Humber College PREX-1060A Actual Free Exam Questions & Community Discussion

Exam Code/Number: PREX-1060A
Exam Name/Title: Exam 4: Invigilated Theory Exam
Certification Provider: Humber College
Corresponding Certification: RESP Pre-Registration Phase

Exam Questions: 108
Updated On: Jun 01, 2026

Question #37

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. To play it safe, the salesperson should amend the condition with May 18 as the expiry date.

C. 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.

D. The buyer can use the same amendment to ask for a change of the closing date.

Discussion 0

Correct Answer: A Vote an answer

Question #38

If a retail unit has a usable area of 3,482 sq. ft. with a conversion rate of 1.1235, what would the tenant's rentable area be?

A. The retail tenant's rentable area would be 3,073 sq.ft.

B. The retail tenant's rentable area would be 3,912 sq.ft.

C. The retail tenant's rentable area would be 3,482 sq. ft.

D. The retail tenant's rentable area would be 3,605 sq. ft.

Discussion 0

Correct Answer: B Vote an answer

Question #39

A salesperson discusses with a buyer the potential advantages of purchasing brownfields for redevelopment.
What is NOT an advantage for the buyer of a brownfield property?

A. Brownfield properties can often be purchased at well below their potential market value.

B. The contaminants in brownfields contain precious metals that can be sold to earn additional income.

C. Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.

D. An owner who rehabilitates a brownfield property can receive tax incentives.

Discussion 0

Correct Answer: B Vote an answer

Question #40

A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A. No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.

B. Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.

C. Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.

D. Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.

Discussion 0

Correct Answer: A Vote an answer

Question #41

Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A. The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.

B. The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.

C. The buyer assumes all assets and accepts all liabilities of the business.

D. The buyer replaces the seller as the owner of the corporation.

Discussion 0

Correct Answer: A Vote an answer

Question #42

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. The general partner of the company must sign and date below the printed name of the limited company.

D. 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.

Discussion 0

Correct Answer: D Vote an answer

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