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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 list all rental items and service contracts, as these will not be included in the purchase price of the real property being purchased.
B) 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.
C) 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.
D) 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.

2. Which of the following is NOT determined by zoning bylaws?

A) Where buildings and other structures may be located
B) The amount of rent a building may generate
C) Lot dimensions and parking requirements
D) The types of buildings that are permitted in a location, their height, and how they may be used

3. 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) State that the buyer is assuming all animals on an "as is" basis.
C) The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.
D) State that the seller will continue the day-to-day farm operations until closing.

4. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Amount of advertising and publicity
B) Access to raw materials used in the region
C) Proximity to museums and historical sites
D) Price trend for detached homes in nearby neighborhoods

5. Which of the following statements regarding heavy industrial use and light industrial use is correct?

A) Light industrial use usually results in more noise and heavier traffic.
B) Heavy industrial use can produce more pollution than other commercial activities.
C) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
D) Clay production is an example of light industrial use.

Solutions: