Commercial Real Estate Transactions - Test 02

Taking the Ontario Commercial Real Estate Transactions Test is an essential step for anyone looking to become a licensed real estate agent in Ontario. The test comprises 200 multiple-choice questions and answers, which are sourced from the official Ontario real estate course book. It mirrors the actual test and exam, making it an ideal practice tool for those seeking to pass on the first attempt. The test covers a broad range of topics including commercial real estate transactions, leasing, property management, and investment analysis. It is designed to assess the candidate’s knowledge and skills in relation to Ontario’s real estate market and legal requirements.

Commercial Real Estate Transactions - Practice Test 02

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

A conditional loan approval letter is known as a letter of…?

Guarantee

Commitment

Intent

Credit

2 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

Commercial purposes but not residential purposes

Both residential and commercial purposes

3 / 30

The Ontario Fire Code requires continuous and unobstructed entry and exit from a building to…?

A public way

Another building

An open space

A lake or similar water source

4 / 30

Non-resident sellers must pay their Capital Gains Tax within what time of closing a real estate sale?

30 days

10 days

5 days

20 days

5 / 30

A Class C office building is usually more than…?

30 years old

10 years old

20 years old

5 years old

6 / 30

By law, institutional lenders are restricted (unless insurance is present) to lending a maximum of what percentage of the appraised value or sale price of a property?

70%

80%

90%

60%

7 / 30

What are zoning setbacks?

Minimum distances from boundaries and highways

Problems achieving zoning permission

Maximum distances from boundaries and highways

Areas where zoning prohibits development

8 / 30

Which of these would not be given an exception from height restrictions?

Satellite dish

Flagpole

Penthouse apartment

Air-conditioning equipment

9 / 30

Industrial properties are dominated by what type of construction?

Glass

Steel

Brick

Wood

10 / 30

A neighbourhood shopping centre will have up to how much leasable area?

25,000 ft.²

125,000 ft.²

325,000 ft.²

225,000 ft.²

11 / 30

The maximum area of a lot on which it is permissible to build a building is known as…?

Lot coverage

Site coverage

Zone coverage

Ground coverage

12 / 30

The depreciation of office furniture and equipment which can be offset against tax is typically calculated as how much per year?

60%

10%

40%

20%

13 / 30

Capital Gains Tax is charged at what rate?

30%

60%

50%

40%

14 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The rental gained from capital property

The profit realised from selling capital property

The overall value of a capital property

15 / 30

Which of these tasks would you not expect to be undertaken by a buyer's lawyer?

Arrange title insurance

Check there are no claims on the property

Exchange keys

Calculate tax liability

16 / 30

A building with a total floor area of 120,000 feet would require how many parking spaces?

120

600

1200

17 / 30

Phase 1 of an environmental site assessment involves what?

Laboratory analysis for possible contamination

All of these

Contamination removal and treatment

Visual checks for possible contamination

18 / 30

The building is defined as a "small office building" if it has less than what amount of floor space?

7460 ft.²

4460 ft.²

6460 ft.²

5460 ft.²

19 / 30

Appraisers may charge extra fees for what?

Producing paper reports

Sending reports electronically

Dealing with lawyers

Providing more than one copy of a report

20 / 30

A super regional shopping centre has more than how much leasable area?

400,000 ft.²

1,000,000 ft.²

600,000 ft.²

800,000 ft.²

21 / 30

Mortgage brokers may charge what percentage of a loan amount as a service charge?

1%-2%

4%-10%

0%-1%

2%-4%

22 / 30

The typical office condominium offers office sizes up to around…?

500 ft.²

1500 ft.²

1000 ft.²

2000 ft.²

23 / 30

Lenders typically require a debt service coverage ratio of at least?

0.8

1.2

24 / 30

Which of these does not enjoy an exemption from HST?

A school

A building used by a charity

A solar powered factory

A hospital

25 / 30

A development loan is given for what purpose?

Building the external frame of the property

Preparing land for building construction

Building properties in deprived areas

Producing plans to build a property

26 / 30

If a building has "sick building syndrome" it may cause the occupants…?

Stress

Any/all of these

Headaches

Respiratory problems

27 / 30

What does a wraparound mortgage do?

Adds additional funds on top of existing mortgages

Pays off existing mortgages

Combines all existing mortgages

Guarantees mortgage payments

28 / 30

The leverage ratio is a financial measurement used to calculate…?

The risk and capitalisation rate

The safety margin

The loan to value ratio

How much capital comes as debt

29 / 30

Which of these types of construction requires additional fire resistant materials to prevent failure in a fire?

Insulated concrete

Steel

Masonry

Concrete

30 / 30

The LEED design standards offer benchmarks for what aspect of a building?

Fire safety

Eco-friendliness

Aesthetic features

Economy

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