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

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

Specifically protected from seizure for debt

Liable to seizure for debt

Nothing to do with the business

Immune from taxation

2 / 30

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

Any/all of them

Manufacturing

Storage

Distribution

3 / 30

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

Three months

Two months

Six months

Twelve months

4 / 30

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

At weekends

In the evenings

At unusual times

During normal working hours

5 / 30

A business partnership involves how many people or entities?

Five or more

Three or more

Two or more

Four or more

6 / 30

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

Leverage

Returns

Shelter from tax liability

Liquidity

7 / 30

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

Limited to what they have invested

Unlimited

Limited to 50% of the value of the business

Limited to the annual profit of the business

8 / 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?

75%

100%

50%

25%

9 / 30

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

90 days

30 days

15 days

6 days

10 / 30

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

Five years

Seven years

Three years

Two years

11 / 30

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

72 hours

48 hours

12 hours

24 hours

12 / 30

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

Trailer park

Resort complex

Boutique hotel

Ski lodge

13 / 30

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

All of these

They require more information

They generally take longer

Negotiations are often more complicated

14 / 30

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

Limit their tax liability

Get around zoning laws

Limit their debt liability

Share profits and/or losses

15 / 30

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

$15,000

$35,000

$55,000

$25,000

16 / 30

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

Boutique hotel

Municipal building

Bank

School

17 / 30

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

All of the profit they have taken out of the corporation

A maximum of 50% of the corporation income

A maximum of 50% of their income

The value of the shares they hold

18 / 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

19 / 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

Inaccurate/incomplete information

Deliberate fraud

20 / 30

Unregistered assistants in brokerages may undertake trading activities…?

If the salesperson is unwell

Under no circumstances

If the buyer or seller requests them to do so

If no one else is available

21 / 30

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

Retail

Architecture

Building

Finance

22 / 30

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

A small group of people

Municipal authorities

A small corporation

A single person

23 / 30

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

25% of the value of the business

50% of the value of the business

The amount they have invested

The annual profit of the business

24 / 30

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

High-tech systems

High-quality finishes

Prestige location

All of them

25 / 30

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

Small farm

Ski chalet

Wilderness camp

Motel

26 / 30

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

Rent

Leasehold improvements

Any/all of these

Operating costs

27 / 30

Brownfields land is land that requires…?

No work before building

Any/all of these

Cleanup and revitalisation

Special environmental protection

28 / 30

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

40%

80%

60%

100%

29 / 30

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

For insurance purposes

For training purposes

For remuneration purposes

For tax purposes

30 / 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

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