Humber College PREX-1060A Exam : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

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. 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.
B. 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.
C. 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.
D. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.

Question 2

Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A. The original plans should be used to determine the size of a unit.
B. An Ontario Land Surveyor can be hired to measure the space.
C. An architect can be hired to measure the space.
D. Space should be measured in accordance with BOMA standards.

Question 3

A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A. Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
B. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
C. Confirm the buyer's intended use adheres to all municipal zoning requirements
D. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection

Question 4

A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A. The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
B. The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
C. There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
D. If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.

Question 5

A salesperson discusses with a buyer the potential advantages of purchasing brownfields for redevelopment.
What is NOT an advantage for the buyer of a brownfield property?

A. Brownfield properties can often be purchased at well below their potential market value.
B. An owner who rehabilitates a brownfield property can receive tax incentives.
C. The contaminants in brownfields contain precious metals that can be sold to earn additional income.
D. Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.

Solutions: