Humber College PREX-1060A Exam Questions Free Practice Test

Viewing page 2 out of 4 pages

Viewing questions 11-20 out of questions

Questions # 11:

A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

Options:

The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.

The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.

The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.

Expert Solution

Questions # 12:

Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

Options:

The salesperson must verify the zoning information for the industrial property.

The salesperson must verify the previous tenant's lease rates and terms.

The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.

The salesperson must verify the rates and terms of lease for the property.

Expert Solution

Questions # 13:

In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

Options:

Exchange of legal documents

Review of financial statements

Review of the Agreement of Purchase and Sale

Remedy of title issues

Expert Solution

Questions # 14:

A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

Options:

A list of fixtures included in the sale

A profit and loss statement for the real estate brokerage for the preceding 12 months

A list of chattels excluded in the sale

A statement of the assets and liabilities of the brokerage

Expert Solution

Questions # 15:

A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

Options:

The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.

A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.

State that the buyer is assuming all animals on an "as is" basis.

State that the seller will continue the day-to-day farm operations until closing.

Expert Solution

Questions # 16:

A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

Options:

The salesperson is responsible for negotiating the tenant's stock delivery window.

Should a delivery truck arrive during an emergency, the property manager must be available.

Stock delivery cannot be restricted in a commercial agreement to lease.

The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.

Expert Solution

Questions # 17:

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

Options:

Use the R/U factor to calculate the figures

Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures

Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

Use a laser measuring tool to take the measurements

Expert Solution

Questions # 18:

An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

Options:

Serving separate waivers

Serving one waiver

Serving separate notices of fulfillment

Serving one notice of fulfillment

Expert Solution

Questions # 19:

A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

Options:

The salesperson should explain that to achieve capital growth, the client should be a long-term investor.

The salesperson should explain that a better return on investment will be achieved with rising interest rates.

The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.

The salesperson should explain that the client should always consider being a short-term investor.

Expert Solution

Questions # 20:

Which of the following is most likely to be a factor in an appraisal for an industrial property?

Options:

Amount of advertising and publicity

Proximity to museums and historical sites

Price trend for detached homes in nearby neighborhoods

Access to raw materials used in the region

Expert Solution

Viewing page 2 out of 4 pages

Viewing questions 11-20 out of questions

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