[2025] Use Valid Exam PREX-1060A by ExamsTorrent Books For Free Website [Q47-Q66]

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[2025] Use Valid Exam PREX-1060A by ExamsTorrent Books For Free Website

Free RESP Pre-Registration Phase PREX-1060A Official Cert Guide PDF Download

NO.47 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?

The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.

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.

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.

The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.

NO.48 Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A design-build arrangement is a sale/leaseback arrangement.

A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer’s specifications.

A design-build arrangement is commonly associated with a seller’s market.

NO.49 In regard to equipment at an industrial property that is being shown for sale, a salesperson representing a buyer should do all of the following, EXCEPT:

Contact the seller’s representative prior to the showing to gain awareness of safety and compliance requirements.

Ensure they are informed as to whether the equipment shown will be relevant for the buyer’s intended use.

Ensure chattels or fixtures are not included in the sale or negotiated for in the agreement.

Obtain clarification as to which equipment seen during the showing will be included in the purchase price of the property.

NO.50 A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

The salesperson should explain that to achieve capital growth, the client should be a long-term investor.

The salesperson should explain that a better return on investment will be achieved with rising interest rates.

The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.

The salesperson should explain that the client should always consider being a short-term investor.

NO.51 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.

NO.52 A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement’s signage clause?

The tenant’s signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.

The tenant’s signage is considered a trade fixture and shall remain the tenant’s property.

The tenant’s signage shall be immediately removed at the end of their lease term(s) at the tenant’s expense.

The tenant’s signage, from approvals to installation and ongoing maintenance, shall be at thetenant’s own expense.

NO.53 A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.

Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.

Remuneration can be calculated based on the difference between the listing price and the actual rental price.

Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.

NO.54 A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

Requesting an RSC is mandatory in all real estate transactions.

It is not a material fact; thus, it is a formality for the buyer to get it.

With other documents, it will inform the buyer of any legal issues attached to the title.

It contains records pertaining to a property’s financial condition.

NO.55 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.

NO.56 Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A stable internet connection

Sufficient lighting

A high voltage and ampere supply

A proper ventilation system

NO.57 A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?

Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.

Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.

Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.

Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.

NO.58 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.

NO.59 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

NO.60 A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.

A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.

State that the buyer is assuming all animals on an “as is” basis.

State that the seller will continue the day-to-day farm operations until closing.

NO.61 A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

Zoning bylaws specify the permitted land uses throughout a municipality.

Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.

New commercial construction and redevelopment must comply with zoning bylaws.

Municipalities have zoning bylaws that divide the city into different land uses or zones.

NO.62 A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer’s salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer’s own expense, and to the buyer’s satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.

The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.

The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.

The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.

NO.63 Which of the following statements about industrial building components is correct?

Bay depth is an important consideration when determining the layout of an industrial process.

Loading docks are only used to off-load products or raw materials.

Flat roofs are designed to be flat to hold water.

Floor load refers to the weight of the building during construction.

NO.64 In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

Exchange of legal documents

Review of financial statements

Review of the Agreement of Purchase and Sale

Remedy of title issues

NO.65 A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

If the information on the building’s utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.

If the information on the subject building’s utilities is available, then a potential buyer will not put a condition in the offer.

The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.

The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.

NO.66 When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

Goodwill

Fixed equipment

Residence

Barns and sheds