Humber College PREX-1060A

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Review of the Agreement of Purchase and Sale
B) Review of financial statements
C) Remedy of title issues
D) Exchange of legal documents

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

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

3. Which of the following accurately describes a landlord's commercial property insurance coverage?

A) A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
B) A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.
C) A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
D) A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.

4. An office building is being sold. The agreement of purchase and sale includes multiple conditions that protect the buyer. Each condition has a different expiry date, and they will be fulfilled and completed at different times. The conditions do not have waiver provisions. In this situation, all conditions can be removed by:

A) Serving one notice of fulfillment
B) Serving one waiver
C) Serving separate notices of fulfillment
D) Serving separate waivers

5. An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

A) The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
B) The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
C) The buyer can use the same amendment to ask for a change of the closing date.
D) To play it safe, the salesperson should amend the condition with May 18 as the expiry date.

Solutions: