Actual PREX-1060A Exam Recently Updated Questions with Free Demo
Free Humber College PREX-1060A Exam Questions Self-Assess Preparation
NEW QUESTION # 61
A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?
- A. Municipalities have zoning bylaws that divide the city into different land uses or zones.
- B. Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
- C. New commercial construction and redevelopment must comply with zoning bylaws.
- D. Zoning bylaws specify the permitted land uses throughout a municipality.
Answer: B
NEW QUESTION # 62
When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?
- A. What is the construction cost of the building?
- B. Is the ownership of the building a corporation or a partnership?
- C. Is inventory included in the sale of this business?
- D. Is there any easement on the property?
Answer: C
NEW QUESTION # 63
A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?
- A. Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
- B. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
- C. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
- D. Confirm the buyer's intended use adheres to all municipal zoning requirements
Answer: D
NEW QUESTION # 64
A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?
- A. Fitting rooms
- B. Kitchens/lunchrooms
- C. Boardrooms, private offices, and workstations
- D. Storage
Answer: A
NEW QUESTION # 65
The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?
- A. Contacting contractors for quotes for repairing or replacing equipment.
- B. Reviewing whether the technical components have been recently replaced or upgraded.
- C. Learning what types of equipment are in the building and having a general understanding of their age and condition.
- D. Ensuring inspections are being carried out as required.
Answer: A
NEW QUESTION # 66
Which of the following is a risk associated with investing in commercial real estate?
- A. The fact that rent, leased space, and building size are fixed
- B. The relative lack of capital growth during the holdover period
- C. The insufficiency of cash flow during the holding period
- D. The relative lack of liquidity
Answer: D
NEW QUESTION # 67
Many industrial users install one or more cranes on their properties to move heavy items. Which type of industrial crane has an arm attached at an angle to a rotating mast that permits 360-degree swiveling around that mast?
- A. Gantry crane
- B. Bridge crane
- C. Overhead crane
- D. Jib crane
Answer: D
NEW QUESTION # 68
Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?
- A. The seller is not entitled to transfer title to the property for some reason
- B. A registered right of way that blocks the buyer's intended use of the property
- C. The property's use doesn't comply with municipal zoning bylaws
- D. Liens and encumbrances that are registered against the property
Answer: C
NEW QUESTION # 69
A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?
- A. A description of the premises
- B. The names of all the tenant's suppliers
- C. The commencement date of the lease
- D. The names of all parties to the lease
Answer: B
NEW QUESTION # 70
There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?
- A. A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
- B. There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
- C. Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.
- D. If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
Answer: D
NEW QUESTION # 71
A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?
- A. The salesperson should advise the buyer to consider the price of their products.
- B. The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.
- C. The salesperson should advise the buyer to consider the size of their products.
- D. The salesperson should advise the buyer to consider their business's predicted monthly inventory.
Answer: A
NEW QUESTION # 72
Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?
- A. The Board can dismiss complaints if the disturbances are the result of normal farm practices.
- B. The Board can conduct hearings that are heard by a minimum of five board members.
- C. The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
- D. The Board can order farmers to modify practices for consistency with normal farm practices.
Answer: B
NEW QUESTION # 73
There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?
- A. The purchase price
- B. The date of the agreement of purchase and sale
- C. The irrevocability clause
- D. The balance due clause
Answer: B
NEW QUESTION # 74
Which of the following accurately describes a landlord's commercial property insurance coverage?
- A. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
- B. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
- C. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
- D. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.
Answer: C
NEW QUESTION # 75
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. $60,000
- B. $120,000
- C. $130,000
- D. $80,000
Answer: D
NEW QUESTION # 76
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. Industrial properties have a lower capital gains tax at disposition.
- C. Industrial properties have a number of large, credit-worthy tenants and long-term leases.
- D. Good transportation and distribution corridors do not matter to industrial investors and their tenants.
Answer: C
NEW QUESTION # 77
Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?
- A. The BOMA standards provide methods of measuring industrial buildings only.
- B. The BOMA standards provide procedures to measure rentable areas only.
- C. The BOMA standards provide methods of measuring office buildings only.
- D. The BOMA standards are complex.
Answer: C
NEW QUESTION # 78
A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?
- A. Tell the seller the usable size is 80 percent of the rentable size.
- B. Use a laser measuring device to take the measurements.
- C. Add a disclaimer to protect the seller from any discrepancy.
- D. Recommend the services of third-party professionals to measure it.
Answer: D
NEW QUESTION # 79
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