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PREX-1060A PDF Practice Q&A's
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- Total Questions: 108
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Humber College Exam 4: Invigilated Theory Sample Questions:
1. 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) Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.
B) Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
C) Potential to recover capital through refinancing is an advantage of owning commercial real estate.
D) Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.
2. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?
A) Private mortgage form
B) Telephone bills
C) Environmental site assessments
D) Income verification documents
3. The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:
A) Net operating income
B) Shareholder's equity
C) Liabilities
D) Assets
4. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?
A) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
B) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
C) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
D) The buyer can use the same amendment to ask for a change of the closing date.
5. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?
A) Traffic counts
B) Financial health of the company
C) Surrounding uses
D) Demographics
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |
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