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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) Architectural drawings are source documents.
B) A photocopy of a source document can be used to verify information.
C) Other types of source documents include surveys and tax records.
D) If changes are made to source documents, they are still valid if you have the original document.

2. If a retail unit has a usable area of 3,482 sq. ft. with a conversion rate of 1.1235, what would the tenant's rentable area be?

A) The retail tenant's rentable area would be 3,912 sq.ft.
B) The retail tenant's rentable area would be 3,073 sq.ft.
C) The retail tenant's rentable area would be 3,482 sq. ft.
D) The retail tenant's rentable area would be 3,605 sq. ft.

3. 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?

A) The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
B) 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.
C) The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.
D) 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.

4. A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A) Change the completion date by using an amendment to the agreement of purchase and sale.
B) Change the completion date by using a notice of fulfillment.
C) A change is not necessary because the damage is out of the control of the buyer or the seller.
D) Change the completion date by using a waiver.

5. When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A) Fixed equipment
B) Residence
C) Goodwill
D) Barns and sheds

Solutions: