Humber College PREX-1060A Value Pack (Frequently Bought Together)

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?

• A. The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.
• B. The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.
• C. The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.
• D. The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.

A seller provides you with architectural drawings of their building. Which statement is NOT correct?

• A. A photocopy of a source document can be used to verify information.
• B. Other types of source documents include surveys and tax records.
• C. If changes are made to source documents, they are still valid if you have the original document.
• D. Architectural drawings are source documents.

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. The success of ventures often rests in the availability and suitability of financing.
• B. It does not matter; mortgaging does not affect cash flow and yields.
• C. The investor is afforded the opportunity to enhance yield.
• D. 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.

A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

• A. Remuneration can be calculated based on the difference between the listing price and the actual rental price.
• B. Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.
• C. The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.
• D. Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.

A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

• A. The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.
• B. The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.
• C. The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.
• D. The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.