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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

A) Recommend the services of third-party professionals to measure it.
B) Use a laser measuring device to take the measurements.
C) Tell the seller the usable size is 80 percent of the rentable size.
D) Add a disclaimer to protect the seller from any discrepancy.

2. If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

A) They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
B) They carry on a farming business generating a net profit of $100,000.
C) They submit the appropriate application semi-annually.
D) They are Canadian citizens or permanent residents of Canada.

3. When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A) Residence
B) Barns and sheds
C) Fixed equipment
D) Goodwill

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

A) 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.
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 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.
D) 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.

5. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for verifying the soil condition or type that is five days in length.
B) A conditional time period for a property inspection that is 30 business days in length.
C) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
D) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.

Solutions: