Commercial Real Estate Transactions

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 Class C office building is usually more than…?

30 years old

20 years old

5 years old

10 years old

2 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Sending reports electronically

Producing paper reports

Providing more than one copy of a report

3 / 30

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

1.2

0.8

4 / 30

What does a wraparound mortgage do?

Guarantees mortgage payments

Pays off existing mortgages

Adds additional funds on top of existing mortgages

Combines all existing mortgages

5 / 30

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

Masonry

Steel

Concrete

Insulated concrete

6 / 30

A development loan is given for what purpose?

Building the external frame of the property

Preparing land for building construction

Producing plans to build a property

Building properties in deprived areas

7 / 30

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

25,000 ft.²

325,000 ft.²

225,000 ft.²

125,000 ft.²

8 / 30

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

10%

60%

40%

20%

9 / 30

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

2%-4%

0%-1%

1%-2%

4%-10%

10 / 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

11 / 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?

80%

90%

70%

60%

12 / 30

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

6460 ft.²

5460 ft.²

7460 ft.²

4460 ft.²

13 / 30

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

Exchange keys

Arrange title insurance

Check there are no claims on the property

Calculate tax liability

14 / 30

Capital Gains Tax is charged on…?

The rental gained from capital property

The profit realised from selling capital property

The overall value of a capital property

The money spent renovating capital property

15 / 30

Industrial properties are dominated by what type of construction?

Glass

Wood

Brick

Steel

16 / 30

Phase 1 of an environmental site assessment involves what?

Contamination removal and treatment

All of these

Laboratory analysis for possible contamination

Visual checks for possible contamination

17 / 30

What are zoning setbacks?

Minimum distances from boundaries and highways

Maximum distances from boundaries and highways

Problems achieving zoning permission

Areas where zoning prohibits development

18 / 30

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

2000 ft.²

500 ft.²

1000 ft.²

1500 ft.²

19 / 30

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

Respiratory problems

Stress

Any/all of these

Headaches

20 / 30

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

Aesthetic features

Economy

Fire safety

Eco-friendliness

21 / 30

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

Another building

An open space

A public way

A lake or similar water source

22 / 30

Which of these does not enjoy an exemption from HST?

A solar powered factory

A school

A hospital

A building used by a charity

23 / 30

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

Air-conditioning equipment

Penthouse apartment

Flagpole

Satellite dish

24 / 30

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

5 days

20 days

30 days

10 days

25 / 30

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

1,000,000 ft.²

800,000 ft.²

600,000 ft.²

400,000 ft.²

26 / 30

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

The loan to value ratio

How much capital comes as debt

The safety margin

The risk and capitalisation rate

27 / 30

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

Commitment

Guarantee

Intent

Credit

28 / 30

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

Lot coverage

Ground coverage

Site coverage

Zone coverage

29 / 30

Capital Gains Tax is charged at what rate?

30%

40%

50%

60%

30 / 30

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

1200

120

600

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