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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
B. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
C. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
D. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.

Question 2

Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A. The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
B. The Board can dismiss complaints if the disturbances are the result of normal farm practices.
C. The Board can conduct hearings that are heard by a minimum of five board members.
D. The Board can order farmers to modify practices for consistency with normal farm practices.

Question 3

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 research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
C. 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.
D. The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

Question 4

The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A. Repairs
B. Supervision
C. Operations
D. Depreciation

Question 5

There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?

A. The balance due clause
B. The purchase price
C. The irrevocability clause
D. The date of the agreement of purchase and sale

Solutions: