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

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

A. There are no penalties for late payments in a commercial mortgage.
B. Each lender has their own method for dealing with late payments.
C. The options for late payments are the same for every lender.
D. Penalties for late payments will be added to the monthly rent.

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

Question 3

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?

A. Stock delivery cannot be restricted in a commercial agreement to lease.
B. The salesperson is responsible for negotiating the tenant's stock delivery window.
C. Should a delivery truck arrive during an emergency, the property manager must be available.
D. The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.

Question 4

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 cannot be higher than the guideline set by the government.
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 can be any amount.

Question 5

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.

Solutions: