Humber College PREX-1060A : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following is a reason why an owner might consider redeveloping an industrial property?

A) The cost of relocating is low.
B) A redevelopment will seriously disrupt the current operation.
C) A similar building can be bought at a low price.
D) The existing building no longer provides the highest and best use of the site.

2. Which of the following statements regarding heavy industrial use and light industrial use is correct?

A) Clay production is an example of light industrial use.
B) Light industrial use usually results in more noise and heavier traffic.
C) Heavy industrial use can produce more pollution than other commercial activities.
D) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.

3. 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?

A) 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.
B) The cost approach is typically used to appraise income-generating properties.
C) The cost approach is preferred for older construction properties, as calculating depreciation on them is fairly straightforward.
D) 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.

4. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
B) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
C) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
D) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.

5. The operating costs of a commercial building are usually higher than those of buildings that do not have any common areas. Common area maintenance (CAM) is referred to as the landlord's operating costs attributable to factors that affect the common areas. Which of the following is NOT one of those factors?

A) Supervision
B) Operations
C) Repairs
D) Depreciation

Solutions: