Humber College Exam 4: Invigilated Theory - PREX-1060A Free Exam Questions [2026]

QUESTION NO: 1
When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A. Is there any easement on the property?

B. What is the construction cost of the building?

C. Is the ownership of the building a corporation or a partnership?

D. Is inventory included in the sale of this business?

Discussion 0

Correct Answer: D Vote an answer

QUESTION NO: 2
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?

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

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

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

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

Discussion 0

Correct Answer: B Vote an answer

QUESTION NO: 3
The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:

A. Assets

B. Liabilities

C. Net operating income

D. Shareholder's equity

Discussion 0

Correct Answer: C Vote an answer

QUESTION NO: 4
Which of the following is NOT determined by zoning bylaws?

A. The types of buildings that are permitted in a location, their height, and how they may be used

B. Where buildings and other structures may be located

C. Lot dimensions and parking requirements

D. The amount of rent a building may generate

Discussion 0

Correct Answer: D Vote an answer

QUESTION NO: 5
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?

A. The rent increase can be any amount.

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

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

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

Discussion 0

Correct Answer: A Vote an answer

QUESTION NO: 6
In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A. ESAs are regulated under the Canadian Environmental Protection Act.

B. Every new commercial property must undergo an ESA prior to construction.

C. An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

D. Local building departments use ESAs as the basis for changes to municipal zoning bylaws.

Discussion 0

Correct Answer: B Vote an answer

QUESTION NO: 7
A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

A. Pre-cast panels are more durable than tilt-up panels.

B. Both tilt-up panels and pre-cast panels are formed off-site.

C. Pre-cast panels cost much more than tilt-up panels.

D. Both tilt-up panels and pre-cast panels can lower construction costs.

Discussion 0

Correct Answer: D Vote an answer

QUESTION NO: 8
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?

A. 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.

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

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

D. 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.

Discussion 0

Correct Answer: C Vote an answer

QUESTION NO: 9
Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A. The salesperson must verify the zoning information for the industrial property.

B. The salesperson must verify the rates and terms of lease for the property.

C. The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.

D. The salesperson must verify the previous tenant's lease rates and terms.

Discussion 0

Correct Answer: D Vote an answer

QUESTION NO: 10
Which of the following is most likely to be a factor in an appraisal for an industrial property?

A. Price trend for detached homes in nearby neighborhoods

B. Amount of advertising and publicity

C. Proximity to museums and historical sites

D. Access to raw materials used in the region

Discussion 0

Correct Answer: D Vote an answer

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