Prepare With Top Rated High-quality PREX-1060A Dumps For Success in PREX-1060A Exam [Q34-Q49]

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Prepare With Top Rated High-quality PREX-1060A Dumps For Success in PREX-1060A Exam

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NO.34 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?

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.

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.

Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.

No, the property is not suitable, as the client’s business type and classification require heavy industrial zoning.

NO.35 In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

Exchange of legal documents

Review of financial statements

Review of the Agreement of Purchase and Sale

Remedy of title issues

NO.36 A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

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.

NO.37 A buyer has just been approved for a commercial mortgage to purchase a retail strip plaza. They meet with their salesperson to review the mortgage documents. The buyer expresses concern about possible late payments. Which of the following is an accurate statement about provisions in the commercial mortgage documents regarding late payments?

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.

NO.38 The cost approach is one method of real estate evaluation that an appraiser may use to estimate the value of a commercial property. Which of the following is NOT an accurate statement regarding the cost approach?

The cost approach is preferred for newer construction properties, as the appraiser would not need to make a subjective estimation of the accrued depreciation of the building.

The cost approach is typically used to appraise income-generating properties.

The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.

The cost approach is useful for the appraisal of property types for which sales and income data are scarce, such as industrial and special-purpose properties.

NO.39 When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

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.

NO.40 A salesperson is representing a commercial landlord in a lease negotiation. The landlord wants to sign back the offer with a higher rent. What should the salesperson make the landlord aware of regarding the rent increase?

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.

NO.41 When discussing economic considerations, interest rates, government policies, and infrastructure specific to industrial properties, why are investors attracted to industrial properties?

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.

NO.42 A salesperson is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

The salesperson should advise the buyer to consider the price of their products.

The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.

The salesperson should advise the buyer to consider their business’s predicted monthly inventory.

The salesperson should advise the buyer to consider the size of their products.

NO.43 A developer has completed the construction of a new commercial condominium project that is readyfor occupancy by the buyers. The condominium should be registered within approximately six months. Which of the following accurately describes a responsibility of the developer?

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.

NO.44 A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.

The landlord may offer a “tenant improvement allowance” which provides funds to cover thecosts of tenant improvements.

The tenant takes the premises in an “as is” condition and can complete whatever improvements they wish without landlord approval.

Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant’s property upon vacating the premises.

NO.45 A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer’s salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer’s own expense, and to the buyer’s satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.

The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.

The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.

The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.

NO.46 Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

The salesperson must verify the zoning information for the industrial property.

The salesperson must verify the previous tenant’s lease rates and terms.

The salesperson must verify whether the tenant’s intended use for the industrial property is permitted under the zoning bylaw.

The salesperson must verify the rates and terms of lease for the property.

NO.47 A seller provides you with architectural drawings of their building. Which statement is NOT correct?

Architectural drawings are source documents.

A photocopy of a source document can be used to verify information.

If changes are made to source documents, they are still valid if you have the original document.

Other types of source documents include surveys and tax records.

NO.48 Issues that occurred prior to the closing of a transaction may be uncovered by title and non-title searches during due diligence. Which of the following is a non-title search concern?

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

NO.49 A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.

The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.

The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

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