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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

A) $80,000
B) $130,000
C) $60,000
D) $120,000

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

3. 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

4. The key mechanical components of commercial buildings include heating, cooling, and electrical systems.
Which of the following tasks is NOT usually completed by the salesperson?

A) Ensuring inspections are being carried out as required.
B) Reviewing whether the technical components have been recently replaced or upgraded.
C) Contacting contractors for quotes for repairing or replacing equipment.
D) Learning what types of equipment are in the building and having a general understanding of their age and condition.

5. When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A) Goodwill
B) Residence
C) Barns and sheds
D) Fixed equipment

Solutions: