Humber College PREX-1060A : Exam 4: Invigilated Theory Exam
- Exam Code: PREX-1060A
- Exam Name: Exam 4: Invigilated Theory Exam
- Updated: Sep 19, 2026
- Q & A: 108 Questions and Answers
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Commercial property transaction principles
|
Humber College Exam 4: Invigilated Theory Sample Questions:
A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?
- A. The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
- B. Should a delivery truck arrive during an emergency, the property manager must be available.
- C. The salesperson is responsible for negotiating the tenant's stock delivery window.
- D. Stock delivery cannot be restricted in a commercial agreement to lease.
Correct Answer: D 🗳️
A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?
- A. Meet with the property manager, review the lease, and determine a course of action.
- B. Terminate the lease and start looking for a new space.
- C. Repair the damage and deduct the cost from the rent.
- D. Contact a lawyer and immediately start a legal action for damages.
Correct Answer: A 🗳️
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?
- A. The farmer uses a smaller portion of the farm for a residence.
- B. The farm has been used for personal use.
- C. The farm is sold to a corporation and the HST is included in the selling price.
- D. The farmer sells the farm to a relative.
Correct Answer: B 🗳️
A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?
- A. Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
- B. Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.
- C. Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
- D. Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
Correct Answer: D 🗳️
A salesperson discusses with a buyer the potential advantages of purchasing brownfields for redevelopment.
What is NOT an advantage for the buyer of a brownfield property?
- A. Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.
- B. Brownfield properties can often be purchased at well below their potential market value.
- C. The contaminants in brownfields contain precious metals that can be sold to earn additional income.
- D. An owner who rehabilitates a brownfield property can receive tax incentives.
Correct Answer: C 🗳️
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