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PREX-1060A Exam Dumps : Exam 4: Invigilated Theory Exam

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Exam 4: Invigilated Theory Exam Questions and Answers

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Question 1

A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

Options:

A.

Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.

B.

Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.

C.

Potential to recover capital through refinancing is an advantage of owning commercial real estate.

D.

Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.

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Question 2

A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

Options:

A.

The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.

B.

The tenant's signage is considered a trade fixture and shall remain the tenant's property.

C.

The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant’s expense.

D.

The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

Question 3

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?

Options:

A.

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

B.

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

C.

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

D.

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

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