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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is representing a buyer client in the purchase of a fully tenanted mixed-use building. The agreement of purchase and sale will be in the name of a corporation owned by the buyer and several other shareholders. Which of the following statements is correct regarding the signing of this agreement of purchase and sale?

A) A major shareholder of the company must sign and date over their printed name.
B) The buyer must sign and date below the printed name of the corporation.
C) The general partner of the company must sign and date below the printed name of the limited company.
D) An authorized signing officer of the company must sign and date over the words: "I haveauthority to bind the corporation" and below the printed registered name.

2. 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) Light industrial use usually results in more noise and heavier traffic.
C) Heavy industrial use can produce more pollution than other commercial activities.
D) Clay production is an example of light industrial use.

3. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The landlord and tenant may agree to split the deposit.
B) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
C) The tenant can have the deposit back without signing a mutual release as it is not their fault.
D) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.

4. When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

A) Include the current tax assessment as a schedule of the agreement.
B) Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.
C) Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
D) Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.

5. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
B) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
C) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
D) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.

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