Humber College PREX-1060A Q&A - in .pdf

  • PREX-1060A pdf
  • Exam Code: PREX-1060A
  • Exam Name: Exam 4: Invigilated Theory Exam
  • Updated: Sep 09, 2026
  • Q & A: 108 Questions and Answers
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  • Exam Code: PREX-1060A
  • Exam Name: Exam 4: Invigilated Theory Exam
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  • Q & A: 108 Questions and Answers
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PREX-1060A Practice Dumps

Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Topic 1: Commercial Real Estate Transactions- Regulatory and professional obligations
  • 1. Disclosure of latent defects
    • 2. Professional standards in representation
      - Property valuation and market evaluation
      • 1. Investment considerations for industrial/commercial assets
        • 2. Highest and best use analysis
          • 3. Market value interpretation
            - Commercial leasing and property analysis
            • 1. Tenant representation and CMA analysis
              • 2. Office/industrial/retail property characteristics
                • 3. Management fees and operating costs comparison
                  - Commercial property transaction principles
                  • 1. Taxation considerations in commercial resale
                    • 2. Due diligence and conditional clauses
                      • 3. Offer and contract structure in commercial transactions

                        Humber College Exam 4: Invigilated Theory Sample Questions:

                        Question #1

                        A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?

                        • A. A list of customers who have purchased products in the last 60 months or since the business was acquired.
                        • B. A statement of the expenses for the business for the past year or since the business was acquired.
                        • C. An income statement for the past 12 months or since the business was acquired.
                        • D. A list of equipment, chattels, and fixtures that are included with the business.
                        Answer: C
                        Question #2

                        A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

                        • A. The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
                        • B. The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
                        • C. The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.
                        • D. The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.
                        Answer: A
                        Question #3

                        Which of the following statements about industrial building components is correct?

                        • A. Loading docks are only used to off-load products or raw materials.
                        • B. Bay depth is an important consideration when determining the layout of an industrial process.
                        • C. Flat roofs are designed to be flat to hold water.
                        • D. Floor load refers to the weight of the building during construction.
                        Answer: B
                        Question #4

                        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. Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage 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. 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.
                        Answer: B
                        Question #5

                        A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

                        • A. Both tilt-up panels and pre-cast panels are formed off-site.
                        • B. Both tilt-up panels and pre-cast panels can lower construction costs.
                        • C. Pre-cast panels are more durable than tilt-up panels.
                        • D. Pre-cast panels cost much more than tilt-up panels.
                        Answer: B
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