Humber College PREX-1060A : Exam 4: Invigilated Theory Exam
- Exam Code: PREX-1060A
- Exam Name: Exam 4: Invigilated Theory Exam
- Updated: Oct 10, 2026
- Q & A: 108 Questions and Answers
About Humber College PREX-1060A Exam
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Real Estate Transactions | - Commercial property transaction principles
|
Humber College Exam 4: Invigilated Theory Sample Questions:
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. Space should be measured in accordance with BOMA standards.
- B. An Ontario Land Surveyor can be hired to measure the space.
- C. An architect can be hired to measure the space.
- D. The original plans should be used to determine the size of a unit.
Correct Answer: D 🗳️
In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?
- A. The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
- B. The adjusted book value method takes goodwill into account when establishing the value of a business.
- C. A company's adjusted book value is entirely unrelated to its net worth.
- D. A company's adjusted book value should be equal to the actual market value of the business.
Correct Answer: B 🗳️
Which of the following is a reason why an owner might consider redeveloping an industrial property?
- A. A redevelopment will seriously disrupt the current operation.
- B. The existing building no longer provides the highest and best use of the site.
- C. The cost of relocating is low.
- D. A similar building can be bought at a low price.
Correct Answer: B 🗳️
While preparing to list a vacant retail site that allows new auto sales, the salesperson sees that there is an auto repair garage business next door with old and rusting metal storage tanks at the side of their building. Which of the following is the correct action for the salesperson to take?
- A. The salesperson should ask the owner of the garage whether they have thought about selling their property at this time.
- B. The salesperson should attempt to identify signs of contamination on the property and recommend an appropriate third-party expert to the seller client.
- C. The salesperson should ask the owner of the garage for more information and what course of action they recommend to assist a future purchaser of the site.
- D. The salesperson should include the information in the marketing material as it would be beneficial for an auto sales business to have a garage located nearby.
Correct Answer: B 🗳️
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. Estimate time frames required for due diligence and other offer conditions
- C. Identify third-party professionals
- D. Create a business plan
Correct Answer: D 🗳️
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