Try Humber College : PREX-1060A valid & accurate questions and answers
Updated: Jun 01, 2026
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Humber College Exam 4: Invigilated Theory Sample Questions:
1. 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) The developer cannot find a building lot to build a detached home.
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) They are a good size for modern 18-hole golf courses.
2. Which statement about an Environmental Site Assessment (ESA) is NOT correct?
A) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
B) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
C) All new commercial properties must undergo an ESA before construction begins.
D) An ESA is not required if the buyer is purchasing the industrial property for their own use.
3. Which of the following is a risk associated with investing in commercial real estate?
A) The relative lack of liquidity
B) The fact that rent, leased space, and building size are fixed
C) The insufficiency of cash flow during the holding period
D) The relative lack of capital growth during the holdover period
4. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?
A) Notice of fulfillment
B) Waiver
C) Mutual release
D) Acknowledgment
5. Which of the following is a reason why an owner might consider redeveloping an industrial property?
A) The cost of relocating is low.
B) The existing building no longer provides the highest and best use of the site.
C) A similar building can be bought at a low price.
D) A redevelopment will seriously disrupt the current operation.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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