Humber College PREX-1060A

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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 buyer determining that no limitations or restrictions affecting the continued use of the property exist.
B) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.
C) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.
D) 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.

2. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Terminate the transaction and disengage from it.
B) Obtain the remuneration owed.
C) Conduct an analysis of why the transaction will not be carried out.
D) Pass the transaction to the broker of record so that the broker will take care of it.

3. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) Parking may be impacted by zoning requirements.
B) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
C) Parking may be impacted by the municipality's parking bylaw.
D) There may be minimum width and depth requirements for parking spaces.

4. 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 must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
B) The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.
C) The tenant's signage is considered a trade fixture and shall remain the tenant's property.
D) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

5. 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?

A) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The tenant can have the deposit back without signing a mutual release as it is not their fault.
D) The landlord and tenant may agree to split the deposit.

Solutions: