buyer is purchasing the industrial property for their own use.
- B. No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
- C. All new commercial properties must undergo an ESA before construction begins.
- D. The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
Answer: A
NEW QUESTION # 76
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.
Answer: C
NEW QUESTION # 77
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. Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
- B. Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.
- C. Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.
- D. Potential to recover capital through refinancing is an advantage of owning commercial real estate.
Answer: B
NEW QUESTION # 78
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 are more durable than tilt-up panels.
- B. Both tilt-up panels and pre-cast panels can lower construction costs.
- C. Both tilt-up panels and pre-cast panels are formed off-site.
- D. Pre-cast panels cost much more than tilt-up panels.
Answer: B
NEW QUESTION # 79
A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?
- A. The landlord and tenant may agree to split the deposit.
- B. The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
- C. The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
- D. The tenant can have the deposit back without signing a mutual release as it is not their fault.
Answer: D
NEW QUESTION # 80
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