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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 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.
D) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.

2. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Obtain the remuneration owed.
B) Pass the transaction to the broker of record so that the broker will take care of it.
C) Conduct an analysis of why the transaction will not be carried out.
D) Terminate the transaction and disengage from it.

3. When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A) Industrial properties have a lower capital gains tax at disposition.
B) Higher mortgage interest rates will provide a better return on investment.
C) Industrial properties have a number of large, credit-worthy tenants and long-term leases.
D) Good transportation and distribution corridors do not matter to industrial investors and their tenants.

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

5. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) Architectural drawings are source documents.
B) Other types of source documents include surveys and tax records.
C) A photocopy of a source document can be used to verify information.
D) If changes are made to source documents, they are still valid if you have the original document.

Solutions: