PREX-1060A by Humber College Actual Free Exam Questions And Answers

Question 1

Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A. A design-build arrangement is a sale/leaseback arrangement.

B. A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.

C. A design-build arrangement is commonly associated with a seller's market.

D. A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

Discussion 0

Correct Answer: B Vote an answer

Question 2

Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A. Power stations

B. Chemical manufacturers

C. Petroleum storage and distribution sites

D. Computer training institute

Discussion 0

Correct Answer: D Vote an answer

Question 3

Which of the following is NOT determined by zoning bylaws?

A. Where buildings and other structures may be located

B. The types of buildings that are permitted in a location, their height, and how they may be used

C. The amount of rent a building may generate

D. Lot dimensions and parking requirements

Discussion 0

Correct Answer: C Vote an answer

Question 4

When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A. Higher mortgage interest rates will provide a better return on investment.

B. Good transportation and distribution corridors do not matter to industrial investors and their tenants.

C. Industrial properties have a lower capital gains tax at disposition.

D. Industrial properties have a number of large, credit-worthy tenants and long-term leases.

Discussion 0

Correct Answer: D Vote an answer

Question 5

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

Discussion 0

Correct Answer: A Vote an answer

Question 6

A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A. A surveyor's certificate for the unit

B. An opinion from the property manager

C. An opinion from the seller's lawyer

D. A sketch of the seller's floor layout

Discussion 0

Correct Answer: A Vote an answer

Question 7

A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

A. There is a residential neighborhood and playground nearby.

B. There is vacant land nearby with a small pond with discolored standing water.

C. The neighboring property includes a restaurant, a dental clinic, and a law office.

D. The office building next door has an overflow parking lot.

Discussion 0

Correct Answer: B Vote an answer

Question 8

Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A. A high voltage and ampere supply

B. A proper ventilation system

C. A stable internet connection

D. Sufficient lighting

Discussion 0

Correct Answer: A Vote an answer

Question 9

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. Terminate the lease and start looking for a new space.

B. Repair the damage and deduct the cost from the rent.

C. Contact a lawyer and immediately start a legal action for damages.

D. Meet with the property manager, review the lease, and determine a course of action.

Discussion 0

Correct Answer: D Vote an answer

Humber College Exam 4: Invigilated Theory - PREX-1060A Exam Practice Test

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