PREX-1060A exam dumps

Humber College PREX-1060A Value Package

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  • Exam Code: PREX-1060A
  • Exam Name: Exam 4: Invigilated Theory Exam
  • No. of Questions: 108 Questions and Answers
  • Updated: Sep 10, 2026

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Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Topic 1: Commercial Property Types- Retail and Office Properties
  • 1. Retail Condominiums
  • 2. Office Buildings
  • 3. Property Management Considerations
- Industrial Properties
  • 1. Industrial Site Evaluation
  • 2. Heavy Industrial Uses
  • 3. Light Industrial Uses
Topic 2: Commercial Property Transactions- Commercial Property Sales
  • 1. Commercial Agreements of Purchase and Sale
  • 2. Property Valuation
  • 3. Due Diligence Procedures
- Commercial Leasing
  • 1. Tenant Representation
  • 2. Lease Structures
  • 3. Management Fees
Topic 3: Property Development and Land Use- Taxation and Regulatory Considerations
  • 1. Municipal Compliance
  • 2. Assessment Issues
  • 3. Property Tax Adjustments
- Development Analysis
  • 1. Environmental Due Diligence
  • 2. Highest and Best Use
  • 3. Site Servicing Requirements
Topic 4: Financial Analysis- Commercial Financing
  • 1. Mortgage Terms and Conditions
  • 2. Late Payment Provisions
  • 3. Commercial Mortgages
- Business Financial Review
  • 1. Investment Performance Evaluation
  • 2. Cash Flow Analysis
  • 3. Audited and Unaudited Financial Statements

Humber College Exam 4: Invigilated Theory Sample Questions:

A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

  • A. Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.
  • B. Potential to recover capital through refinancing is an advantage of owning commercial real estate.
  • C. Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
  • D. Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

  • A. The office building next door has an overflow parking lot.
  • B. There is a residential neighborhood and playground nearby.
  • C. The neighboring property includes a restaurant, a dental clinic, and a law office.
  • D. There is vacant land nearby with a small pond with discolored standing water.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

When representing a client who is selling a business, a salesperson must be aware of concerns related to compliance. Which of the following is NOT a compliance concern?

  • A. The seller discloses all liabilities of the business in writing
  • B. The seller provides insufficient due diligence documents
  • C. Income and expense statements contain misrepresentations
  • D. The condition of goods, chattels, and fixtures cannot be verified
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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 estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
  • 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. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
  • D. 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.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?

  • A. The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.
  • B. The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.
  • C. The cost approach is typically used to appraise income-generating properties.
  • D. The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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