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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Regulatory and professional obligations
|
Humber College Exam 4: Invigilated Theory Sample Questions:
An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?
- A. The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
- B. The buyer can use the same amendment to ask for a change of the closing date.
- C. To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
- D. The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
Correct Answer: A 🗳️
Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?
- A. Traffic counts
- B. Financial health of the company
- C. Demographics
- D. Surrounding uses
Correct Answer: B 🗳️
All of the following aspects of a commercial property may affect its eligibility for Leadership in Energy and Environmental Design (LEED) certification, EXCEPT:
- A. Vacancy rate
- B. Energy efficiency
- C. Innovative elements
- D. Sustainability
Correct Answer: A 🗳️
Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?
- A. Obtain the remuneration owed.
- B. Pass the transaction to the broker of record so that the broker will take care of it.
- C. Terminate the transaction and disengage from it.
- D. Conduct an analysis of why the transaction will not be carried out.
Correct Answer: D 🗳️
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. Change the completion date by using an amendment to the agreement of purchase and sale.
- B. A change is not necessary because the damage is out of the control of the buyer or the seller.
- C. Change the completion date by using a waiver.
- D. Change the completion date by using a notice of fulfillment.
Correct Answer: A 🗳️
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