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

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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 Building Owners and Managers Association (BOMA) standards is correct?

A) The BOMA standards provide methods of measuring industrial buildings only.
B) The BOMA standards are complex.
C) The BOMA standards provide methods of measuring office buildings only.
D) The BOMA standards provide procedures to measure rentable areas only.

2. 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?

A) 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.
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 whether they have thought about selling their property at this time.
D) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.

3. Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?

A) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
B) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
C) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
D) A clause for the buyer to review the leases only after all conditions have been waived and accepted

4. Which of the following practices maintains the stability and durability of a commercial property?

A) Delaying improvements to the property to save costs
B) Keeping good tenants
C) Increasing the base rent and additional rent in a slow economy
D) Replacing old tenants with new tenants that pay much higher rent

5. Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?

A) The total area measurements
B) The number of sprinklers required in every unit
C) The maximum floor load of every unit
D) The total remuneration payable for a 20-year lease

Solutions: