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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
B) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
C) An ESA is not required if the buyer is purchasing the industrial property for their own use.
D) All new commercial properties must undergo an ESA before construction begins.

2. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Notice of fulfillment
B) Mutual release
C) Acknowledgment
D) Waiver

3. An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A) Serving one notice of fulfillment
B) Serving separate waivers
C) Serving one waiver
D) Serving separate notices of fulfillment

4. A tenant has an established business with good growth potential for the foreseeable future and wants to rent a retail property for expansion. If the landlord wants to have the opportunity to boost the rent when the tenant's sales are good, which type of lease would you recommend to the landlord?

A) Net lease
B) Gross lease
C) Percentage lease
D) Triple net lease

5. In regard to cash flow into and out of a business, which of the following is correct?

A) Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.
B) Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.
C) Sales proceeds cash flow does not affect investor decisions.
D) Operating cash flow can be positive or negative.

Solutions: