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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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) An owner who rehabilitates a brownfield property can receive tax incentives.
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) Brownfield properties can often be purchased at well below their potential market value.

2. A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

A) If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
B) If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
C) The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
D) The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.

3. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) An ESA is not required if the buyer is purchasing the industrial property for their own use.
B) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
C) All new commercial properties must undergo an ESA before construction begins.
D) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.

4. When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

A) Good transportation and distribution corridors do not matter to industrial investors and their tenants.
B) Industrial properties have a number of large, credit-worthy tenants and long-term leases.
C) Higher mortgage interest rates will provide a better return on investment.
D) Industrial properties have a lower capital gains tax at disposition.

5. Land developers purchase land for commercial, industrial, and residential projects. Tracts of land larger than five acres but smaller than 10 acres may appeal to land developers for various reasons. Which of the following is one of the reasons?

A) They are a good size for modern 18-hole golf courses.
B) They can be used for newly planned subdivisions.
C) They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.
D) The developer cannot find a building lot to build a detached home.

Solutions: