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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question 1

Many industrial users install one or more cranes on their properties to move heavy items. Which type of industrial crane has an arm attached at an angle to a rotating mast that permits 360-degree swiveling around that mast?

A. Jib crane
B. Bridge crane
C. Overhead crane
D. Gantry crane

Question 2

A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
B. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
C. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
D. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.

Question 3

Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

A. Liens and encumbrances that are registered against the property
B. The seller is not entitled to transfer title to the property for some reason
C. The property's use doesn't comply with municipal zoning bylaws
D. A registered right of way that blocks the buyer's intended use of the property

Question 4

A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?

A. Businesses need to transport materials to and from the site.
B. Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
C. Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
D. Some trucks may need to park on the property overnight.

Question 5

A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

A. Penalties for late payments will be added to the monthly rent.
B. The options for late payments are the same for every lender.
C. Each lender has their own method for dealing with late payments.
D. There are no penalties for late payments in a commercial mortgage.

Solutions: