Free PREX-1060A Questions for Humber College Exam 4: Invigilated Theory PREX-1060A Exam as PDF & Practice Test Engine

Exam Code/Number: PREX-1060A
Exam Name/Title: Exam 4: Invigilated Theory Exam
Certification Provider: Humber College
Corresponding Certification: RESP Pre-Registration Phase

Exam Questions: 108
Updated On: Jul 06, 2026

Question #1

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.

Discussion 0

Correct Answer: B Vote an answer

Question #2

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. $130,000

B. $120,000

C. $80,000

D. $60,000

Discussion 0

Correct Answer: C Vote an answer

Question #3

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 farm has been used for personal use.

B. The farmer sells the farm to a relative.

C. The farmer uses a smaller portion of the farm for a residence.

D. The farm is sold to a corporation and the HST is included in the selling price.

Discussion 0

Correct Answer: A Vote an answer

Question #4

What is the best indicator of a strong office market?

A. The number of free months given to new and renewing tenants by landlords in the office marketplace

B. Low rental rates and many concessions

C. When tenants have lots of options because of the amount of available space at favorable rates

D. The absorption rate, net absorption rate, and rising rental rates

Discussion 0

Correct Answer: D Vote an answer

Question #5

A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A. A change is not necessary because the damage is out of the control of the buyer or the seller.

B. Change the completion date by using a waiver.

C. Change the completion date by using an amendment to the agreement of purchase and sale.

D. Change the completion date by using a notice of fulfillment.

Discussion 0

Correct Answer: C Vote an answer

Question #6

A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A. The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

B. The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.

C. The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.

D. The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

Discussion 0

Correct Answer: A Vote an answer

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