Humber College PREX-1060A Exam : Exam 4: Invigilated Theory Exam

  • Exam Code: PREX-1060A
  • Exam Name: Exam 4: Invigilated Theory Exam
  • Updated: Sep 29, 2026
  • Q & A: 108 Questions and Answers

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Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Topic 1: Commercial Real Estate Transactions- Commercial property transaction principles
  • 1. Taxation considerations in commercial resale
    • 2. Due diligence and conditional clauses
      • 3. Offer and contract structure in commercial transactions
        - Commercial leasing and property analysis
        • 1. Management fees and operating costs comparison
          • 2. Office/industrial/retail property characteristics
            • 3. Tenant representation and CMA analysis
              - Regulatory and professional obligations
              • 1. Disclosure of latent defects
                • 2. Professional standards in representation
                  - Property valuation and market evaluation
                  • 1. Highest and best use analysis
                    • 2. Market value interpretation
                      • 3. Investment considerations for industrial/commercial assets

                        Humber College Exam 4: Invigilated Theory Sample Questions:

                        Question #1

                        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. Confirm the buyer's intended use adheres to all municipal zoning requirements
                        • C. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
                        • D. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
                        Reveal Solution  Discussion  0

                        Correct Answer: B  🗳️

                        Question #2

                        Which of the following is NOT determined by zoning bylaws?

                        • A. Where buildings and other structures may be located
                        • B. The types of buildings that are permitted in a location, their height, and how they may be used
                        • C. The amount of rent a building may generate
                        • D. Lot dimensions and parking requirements
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

                        Question #3

                        A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

                        • A. Each lender has their own method for dealing with late payments.
                        • B. There are no penalties for late payments in a commercial mortgage.
                        • C. The options for late payments are the same for every lender.
                        • D. Penalties for late payments will be added to the monthly rent.
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

                        Question #4

                        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:

                        • A. Serving separate waivers
                        • B. Serving one waiver
                        • C. Serving one notice of fulfillment
                        • D. Serving separate notices of fulfillment
                        Reveal Solution  Discussion  0

                        Correct Answer: D  🗳️

                        Question #5

                        A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

                        • A. A legal consultant who specializes in evicting residential tenants
                        • B. A consultant in a financial institution
                        • C. An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
                        • D. A zoning specialist in the city's planning department
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

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