Exam Code: PREX-1060A
Exam Name: Exam 4: Invigilated Theory Exam
Certification Provider: Humber College
Corresponding Certification: RESP Pre-Registration Phase
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Humber College PREX-1060A Exam Syllabus Topics:

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

Humber College Exam 4: Invigilated Theory Sample Questions:

A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

  • A. Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
  • B. Remuneration can be calculated based on the difference between the listing price and the actual rental price.
  • C. Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
  • D. The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.
Answer: D

A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

  • A. There may be minimum width and depth requirements for parking spaces.
  • B. Parking may be impacted by zoning requirements.
  • C. Parking may be impacted by the municipality's parking bylaw.
  • D. Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
Answer: D

A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

  • A. A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
  • B. A conditional time period for a property inspection that is 30 business days in length.
  • C. A conditional time period for obtaining an approval for a zoning change that is seven business days in length.
  • D. A conditional time period for verifying the soil condition or type that is five days in length.
Answer: A

A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

  • A. Pre-cast panels cost much more than tilt-up panels.
  • B. Pre-cast panels are more durable than tilt-up panels.
  • C. Both tilt-up panels and pre-cast panels can lower construction costs.
  • D. Both tilt-up panels and pre-cast panels are formed off-site.
Answer: C

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.
Answer: A

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