Commercial Real Estate Transactions - Test 01

The test evaluates the ability of individuals to handle commercial real estate transactions in Ontario, assessing their understanding of relevant laws, regulations, and procedures. With 200 multiple-choice questions, the test covers various topics, including real estate financing, investment analysis, property valuations, and lease agreements. Preparing for the exam requires extensive study and dedication. Still, with the right resources, such as our free Ontario Commercial Real Estate practice test containing questions from the official course book, individuals can be confident in their abilities to pass the test with flying colors. Passing this test not only demonstrates expertise and professionalism but it also opens doors to new career opportunities within the commercial real estate industry in Ontario.

Commercial Real Estate Transactions - Practice Test 01

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Buildings used for which of these activities count as industrial properties?

Manufacturing

Any/all of them

Distribution

Storage

2 / 30

The liability of a shareholder in a corporation is restricted to…?

A maximum of 50% of the corporation income

A maximum of 50% of their income

The value of the shares they hold

All of the profit they have taken out of the corporation

3 / 30

Which of these would not be included in a list of institutional properties?

Boutique hotel

Municipal building

School

Bank

4 / 30

Which of these would not be included in a list of hospitality properties?

Trailer park

Boutique hotel

Ski lodge

Resort complex

5 / 30

A major disadvantage of investment in commercial property is often a lack of…?

Shelter from tax liability

Liquidity

Returns

Leverage

6 / 30

Brownfields land is land that requires…?

Special environmental protection

Cleanup and revitalisation

No work before building

Any/all of these

7 / 30

A Class A+ office building will have what percentage of its space occupied by institutional investors?

100%

40%

60%

80%

8 / 30

A Class A office building will have which of these features?

All of them

Prestige location

High-quality finishes

High-tech systems

9 / 30

Which of these would be a feature of a Class C office building?

Adequate internal systems

Well-maintained

Higher rent costs

Less desirable location

10 / 30

In a limited partnership, who operates the business?

The general partner and the limited partner together

The general partner

The limited partner

A third-party corporation

11 / 30

The majority of "errors and omissions" claims in commercial real estate deals arise from…?

Deliberate fraud

Misunderstandings of government regulations

Inaccurate/incomplete information

Laziness on the part of the seller

12 / 30

Commercial brokerages will usually seek salespersons who have an education or background in…?

Building

Architecture

Finance

Retail

13 / 30

If a deposit is forfeited, awarded, directed, or released by a seller, the listing brokerage is entitled to retain how much of it for services rendered?

50%

25%

75%

100%

14 / 30

In a limited partnership, the limited partner's liability cannot exceed…?

The amount they have invested

50% of the value of the business

The annual profit of the business

25% of the value of the business

15 / 30

Which of these would not be included in a list of recreational properties?

Ski chalet

Small farm

Wilderness camp

Motel

16 / 30

Unregistered assistants in brokerages may undertake trading activities…?

If the buyer or seller requests them to do so

If no one else is available

Under no circumstances

If the salesperson is unwell

17 / 30

A tenancy-related dispute may be taken to the Small Claims Court if the amount of damages claimed is less than…?

$35,000

$55,000

$25,000

$15,000

18 / 30

The difference between employees and independent contractors of a brokerage exists only…?

For training purposes

For remuneration purposes

For insurance purposes

For tax purposes

19 / 30

Commercial agreements generally provide at least how many days for buyers to satisfy conditions?

6 days

30 days

15 days

90 days

20 / 30

The precise wording of a signed lease for a commercial tenancy takes precedence over the Commercial Tenancies Act in issues regarding…?

Any/all of these

Leasehold improvements

Rent

Operating costs

21 / 30

The Building Code Act is amended by the Ministry of Municipal Affairs and Housing every…?

Three years

Five years

Seven years

Two years

22 / 30

Commercial real estate transactions are more complex than residential ones because…?

They require more information

They generally take longer

All of these

Negotiations are often more complicated

23 / 30

During a building process, a request for inspection must be made within what time of work proceeding to the next stage?

12 hours

48 hours

72 hours

24 hours

24 / 30

One difference between commercial real estate and residential real estate is that commercial real estate transactions generally take place…?

In the evenings

During normal working hours

At weekends

At unusual times

25 / 30

The seller or buyer must provide written consent and initials on a representation agreement if it is to last for more than…?

Two months

Three months

Twelve months

Six months

26 / 30

In a limited partnership, the general partner's liability is…?

Limited to 50% of the value of the business

Limited to the annual profit of the business

Limited to what they have invested

Unlimited

27 / 30

A business partnership involves how many people or entities?

Two or more

Five or more

Three or more

Four or more

28 / 30

In a joint-venture real estate project, a group of investors comes together in order to…?

Share profits and/or losses

Limit their tax liability

Get around zoning laws

Limit their debt liability

29 / 30

The personal assets of a person running a sole proprietorship business are…?

Immune from taxation

Specifically protected from seizure for debt

Liable to seizure for debt

Nothing to do with the business

30 / 30

In a sole proprietorship business undertaking, the business is owned and managed by…?

Municipal authorities

A small group of people

A single person

A small corporation

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