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PREX-1060A Exam Cram & PREX-1060A Authorized Certification

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q11-Q16):

NEW QUESTION # 11
Both the landlord and the tenant have responsibilities in the management of their relationship as per the commercial lease agreement. Which of the following is NOT an accurate statement regarding the roles and responsibilities of landlords and tenants as per the Commercial Agreement to Lease?

A. Tenants are obligated to ensure they have adequate tenant insurance for their property.
B. Not all commercial leases require the landlord to perform repairs and maintenance.
C. The landlord must address their tenants' issues in a timely manner in general but more so when the issue can result in serious and costly consequences.
D. All commercial leases require that tenants keep everything in and about the property, including all points of entry and exit, in good repair at all times.

Answer: D

NEW QUESTION # 12
A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

A. It is not a material fact; thus, it is a formality for the buyer to get it.
B. It contains records pertaining to a property's financial condition.
C. With other documents, it will inform the buyer of any legal issues attached to the title.
D. Requesting an RSC is mandatory in all real estate transactions.

Answer: C

NEW QUESTION # 13
An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A. Serving one notice of fulfillment
B. Serving one waiver
C. Serving separate waivers
D. Serving separate notices of fulfillment

Answer: D

NEW QUESTION # 14
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. A clause to obtain the necessary mortgage amount
B. A clause to test the quality of the underground water source
C. A clause to ensure the truck parking spaces and turning radius are sufficient
D. A clause to check the condition of the trucks and vans

Answer: C

NEW QUESTION # 15
A buyer is purchasing a farm and all the animals are included in the sale price. The buyer is worried the animals could become infected with disease prior to closing, so the salesperson inserts a clause in the agreement of purchase and sale to address that issue. Which of the following should NOT be included in the clause to protect the buyer?

A. The number of animals based on type, gender, and health; if the number is not the same at closing, the price will be adjusted.
B. State that the buyer is assuming all animals on an "as is" basis.
C. A condition requiring a check-up of each animal by a predetermined veterinarian during due diligence.
D. State that the seller will continue the day-to-day farm operations until closing.

Answer: B

NEW QUESTION # 16
......

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Alan Ford Alan Ford

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