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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A) Change the completion date by using an amendment to the agreement of purchase and sale.
B) Change the completion date by using a waiver.
C) A change is not necessary because the damage is out of the control of the buyer or the seller.
D) Change the completion date by using a notice of fulfillment.

2. Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A) An Ontario Land Surveyor can be hired to measure the space.
B) An architect can be hired to measure the space.
C) Space should be measured in accordance with BOMA standards.
D) The original plans should be used to determine the size of a unit.

3. Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A) A design-build arrangement is commonly associated with a seller's market.
B) A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.
C) A design-build arrangement is a sale/leaseback arrangement.
D) A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

4. A salesperson is drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:

A) Gather, organize, and verify all pertinent information
B) Create a business plan
C) Estimate time frames required for due diligence and other offer conditions
D) Identify third-party professionals

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 one waiver
B) Serving separate waivers
C) Serving separate notices of fulfillment
D) Serving one notice of fulfillment

Solutions: