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Humber College Updated PREX-1060A Exam Questions and Answers by moshe

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Humber College PREX-1060A Exam Overview :

Exam Name: Exam 4: Invigilated Theory Exam
Exam Code: PREX-1060A Dumps
Vendor: Humber College Certification: RESP Pre-Registration Phase
Questions: 120 Q&A's Shared By: moshe
Question 8

A buyer wants to purchase an industrial property for its international logistics and distribution center. Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

Options:

A.

A clause to obtain the necessary mortgage amount

B.

A clause to test the quality of the underground water source

C.

A clause to check the condition of the trucks and vans

D.

A clause to ensure the truck parking spaces and turning radius are sufficient

Discussion
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Question 9

A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

Options:

A.

$80,000

B.

$60,000

C.

$120,000

D.

$130,000

Discussion
Question 10

Which of the following practices maintains the stability and durability of a commercial property?

Options:

A.

Replacing old tenants with new tenants that pay much higher rent

B.

Increasing the base rent and additional rent in a slow economy

C.

Keeping good tenants

D.

Delaying improvements to the property to save costs

Discussion
Question 11

Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

Options:

A.

A design-build arrangement is a sale/leaseback arrangement.

B.

A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

C.

A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer’s specifications.

D.

A design-build arrangement is commonly associated with a seller's market.

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