Humber College RESP Pre-Registration Phase PREX-1060A Braindumps

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

Question #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. They can be used for newly planned subdivisions.
B. The developer cannot find a building lot to build a detached home.
C. They are a good size for modern 18-hole golf courses.
D. They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.

Question #2
A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A. A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
B. A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.
C. The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
D. The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.

Question #3
When discussing the sale of a business and establishing the asking price, there are questions a salesperson must ask the owner. Which of the following is one of them?

A. Is the ownership of the building a corporation or a partnership?
B. Is inventory included in the sale of this business?
C. Is there any easement on the property?
D. What is the construction cost of the building?

Question #4
A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A. A surveyor's certificate for the unit
B. A sketch of the seller's floor layout
C. An opinion from the seller's lawyer
D. An opinion from the property manager

Question #5
A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?

A. Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
B. The success of ventures often rests in the availability and suitability of financing.
C. It does not matter; mortgaging does not affect cash flow and yields.
D. The investor is afforded the opportunity to enhance yield.

Solutions: