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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

A) The salesperson should advise the buyer to consider the size of their products.
B) The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.
C) The salesperson should advise the buyer to consider their business's predicted monthly inventory.
D) The salesperson should advise the buyer to consider the price of their products.

2. If a retail unit has a usable area of 3,482 sq. ft. with a conversion rate of 1.1235, what would the tenant's rentable area be?

A) The retail tenant's rentable area would be 3,605 sq. ft.
B) The retail tenant's rentable area would be 3,912 sq.ft.
C) The retail tenant's rentable area would be 3,482 sq. ft.
D) The retail tenant's rentable area would be 3,073 sq.ft.

3. A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A) The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
B) The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
C) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
D) The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.

4. A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A) The tenant's signage is considered a trade fixture and shall remain the tenant's property.
B) The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
C) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.
D) The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.

5. When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A) What is the construction cost of the building?
B) Is there any easement on the property?
C) Is the ownership of the building a corporation or a partnership?
D) Is inventory included in the sale of this business?

Solutions: