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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A) A stable internet connection
B) Sufficient lighting
C) A high voltage and ampere supply
D) A proper ventilation system

2. In regard to cash flow into and out of a business, which of the following is correct?

A) Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.
B) Sales proceeds cash flow does not affect investor decisions.
C) Operating cash flow can be positive or negative.
D) Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.

3. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Amount of advertising and publicity
B) Price trend for detached homes in nearby neighborhoods
C) Access to raw materials used in the region
D) Proximity to museums and historical sites

4. 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) 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.
B) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
C) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
D) Remuneration can be calculated based on the difference between the listing price and the actual rental price.

5. A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

A) A legal consultant who specializes in evicting residential tenants
B) A zoning specialist in the city's planning department
C) A consultant in a financial institution
D) An appraiser with Accredited Appraiser Canadian Institute (AACI) designation

Solutions: