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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

A) Include the current tax assessment as a schedule of the agreement.
B) Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.
C) Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.
D) Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.

3. When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A) The farm is sold to a corporation and the HST is included in the selling price.
B) The farmer sells the farm to a relative.
C) The farm has been used for personal use.
D) The farmer uses a smaller portion of the farm for a residence.

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

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

5. Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?

A) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
B) A clause for the buyer to review the leases only after all conditions have been waived and accepted
C) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
D) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing

Solutions: