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Humber College PREX-1060A Exam : Exam 4: Invigilated Theory Exam
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Commercial property transaction principles
|
Humber College Exam 4: Invigilated Theory Sample Questions:
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?
- A. The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
- B. There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
- C. 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.
- D. The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
Correct Answer: B š³ļø
A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?
- A. Remuneration can be calculated based on the difference between the listing price and the actual rental price.
- B. Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
- C. The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.
- D. Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
Correct Answer: C š³ļø
A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?
- A. A clause to check the condition of the trucks and vans
- B. A clause to obtain the necessary mortgage amount
- C. A clause to test the quality of the underground water source
- D. A clause to ensure the truck parking spaces and turning radius are sufficient
Correct Answer: D š³ļø
A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:
- A. There may be minimum width and depth requirements for parking spaces.
- B. Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
- C. Parking may be impacted by the municipality's parking bylaw.
- D. Parking may be impacted by zoning requirements.
Correct Answer: B š³ļø
Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?
- A. The original plans should be used to determine the size of a unit.
- B. Space should be measured in accordance with BOMA standards.
- C. An architect can be hired to measure the space.
- D. An Ontario Land Surveyor can be hired to measure the space.
Correct Answer: A š³ļø
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