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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) Brownfield properties can often be purchased at well below their potential market value.
B) An owner who rehabilitates a brownfield property can receive tax incentives.
C) The contaminants in brownfields contain precious metals that can be sold to earn additional income.
D) Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.

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

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

A) Replacing old tenants with new tenants that pay much higher rent
B) Keeping good tenants
C) Delaying improvements to the property to save costs
D) Increasing the base rent and additional rent in a slow economy

4. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?

A) Terminate the transaction and disengage from it.
B) Obtain the remuneration owed.
C) Pass the transaction to the broker of record so that the broker will take care of it.
D) Conduct an analysis of why the transaction will not be carried out.

5. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
B) The Board can conduct hearings that are heard by a minimum of five board members.
C) The Board can order farmers to modify practices for consistency with normal farm practices.
D) The Board can dismiss complaints if the disturbances are the result of normal farm practices.

Solutions: