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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A) The tenant's signage is considered a trade fixture and shall remain the tenant's property.
B) The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
C) The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.
D) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

2. 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) Repair the damage and deduct the cost from the rent.
B) Meet with the property manager, review the lease, and determine a course of action.
C) Terminate the lease and start looking for a new space.
D) Contact a lawyer and immediately start a legal action for damages.

3. A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

A) If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
B) The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
C) The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
D) If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.

4. Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?

A) The total remuneration payable for a 20-year lease
B) The number of sprinklers required in every unit
C) The total area measurements
D) The maximum floor load of every unit

5. A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A) A list of chattels excluded in the sale
B) A list of fixtures included in the sale
C) A statement of the assets and liabilities of the brokerage
D) A profit and loss statement for the real estate brokerage for the preceding 12 months

Solutions: