Pass Humber College PREX-1060A Exam Info and Free Practice Test [Q45-Q64]

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Pass Humber College PREX-1060A Exam Info and Free Practice Test

New 2025 Latest Questions PREX-1060A Dumps – Use Updated Humber College Exam

NEW QUESTION 45
A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.

It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant’s usable area.

It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.

It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

NEW QUESTION 46
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?

The general partner of the company must sign and date below the printed name of the limited company.

The buyer must sign and date below the printed name of the corporation.

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.

A major shareholder of the company must sign and date over their printed name.

NEW QUESTION 47
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?

The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.

The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.

The tenant can have the deposit back without signing a mutual release as it is not their fault.

The landlord and tenant may agree to split the deposit.

NEW QUESTION 48
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?

$80,000

$60,000

$120,000

$130,000

NEW QUESTION 49
A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer’s industrial business?

Businesses need to transport materials to and from the site.

Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.

Some trucks may need to park on the property overnight.

Incoming trucks could have difficulty if there is a lack of on-site trailer storage.

NEW QUESTION 50
Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

Liens and encumbrances that are registered against the property

The property’s use doesn’t comply with municipal zoning bylaws

A registered right of way that blocks the buyer’s intended use of the property

The seller is not entitled to transfer title to the property for some reason

NEW QUESTION 51
In regard to cash flow into and out of a business, which of the following is correct?

Operating cash flow can be positive or negative.

Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.

Sales proceeds cash flow does not affect investor decisions.

Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.

NEW QUESTION 52
When representing a client who is selling a business, a salesperson must be aware of concerns related to compliance. Which of the following is NOT a compliance concern?

The condition of goods, chattels, and fixtures cannot be verified

Income and expense statements contain misrepresentations

The seller provides insufficient due diligence documents

The seller discloses all liabilities of the business in writing

NEW QUESTION 53
The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

Ensuring inspections are being carried out as required.

Contacting contractors for quotes for repairing or replacing equipment.

Reviewing whether the technical components have been recently replaced or upgraded.

Learning what types of equipment are in the building and having a general understanding of their age and condition.

NEW QUESTION 54
A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A conditional time period for a property inspection that is 30 business days in length.

A conditional time period for obtaining an approval for a zoning change that is seven business days in length.

A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.

A conditional time period for verifying the soil condition or type that is five days in length.

NEW QUESTION 55
Which of the following is a characteristic of main street retail?

Comprises a blend of old and new stores

Must be located in a small, older community

Consists of newer, free-standing buildings only

Structure size typically ranges from 100,000 to 130,000 square feet

NEW QUESTION 56
Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

The BOMA standards are complex.

The BOMA standards provide methods of measuring industrial buildings only.

The BOMA standards provide methods of measuring office buildings only.

The BOMA standards provide procedures to measure rentable areas only.

NEW QUESTION 57
Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

Agrees to pay additional rent for a gross lease.

Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.

Cannot pay rent to the property manager and must pay directly to the property owner.

NEW QUESTION 58
A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A surveyor’s certificate for the unit

An opinion from the seller’s lawyer

A sketch of the seller’s floor layout

An opinion from the property manager

NEW QUESTION 59
A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.

Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.

Potential to recover capital through refinancing is an advantage of owning commercial real estate.

Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.

NEW QUESTION 60
A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A list of fixtures included in the sale

A profit and loss statement for the real estate brokerage for the preceding 12 months

A list of chattels excluded in the sale

A statement of the assets and liabilities of the brokerage

NEW QUESTION 61
A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

The rent increase cannot be higher than the guideline set by the government.

The rent increase cannot be more than the Consumer Price Index (CPI).

The rent increase can be any amount.

The rent increase can be challenged by the Landlord and Tenant Board.

NEW QUESTION 62
If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

They carry on a farming business generating a net profit of $100,000.

They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.

They are Canadian citizens or permanent residents of Canada.

They submit the appropriate application semi-annually.

NEW QUESTION 63
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 clause for the buyer to review the leases only after all conditions have been waived and accepted

A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement

A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing

A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price

NEW QUESTION 64
A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

The salesperson is responsible for negotiating the tenant’s stock delivery window.

Should a delivery truck arrive during an emergency, the property manager must be available.

Stock delivery cannot be restricted in a commercial agreement to lease.

The salesperson is responsible for addressing site access and exit in the tenant’s agreement to lease.