PREX-1060A Exam 4: Invigilated Theory Exam Questions and Answers

Bay depth is an important consideration when determining the layout of an industrial process.

Loading docks are only used to off-load products or raw materials.

Flat roofs are designed to be flat to hold water.

Floor load refers to the weight of the building during construction.

Storage

Kitchens/lunchrooms

Fitting rooms

Boardrooms, private offices, and workstations

Industrial properties have a lower capital gains tax at disposition.

Good transportation and distribution corridors do not matter to industrial investors and their tenants.

Higher mortgage interest rates will provide a better return on investment.

Industrial properties have a number of large, credit-worthy tenants and long-term leases.

A stable internet connection

Sufficient lighting

A high voltage and ampere supply

A proper ventilation system

The rent increase cannot be higher than the guideline set by the government.

The rent increase cannot be more than the Consumer Price Index (CPI).

The rent increase can be any amount.

The rent increase can be challenged by the Landlord and Tenant Board.

$80,000

$60,000

$120,000

$130,000

Comprises a blend of old and new stores

Must be located in a small, older community

Consists of newer, free-standing buildings only

Structure size typically ranges from 100,000 to 130,000 square feet

The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.

Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.

Remuneration can be calculated based on the difference between the listing price and the actual rental price.

Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.

Ensuring inspections are being carried out as required

Contacting contractors for quotes for repairing or replacing equipment

Reviewing whether the technical components have been recently replaced or upgraded

Learning what types of equipment are in the building and having a general understanding of theirage and condition

The date of the agreement of purchase and sale

The balance due clause

The irrevocability clause

The purchase price

The date of the agreement of purchase and sale

The balance due clause

The irrevocability clause

The purchase price

Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.

Economic development offices provide background information on local, provincial, and federal research and development incentives.

Economic development offices have important resources for those seeking suitable commercial sites for business operations.

Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

Include the current tax assessment as a schedule of the agreement.

Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.

Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.

Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.

Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.

Ensure there is parking and repair space available for commercial trucks.

Confirm that the contract of the condominium property management company has been renewed for at least 10 years.

Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.

The options for late payments are the same for every lender.

Each lender has their own method for dealing with late payments.

There are no penalties for late payments in a commercial mortgage.

Penalties for late payments will be added to the monthly rent.

A design-build arrangement is a sale/leaseback arrangement.

A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.

A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer’s specifications.

A design-build arrangement is commonly associated with a seller's market.

Conduct an analysis of why the transaction will not be carried out.

Pass the transaction to the broker of record so that the broker will take care of it.

Obtain the remuneration owed.

Terminate the transaction and disengage from it.

Repairs

Supervision

Operations

Depreciation

The salesperson should explain that clear span refers to the amount of floor area that is clear of interference from columns and walls.

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.

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.

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.

Meet with the property manager, review the lease, and determine a course of action.

Repair the damage and deduct the cost from the rent.

Contact a lawyer and immediately start a legal action for damages.

Terminate the lease and start looking for a new space.

The general partner of the company must sign and date below the printed name of the limited company.

The buyer must sign and date below the printed name of the corporation.

An authorized signing officer of the company must sign and date over the words: "I haveauthority to bind the corporation" and below the printed registered name.

A major shareholder of the company must sign and date over their printed name.

The buyer replaces the seller as the owner of the corporation.

The buyer assumes all assets and accepts all liabilities of the business.

The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.

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.

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.

If the information on the subject building’s utilities is available, then a potential buyer will not put a condition in the offer.

The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.

The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.

It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.

It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant’s usable area.

It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.

It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

The total area measurements

The maximum floor load of every unit

The number of sprinklers required in every unit

The total remuneration payable for a 20-year lease

The types of buildings that are permitted in a location, their height, and how they may be used

Lot dimensions and parking requirements

The amount of rent a building may generate

Where buildings and other structures may be located

An Ontario Land Surveyor can be hired to measure the space.

Space should be measured in accordance with BOMA standards.

An architect can be hired to measure the space.

The original plans should be used to determine the size of a unit.

Agrees to pay additional rent for a gross lease.

Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.

Cannot pay rent to the property manager and must pay directly to the property owner.

The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.

The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.

The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.

The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.

They are a good size for modern 18-hole golf courses.

They can be used for newly planned subdivisions.

They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.

The developer cannot find a building lot to build a detached home.

The office building next door has an overflow parking lot.

The neighboring property includes a restaurant, a dental clinic, and a law office.

There is vacant land nearby with a small pond with discolored standing water.

There is a residential neighborhood and playground nearby.

The salesperson should explain that to achieve capital growth, the client should be a long-term investor.

The salesperson should explain that a better return on investment will be achieved with rising interest rates.

The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.

The salesperson should explain that the client should always consider being a short-term investor.

Liens and encumbrances that are registered against the property

The property's use doesn't comply with municipal zoning bylaws

A registered right of way that blocks the buyer's intended use of the property

The seller is not entitled to transfer title to the property for some reason