1. Home
  2. Humber College
  3. RESP Pre-Registration Phase
  4. PREX-1060A
  5. Exam 4: Invigilated Theory Exam Questions and Answers

Pass the Humber College RESP Pre-Registration Phase PREX-1060A Questions and answers with CertsForce

 Humber College Exams      Go to Exam Detail      Get Premium Access
Viewing page 1 out of 4 pages
Viewing questions 1-10 out of questions
Questions # 1:

A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

Options:
A.

The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.

B.

The tenant's signage is considered a trade fixture and shall remain the tenant's property.

C.

The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant’s expense.

D.

The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

Questions # 2:

In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

Options:
A.

An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

B.

Every new commercial property must undergo an ESA prior to construction.

C.

ESAs are regulated under the Canadian Environmental Protection Act.

D.

Local building departments use ESAs as the basis for changes to municipal zoning bylaws.

Questions # 3:

While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?

Options:
A.

The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.

B.

The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.

C.

The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.

D.

The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.

Questions # 4:

A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

Options:
A.

The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.

B.

The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.

C.

The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.

D.

The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.

Questions # 5:

Which of the following is a reason why an owner might consider redeveloping an industrial property?

Options:
A.

The cost of relocating is low.

B.

A similar building can be bought at a low price.

C.

The existing building no longer provides the highest and best use of the site.

D.

A redevelopment will seriously disrupt the current operation.

Questions # 6:

A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

Options:
A.

Acknowledgment

B.

Notice of fulfillment

C.

Mutual release

D.

Waiver

Questions # 7:

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?

Options:
A.

Is there any easement on the property?

B.

Is the ownership of the building a corporation or a partnership?

C.

What is the construction cost of the building?

D.

Is inventory included in the sale of this business?

Questions # 8:

A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

Options:
A.

Change the completion date by using a waiver.

B.

Change the completion date by using a notice of fulfillment.

C.

Change the completion date by using an amendment to the agreement of purchase and sale.

D.

A change is not necessary because the damage is out of the control of the buyer or the seller.

Questions # 9:

A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

Options:
A.

A conditional time period for a property inspection that is 30 business days in length.

B.

A conditional time period for obtaining an approval for a zoning change that is seven business days in length.

C.

A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.

D.

A conditional time period for verifying the soil condition or type that is five days in length.

Questions # 10:

A salesperson is drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:

Options:
A.

Create a business plan

B.

Gather, organize, and verify all pertinent information

C.

Identify third-party professionals

D.

Estimate time frames required for due diligence and other offer conditions

Viewing page 1 out of 4 pages
Viewing questions 1-10 out of questions