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Humber College PREX-1060A Exam Syllabus Topics:

SectionObjectives
Topic 1: Commercial Property Types- Industrial Properties
  • 1. Industrial Site Evaluation
  • 2. Light Industrial Uses
  • 3. Heavy Industrial Uses
- Retail and Office Properties
  • 1. Retail Condominiums
  • 2. Office Buildings
  • 3. Property Management Considerations
Topic 2: Commercial Property Transactions- Commercial Leasing
  • 1. Lease Structures
  • 2. Tenant Representation
  • 3. Management Fees
- Commercial Property Sales
  • 1. Due Diligence Procedures
  • 2. Property Valuation
  • 3. Commercial Agreements of Purchase and Sale
Topic 3: Financial Analysis- Business Financial Review
  • 1. Audited and Unaudited Financial Statements
  • 2. Investment Performance Evaluation
  • 3. Cash Flow Analysis
- Commercial Financing
  • 1. Late Payment Provisions
  • 2. Mortgage Terms and Conditions
  • 3. Commercial Mortgages
Topic 4: Property Development and Land Use- Taxation and Regulatory Considerations
  • 1. Municipal Compliance
  • 2. Property Tax Adjustments
  • 3. Assessment Issues
- Development Analysis
  • 1. Highest and Best Use
  • 2. Site Servicing Requirements
  • 3. Environmental Due Diligence

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer client is interested in purchasing an industrial property for their manufacturing business. The buyer's salesperson informs them of the building criteria, along with the minimum requirements for clear height and clear span that would be suitable for the buyer's business. What should the salesperson explain to the buyer regarding clear span?

A) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the highest point of the ceiling or roof component.
B) The salesperson should explain that clear span refers to the total amount of floor area in the space, including the space that is occupied between columns and walls.
C) The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.
D) The salesperson should explain that clear span refers to the unobstructed vertical distance from the floor to the bottom of the lowest ceiling or roof component.


2. Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A) The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.
B) The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.
C) The buyer replaces the seller as the owner of the corporation.
D) The buyer assumes all assets and accepts all liabilities of the business.


3. The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A) Repairs
B) Operations
C) Depreciation
D) Supervision


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

A) Clay production is an example of light industrial use.
B) Light industrial use usually results in more noise and heavier traffic.
C) Heavy industrial use can produce more pollution than other commercial activities.
D) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.


5. A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

A) Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.
B) Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
C) No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
D) Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: C

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