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

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?

A) They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
B) They are Canadian citizens or permanent residents of Canada.
C) They carry on a farming business generating a net profit of $100,000.
D) They submit the appropriate application semi-annually.

2. 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) The names of all parties to the lease
B) The commencement date of the lease
C) A description of the premises
D) The names of all the tenant's suppliers

3. The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?

A) The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.
B) The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
C) The cost approach is typically used to appraise income-generating properties.
D) The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.

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

A) Parking may be impacted by zoning requirements.
B) Parking may be impacted by the municipality's parking bylaw.
C) There may be minimum width and depth requirements for parking spaces.
D) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.

5. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?

A) Recommend the services of third-party professionals to measure it.
B) Tell the seller the usable size is 80 percent of the rentable size.
C) Use a laser measuring device to take the measurements.
D) Add a disclaimer to protect the seller from any discrepancy.

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