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Exam 4: Invigilated Theory Exam

Last Update 22 hours ago Total Questions : 120

The Exam 4: Invigilated Theory Exam content is now fully updated, with all current exam questions added 22 hours ago. Deciding to include PREX-1060A practice exam questions in your study plan goes far beyond basic test preparation.

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Question # 4

The key mechanical components of commercial buildings include heating, cooling, and electrical systems. Which of the following tasks is NOT usually completed by the salesperson?

A.

Ensuring inspections are being carried out as required.

B.

Contacting contractors for quotes for repairing or replacing equipment.

C.

Reviewing whether the technical components have been recently replaced or upgraded.

D.

Learning what types of equipment are in the building and having a general understanding of their age and condition.

Question # 5

Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A.

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

B.

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

C.

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

D.

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

Question # 6

A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A.

The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.

B.

The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.

C.

The tenant can have the deposit back without signing a mutual release as it is not their fault.

D.

The landlord and tenant may agree to split the deposit.

Question # 7

When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A.

Goodwill

B.

Fixed equipment

C.

Residence

D.

Barns and sheds

Question # 8

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.

Requesting an RSC is mandatory in all real estate transactions.

B.

It is not a material fact; thus, it is a formality for the buyer to get it.

C.

With other documents, it will inform the buyer of any legal issues attached to the title.

D.

It contains records pertaining to a property's financial condition.

Question # 9

In regard to equipment at an industrial property that is being shown for sale, a salesperson representing a buyer should do all of the following, EXCEPT:

A.

Contact the seller's representative prior to the showing to gain awareness of safety and compliance requirements.

B.

Ensure they are informed as to whether the equipment shown will be relevant for the buyer's intended use.

C.

Ensure chattels or fixtures are not included in the sale or negotiated for in the agreement.

D.

Obtain clarification as to which equipment seen during the showing will be included in the purchase price of the property.

Question # 10

A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

A.

A description of the premises

B.

The names of all the tenant's suppliers

C.

The commencement date of the lease

D.

The names of all parties to the lease

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