Free Humber College PREX-1060A Exam Questions

Become Humber College Certified with updated PREX-1060A exam questions and correct answers

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Total 122 Questions | Updated On: Jun 05, 2025

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Question 1

Which of the following is a reason why an owner might consider redeveloping an industrial property?

A : The cost of relocating is low.

B : A similar building can be bought at a low price.

C : The existing building no longer provides the highest and best use of the site.

D : A redevelopment will seriously disrupt the current operation.

Answer: C

Question 2

A salesperson sells an office building using the Commercial Agreement of Purchase and Sale along with aschedule that lists all the fixtures, chattels, and rental items of the office building. After closing the real estatetransaction, a dispute arises between the seller and the buyer about which chattels, fixtures, and rental items ofthe office building were to be included and which were to be excluded. Which of the following is NOT anaccurate statement regarding the salesperson's actions related to negotiating chattels, fixtures, and rental items?

A : The salesperson should clearly list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.

B : The salesperson should specifically exclude all fixtures that are not a part of the transaction since fixtures are considered a part of the property and are normally included in the purchase price.

C : The salesperson should clearly describe and list the fixtures and chattels in the Agreement of Purchase and Sale and mark each item as an exclusion or inclusion.

D : The salesperson should specifically exclude all chattels that are not a part of the transaction since chattels are considered a part of the property and are normally included in the purchase price.

Answer: D

Question 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 : Good transportation and distribution corridors do not matter to industrial investors and their tenants.

C : Higher mortgage interest rates will provide a better return on investment.

D : Industrial properties have a number of large, credit-worthy tenants and long-term leases.

Answer: D

Question 4

A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

A : Zoning bylaws specify the permitted land uses throughout a municipality.

B : Municipal zoning bylaws overrule all other laws with respect to land uses and issuance of building permits in Ontario.

C : New commercial construction and redevelopment must comply with zoning bylaws.

D : Municipalities have zoning bylaws that divide the city into different land uses or zones.

Answer: B

Question 5

An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A : Serving separate waivers

B : Serving one waiver

C : Serving separate notices of fulfillment

D : Serving one notice of fulfillment

Answer: C

Page: 1 / 25

Total 122 Questions | Updated On: Jun 05, 2025

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