Humber College PREX-1060A : Exam 4: Invigilated Theory Exam

  • Exam Code: PREX-1060A
  • Exam Name: Exam 4: Invigilated Theory Exam
  • Updated: Sep 25, 2026     Q & A: 108 Questions and Answers

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Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Commercial Property Transactions- Commercial Property Sales
  • 1. Property Valuation
  • 2. Due Diligence Procedures
  • 3. Commercial Agreements of Purchase and Sale
- Commercial Leasing
  • 1. Management Fees
  • 2. Lease Structures
  • 3. Tenant Representation
Financial Analysis- Commercial Financing
  • 1. Commercial Mortgages
  • 2. Late Payment Provisions
  • 3. Mortgage Terms and Conditions
- Business Financial Review
  • 1. Investment Performance Evaluation
  • 2. Cash Flow Analysis
  • 3. Audited and Unaudited Financial Statements
Commercial Property Types- Retail and Office Properties
  • 1. Office Buildings
  • 2. Retail Condominiums
  • 3. Property Management Considerations
- Industrial Properties
  • 1. Industrial Site Evaluation
  • 2. Light Industrial Uses
  • 3. Heavy Industrial Uses
Property Development and Land Use- Taxation and Regulatory Considerations
  • 1. Property Tax Adjustments
  • 2. Municipal Compliance
  • 3. Assessment Issues
- Development Analysis
  • 1. Site Servicing Requirements
  • 2. Environmental Due Diligence
  • 3. Highest and Best Use

Humber College Exam 4: Invigilated Theory Sample Questions:

Question #1

A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

  • A. A clause to ensure the truck parking spaces and turning radius are sufficient
  • B. A clause to obtain the necessary mortgage amount
  • C. A clause to test the quality of the underground water source
  • D. A clause to check the condition of the trucks and vans
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Finish the sentence: The Employment Standards Act:

  • A. Specifies the terms of a business partnership agreement.
  • B. Regulates trade names.
  • C. Protects the rights of workers of a business that is being sold.
  • D. Regulates matters involving ownership of a business.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

  • A. Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.
  • B. Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.
  • C. Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
  • D. Potential to recover capital through refinancing is an advantage of owning commercial real estate.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

  • A. The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
  • B. The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
  • C. The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
  • D. The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

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 3,482 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 3,912 sq.ft.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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