Exam Name: Exam 4: Invigilated Theory Exam
Certification Provider: Humber College
Corresponding Certification: RESP Pre-Registration Phase
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Property Transactions | - Commercial Property Sales
|
| Topic 2: Financial Analysis | - Commercial Financing
|
| Topic 3: Property Development and Land Use | - Development Analysis
|
| Topic 4: Commercial Property Types | - Retail and Office Properties
|
Humber College Exam 4: Invigilated Theory Sample Questions:
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. 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.
- C. The general partner of the company must sign and date below the printed name of the limited company.
- D. The buyer must sign and date below the printed name of the corporation.
Correct Answer: B 🗳️
A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?
- A. The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.
- B. The salesperson should advise the buyer to consider their business's predicted monthly inventory.
- C. The salesperson should advise the buyer to consider the size of their products.
- D. The salesperson should advise the buyer to consider the price of their products.
Correct Answer: D 🗳️
A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?
- A. A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
- B. The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
- C. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
- D. The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
Correct Answer: B 🗳️
There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?
- A. The irrevocability clause
- B. The date of the agreement of purchase and sale
- C. The balance due clause
- D. The purchase price
Correct Answer: B 🗳️
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 number of sprinklers required in every unit
- B. The total remuneration payable for a 20-year lease
- C. The total area measurements
- D. The maximum floor load of every unit
Correct Answer: B 🗳️
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