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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A) Meet with the property manager, review the lease, and determine a course of action.
B) Terminate the lease and start looking for a new space.
C) Contact a lawyer and immediately start a legal action for damages.
D) Repair the damage and deduct the cost from the rent.

2. 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) Penalties for late payments will be added to the monthly rent.
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) There are no penalties for late payments in a commercial mortgage.

3. Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

A) The BOMA standards provide procedures to measure rentable areas only.
B) The BOMA standards are complex.
C) The BOMA standards provide methods of measuring industrial buildings only.
D) The BOMA standards provide methods of measuring office buildings only.

4. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
B) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
C) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
D) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

5. Which of the following is a reason why an owner might consider redeveloping an industrial property?

A) The cost of relocating is low.
B) A redevelopment will seriously disrupt the current operation.
C) A similar building can be bought at a low price.
D) The existing building no longer provides the highest and best use of the site.

Solutions: