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Last Updated: Nov 12, 2026
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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Commercial property transaction principles
|
Humber College Exam 4: Invigilated Theory Sample Questions:
Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?
- A. A clause for the buyer to review the leases only after all conditions have been waived and accepted
- B. A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
- C. A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
- D. A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
Correct Answer: D 🗳️
In regard to equipment at an industrial property that is being shown for sale, a salesperson representing a buyer should do all of the following, EXCEPT:
- A. Contact the seller's representative prior to the showing to gain awareness of safety and compliance requirements.
- B. Ensure they are informed as to whether the equipment shown will be relevant for the buyer's intended use.
- C. Ensure chattels or fixtures are not included in the sale or negotiated for in the agreement.
- D. Obtain clarification as to which equipment seen during the showing will be included in the purchase price of the property.
Correct Answer: C 🗳️
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 uses a smaller portion of the farm for a residence.
- B. The farmer sells the farm to a relative.
- C. The farm has been used for personal use.
- D. The farm is sold to a corporation and the HST is included in the selling price.
Correct Answer: C 🗳️
The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:
- A. Shareholder's equity
- B. Liabilities
- C. Assets
- D. Net operating income
Correct Answer: D 🗳️
A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?
- A. Tell the seller the usable size is 80 percent of the rentable size.
- B. Recommend the services of third-party professionals to measure it.
- C. Add a disclaimer to protect the seller from any discrepancy.
- D. Use a laser measuring device to take the measurements.
Correct Answer: B 🗳️
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