LATEST PREX-1060A PRACTICE MATERIALS - 100% PASS-SURE QUESTIONS POOL

Latest PREX-1060A Practice Materials - 100% Pass-Sure Questions Pool

Latest PREX-1060A Practice Materials - 100% Pass-Sure Questions Pool

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q95-Q100):

NEW QUESTION # 95
What is the best indicator of a strong office market?

  • A. Low rental rates and many concessions
  • B. The number of free months given to new and renewing tenants by landlords in the office marketplace
  • C. The absorption rate, net absorption rate, and rising rental rates
  • D. When tenants have lots of options because of the amount of available space at favorable rates

Answer: C


NEW QUESTION # 96
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. Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.
  • 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. Include the current tax assessment as a schedule of the agreement.
  • D. Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.

Answer: D


NEW QUESTION # 97
A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

  • A. Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
  • B. Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
  • C. Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
  • D. Confirm the buyer's intended use adheres to all municipal zoning requirements

Answer: D


NEW QUESTION # 98
Which of the following is a risk associated with investing in commercial real estate?

  • A. The relative lack of capital growth during the holdover period
  • B. The fact that rent, leased space, and building size are fixed
  • C. The insufficiency of cash flow during the holding period
  • D. The relative lack of liquidity

Answer: D


NEW QUESTION # 99
A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

  • A. $80,000
  • B. $60,000
  • C. $130,000
  • D. $120,000

Answer: A


NEW QUESTION # 100
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