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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Commercial leasing and property analysis
|
Humber College Exam 4: Invigilated Theory Sample Questions:
A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?
- A. The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
- B. The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
- C. The landlord and tenant may agree to split the deposit.
- D. The tenant can have the deposit back without signing a mutual release as it is not their fault.
Correct Answer: D 🗳️
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?
- A. The farmer sells the farm to a relative.
- B. The farmer uses a smaller portion of the farm for a residence.
- C. The farm is sold to a corporation and the HST is included in the selling price.
- D. The farm has been used for personal use.
Correct Answer: D 🗳️
A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?
- A. The rent increase cannot be more than the Consumer Price Index (CPI).
- B. The rent increase can be any amount.
- C. The rent increase cannot be higher than the guideline set by the government.
- D. The rent increase can be challenged by the Landlord and Tenant Board.
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. Estimate time frames required for due diligence and other offer conditions
- B. Identify third-party professionals
- C. Gather, organize, and verify all pertinent information
- D. Create a business plan
Correct Answer: D 🗳️
There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?
- A. A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
- B. Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.
- C. There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
- D. If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
Correct Answer: D 🗳️
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