Humber College RESP Pre-Registration Phase PREX-1060A

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question #1
What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A. Use the R/U factor to calculate the figures
B. Use a laser measuring tool to take the measurements
C. Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
D. Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

Question #2
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. 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.
B. The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
C. There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
D. The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.

Question #3
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. $80,000
B. $120,000
C. $60,000
D. $130,000

Question #4
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. Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
B. Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
C. 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.
D. Include the current tax assessment as a schedule of the agreement.

Question #5
A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

A. It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.
B. It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant's usable area.
C. It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.
D. It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

Solutions: