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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following statements regarding heavy industrial use and light industrial use is correct?

A) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
B) Heavy industrial use can produce more pollution than other commercial activities.
C) Clay production is an example of light industrial use.
D) Light industrial use usually results in more noise and heavier traffic.

2. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Conduct an analysis of why the transaction will not be carried out.
B) Obtain the remuneration owed.
C) Pass the transaction to the broker of record so that the broker will take care of it.
D) Terminate the transaction and disengage from it.

3. A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

A) The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.
B) The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.
C) The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
D) The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.

4. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
B) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
C) The buyer can use the same amendment to ask for a change of the closing date.
D) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.

5. 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) $120,000
B) $80,000
C) $60,000
D) $130,000

Solutions: