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

In a limited partnership, who operates the business?

The limited partner

A third-party corporation

The general partner and the limited partner together

The general partner

2 / 30

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

Negotiations are often more complicated

All of these

They require more information

They generally take longer

3 / 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

Operating costs

Leasehold improvements

Rent

4 / 30

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

Prestige location

High-quality finishes

All of them

High-tech systems

5 / 30

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

Three years

Two years

Seven years

Five years

6 / 30

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

Motel

Ski chalet

Small farm

Wilderness camp

7 / 30

Unregistered assistants in brokerages may undertake trading activities…?

If no one else is available

Under no circumstances

If the salesperson is unwell

If the buyer or seller requests them to do so

8 / 30

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

Storage

Distribution

Manufacturing

Any/all of them

9 / 30

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

Limit their debt liability

Get around zoning laws

Share profits and/or losses

Limit their tax liability

10 / 30

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

Municipal authorities

A small corporation

A small group of people

A single person

11 / 30

Brownfields land is land that requires…?

No work before building

Cleanup and revitalisation

Special environmental protection

Any/all of these

12 / 30

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

25% of the value of the business

The annual profit of the business

50% of the value of the business

The amount they have invested

13 / 30

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

72 hours

12 hours

24 hours

48 hours

14 / 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

Six months

Three months

15 / 30

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

100%

80%

40%

60%

16 / 30

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

Retail

Finance

Architecture

Building

17 / 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

18 / 30

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

In the evenings

At unusual times

During normal working hours

At weekends

19 / 30

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

Municipal building

School

Boutique hotel

Bank

20 / 30

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

15 days

90 days

30 days

6 days

21 / 30

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

Specifically protected from seizure for debt

Nothing to do with the business

Liable to seizure for debt

Immune from taxation

22 / 30

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

Laziness on the part of the seller

Misunderstandings of government regulations

Deliberate fraud

Inaccurate/incomplete information

23 / 30

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

$25,000

$35,000

$15,000

$55,000

24 / 30

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

Limited to the annual profit of the business

Limited to 50% of the value of the business

Unlimited

Limited to what they have invested

25 / 30

A business partnership involves how many people or entities?

Three or more

Two or more

Five or more

Four or more

26 / 30

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

The value of the shares they hold

A maximum of 50% of the corporation income

All of the profit they have taken out of the corporation

A maximum of 50% of their income

27 / 30

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

Leverage

Returns

Shelter from tax liability

Liquidity

28 / 30

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

Higher rent costs

Adequate internal systems

Less desirable location

Well-maintained

29 / 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%

100%

75%

30 / 30

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

Boutique hotel

Trailer park

Resort complex

Ski lodge

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