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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

A) The BOMA standards provide procedures to measure rentable areas only.
B) The BOMA standards are complex.
C) The BOMA standards provide methods of measuring industrial buildings only.
D) The BOMA standards provide methods of measuring office buildings only.

2. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Waiver
B) Acknowledgment
C) Notice of fulfillment
D) Mutual release

3. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The tenant can have the deposit back without signing a mutual release as it is not their fault.
B) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
C) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
D) The landlord and tenant may agree to split the deposit.

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

5. A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

A) Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
B) Confirm the buyer's intended use adheres to all municipal zoning requirements
C) Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
D) Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business

Solutions: