Check the Available PREX-1060A Exam Dumps with 108 QA’s UPDATED 2025 [Q28-Q52]

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Check the Available PREX-1060A Exam Dumps with 108 QA’s UPDATED 2025

Download PREX-1060A Exam Dumps Questions to get 100% Success in Humber College

Q28. A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement’s signage clause?

The tenant’s signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.

The tenant’s signage is considered a trade fixture and shall remain the tenant’s property.

The tenant’s signage shall be immediately removed at the end of their lease term(s) at the tenant’s expense.

The tenant’s signage, from approvals to installation and ongoing maintenance, shall be at thetenant’s own expense.

Q29. Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

An Ontario Land Surveyor can be hired to measure the space.

Space should be measured in accordance with BOMA standards.

An architect can be hired to measure the space.

The original plans should be used to determine the size of a unit.

Q30. A buyer client and their salesperson are doing a visual check of the industrial property that the buyer is planning to purchase. When they get to the rear of the property, the salesperson observes a potential source of contamination. Which of the following factors is likely the cause of concern for the salesperson?

The office building next door has an overflow parking lot.

The neighboring property includes a restaurant, a dental clinic, and a law office.

There is vacant land nearby with a small pond with discolored standing water.

There is a residential neighborhood and playground nearby.

Q31. Audited and unaudited statements provide the financial status of a business to potential buyers. What is the main difference between audited and unaudited financial statements?

Unaudited financial statements are prepared by Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.

Audited financial statements provide an accurate picture of the financial status of a business; unaudited financial statements may only contain partially reviewed information.

Unaudited financial statements are prepared by accounting students; audited financial statements are completed by accountants who have received their professional designation.

Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.

Q32. A salesperson representing a client who is selling an office property has received some documents from the seller and is trying to organize them. Which of the following documents is NOT needed by the salesperson or seller when selling the property?

Telephone bills

Private mortgage form

Income verification documents

Environmental site assessments

Q33. In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

A company’s adjusted book value should be equal to the actual market value of the business.

The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.

A company’s adjusted book value is entirely unrelated to its net worth.

The adjusted book value method takes goodwill into account when establishing the value of a business.

Q34. 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?

A clause to obtain the necessary mortgage amount

A clause to test the quality of the underground water source

A clause to check the condition of the trucks and vans

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

Q35. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

The municipality will take the number of available parking spaces and divide it by the property’s gross leasable area.

The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

The municipality will take the number of available parking spaces and divide it by the property’s net leasable area.

The municipality will take the property’s gross leasable area and divide it by the number of available parking spaces.

Q36. A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

Zoning bylaws specify the permitted land uses throughout a municipality.

Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.

New commercial construction and redevelopment must comply with zoning bylaws.

Municipalities have zoning bylaws that divide the city into different land uses or zones.

Q37. Which of the following statements about economic development offices is NOT correct?

Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.

Economic development offices provide background information on local, provincial, and federal research and development incentives.

Economic development offices have important resources for those seeking suitable commercial sites for business operations.

Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

Q38. A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women’s apparel store. Which of the following would NOT be included in the agreement to lease?

A description of the premises

The names of all the tenant’s suppliers

The commencement date of the lease

The names of all parties to the lease

Q39. A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

The rent increase cannot be higher than the guideline set by the government.

The rent increase cannot be more than the Consumer Price Index (CPI).

The rent increase can be any amount.

The rent increase can be challenged by the Landlord and Tenant Board.

Q40. A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.

Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.

Potential to recover capital through refinancing is an advantage of owning commercial real estate.

Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.

Q41. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer’s industrial business?

Businesses need to transport materials to and from the site.

Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.

Some trucks may need to park on the property overnight.

Incoming trucks could have difficulty if there is a lack of on-site trailer storage.

Q42. A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.

It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant’s usable area.

It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.

It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

Q43. 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?

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

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

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

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

Q44. Which of the following is most likely to be a factor in an appraisal for an industrial property?

Amount of advertising and publicity

Proximity to museums and historical sites

Price trend for detached homes in nearby neighborhoods

Access to raw materials used in the region

Q45. Which of the following statements regarding heavy industrial use and light industrial use is correct?

Clay production is an example of light industrial use.

Light industrial use usually results in more noise and heavier traffic.

Heavy industrial use can produce more pollution than other commercial activities.

Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.

Q46. A salesperson and their commercial seller client are discussing and preparing to list the seller’s office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

The salesperson should not disclose latent defects that are known to the seller as they could affect the seller’s ability to obtain a high price for the property.

The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.

The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.

The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.

Q47. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

There may be minimum width and depth requirements for parking spaces.

Parking may be impacted by zoning requirements.

Parking may be impacted by the municipality’s parking bylaw.

Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.

Q48. 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?

Acknowledgment

Notice of fulfillment

Mutual release

Waiver

Q49. A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

Pre-cast panels cost much more than tilt-up panels.

Both tilt-up panels and pre-cast panels can lower construction costs.

Pre-cast panels are more durable than tilt-up panels.

Both tilt-up panels and pre-cast panels are formed off-site.

Q50. A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

The salesperson should advise the buyer to consider the price of their products.

The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.

The salesperson should advise the buyer to consider their business’s predicted monthly inventory.

The salesperson should advise the buyer to consider the size of their products.

Q51. A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?

Confirm the buyer’s intended use adheres to all municipal zoning requirements

Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection

Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller’s business

Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund

Q52. Which of the following is NOT determined by zoning bylaws?

The types of buildings that are permitted in a location, their height, and how they may be used

Lot dimensions and parking requirements

The amount of rent a building may generate

Where buildings and other structures may be located