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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A salesperson is representing a buyer client in the purchase of a fully tenanted mixed-use building. The agreement of purchase and sale will be in the name of a corporation owned by the buyer and several other shareholders. Which of the following statements is correct regarding the signing of this agreement of purchase and sale?

A) A major shareholder of the company must sign and date over their printed name.
B) The buyer must sign and date below the printed name of the corporation.
C) An authorized signing officer of the company must sign and date over the words: "I haveauthority to bind the corporation" and below the printed registered name.
D) The general partner of the company must sign and date below the printed name of the limited company.

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

3. 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 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.
B) 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.
C) 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.
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.

4. 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) Create a business plan
B) Gather, organize, and verify all pertinent information
C) Estimate time frames required for due diligence and other offer conditions
D) Identify third-party professionals

5. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can conduct hearings that are heard by a minimum of five board members.
B) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
C) The Board can order farmers to modify practices for consistency with normal farm practices.
D) The Board can dismiss complaints if the disturbances are the result of normal farm practices.

Solutions: