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

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?

25%

75%

50%

100%

2 / 30

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

Negotiations are often more complicated

They require more information

All of these

They generally take longer

3 / 30

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

A single person

Municipal authorities

A small group of people

A small corporation

4 / 30

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

All of the profit they have taken out of the corporation

The value of the shares they hold

A maximum of 50% of the corporation income

A maximum of 50% of their income

5 / 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

Rent

Leasehold improvements

Operating costs

6 / 30

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

Unlimited

Limited to the annual profit of the business

Limited to what they have invested

Limited to 50% of the value of the business

7 / 30

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

$15,000

$25,000

$35,000

$55,000

8 / 30

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

12 hours

24 hours

48 hours

72 hours

9 / 30

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

Get around zoning laws

Share profits and/or losses

Limit their tax liability

Limit their debt liability

10 / 30

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

Manufacturing

Storage

Any/all of them

Distribution

11 / 30

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

Prestige location

All of them

High-tech systems

High-quality finishes

12 / 30

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

The annual profit of the business

50% of the value of the business

25% of the value of the business

The amount they have invested

13 / 30

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

At weekends

During normal working hours

In the evenings

At unusual times

14 / 30

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

Nothing to do with the business

Immune from taxation

Liable to seizure for debt

Specifically protected from seizure for debt

15 / 30

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

Architecture

Retail

Finance

Building

16 / 30

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

Twelve months

Two months

Three months

Six months

17 / 30

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

Wilderness camp

Motel

Small farm

Ski chalet

18 / 30

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

Two years

Three years

Seven years

Five years

19 / 30

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

Returns

Leverage

Liquidity

Shelter from tax liability

20 / 30

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

Boutique hotel

Resort complex

Ski lodge

Trailer park

21 / 30

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

Higher rent costs

Well-maintained

Adequate internal systems

Less desirable location

22 / 30

Unregistered assistants in brokerages may undertake trading activities…?

If the buyer or seller requests them to do so

Under no circumstances

If no one else is available

If the salesperson is unwell

23 / 30

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

90 days

30 days

15 days

6 days

24 / 30

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

School

Municipal building

Boutique hotel

Bank

25 / 30

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

60%

40%

80%

100%

26 / 30

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

Deliberate fraud

Misunderstandings of government regulations

Laziness on the part of the seller

Inaccurate/incomplete information

27 / 30

Brownfields land is land that requires…?

No work before building

Special environmental protection

Cleanup and revitalisation

Any/all of these

28 / 30

In a limited partnership, who operates the business?

The general partner and the limited partner together

A third-party corporation

The limited partner

The general partner

29 / 30

A business partnership involves how many people or entities?

Three or more

Five or more

Two or more

Four or more

30 / 30

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

For insurance purposes

For remuneration purposes

For training purposes

For tax purposes

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