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Exam Humber College PREX-1060A Outline | PREX-1060A Exam Labs

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q99-Q104):

NEW QUESTION # 99
In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A. Every new commercial property must undergo an ESA prior to construction.
B. Local building departments use ESAs as the basis for changes to municipal zoning bylaws.
C. ESAs are regulated under the Canadian Environmental Protection Act.
D. An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

Answer: A

NEW QUESTION # 100
A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

A. There is vacant land nearby with a small pond with discolored standing water.
B. There is a residential neighborhood and playground nearby.
C. The office building next door has an overflow parking lot.
D. The neighboring property includes a restaurant, a dental clinic, and a law office.

Answer: A

NEW QUESTION # 101
An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A. The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
B. The buyer can use the same amendment to ask for a change of the closing date.
C. The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
D. To play it safe, the salesperson should amend the condition with May 18 as the expiry date.

Answer: C

NEW QUESTION # 102
A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

A. A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.
B. The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.
C. State that the seller will continue the day-to-day farm operations until closing.
D. State that the buyer is assuming all animals on an "as is" basis.

Answer: D

NEW QUESTION # 103
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 requires the buyer to acquire suitable land and construct a building themselves.
D. A design-build arrangement is a sale/leaseback arrangement.

Answer: B

NEW QUESTION # 104
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