Humber College PREX-1060A : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question #1
Which of the following accurately describes a landlord's commercial property insurance coverage?

A. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
B. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
C. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
D. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.

Question #2
A tenant receives the keys to their new retail space. When the tenant opens the door, they see evidence of a small fire on the walls near the electrical panel. Which of the following is an appropriate recommendation the salesperson could provide to the new tenant?

A. Meet with the property manager, review the lease, and determine a course of action.
B. Repair the damage and deduct the cost from the rent.
C. Contact a lawyer and immediately start a legal action for damages.
D. Terminate the lease and start looking for a new space.

Question #3
Which of the following is NOT determined by zoning bylaws?

A. The amount of rent a building may generate
B. Lot dimensions and parking requirements
C. The types of buildings that are permitted in a location, their height, and how they may be used
D. Where buildings and other structures may be located

Question #4
In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A. Exchange of legal documents
B. Remedy of title issues
C. Review of the Agreement of Purchase and Sale
D. Review of financial statements

Question #5
Which of the following is a risk associated with investing in commercial real estate?

A. The relative lack of capital growth during the holdover period
B. The relative lack of liquidity
C. The insufficiency of cash flow during the holding period
D. The fact that rent, leased space, and building size are fixed

Solutions: