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

Phase 1 of an environmental site assessment involves what?

All of these

Visual checks for possible contamination

Contamination removal and treatment

Laboratory analysis for possible contamination

2 / 30

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

2%-4%

4%-10%

1%-2%

0%-1%

3 / 30

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

Respiratory problems

Stress

Any/all of these

Headaches

4 / 30

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

Lot coverage

Site coverage

Ground coverage

Zone coverage

5 / 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

6 / 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

7 / 30

Mixed-use buildings are taxable for…?

Both residential and commercial purposes

Commercial purposes but not residential purposes

Neither commercial purposes nor residential purposes

Residential purposes but not commercial purposes

8 / 30

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

1500 ft.²

1000 ft.²

500 ft.²

2000 ft.²

9 / 30

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

Satellite dish

Penthouse apartment

Air-conditioning equipment

Flagpole

10 / 30

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

Masonry

Steel

Insulated concrete

Concrete

11 / 30

A Class C office building is usually more than…?

20 years old

30 years old

10 years old

5 years old

12 / 30

Capital Gains Tax is charged on…?

The overall value of a capital property

The rental gained from capital property

The profit realised from selling capital property

The money spent renovating capital property

13 / 30

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

The risk and capitalisation rate

The loan to value ratio

The safety margin

How much capital comes as debt

14 / 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?

60%

70%

90%

80%

15 / 30

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

Aesthetic features

Eco-friendliness

Economy

Fire safety

16 / 30

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

225,000 ft.²

25,000 ft.²

125,000 ft.²

325,000 ft.²

17 / 30

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

10%

40%

20%

60%

18 / 30

Industrial properties are dominated by what type of construction?

Brick

Glass

Steel

Wood

19 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Providing more than one copy of a report

Producing paper reports

Sending reports electronically

20 / 30

Which of these does not enjoy an exemption from HST?

A solar powered factory

A school

A building used by a charity

A hospital

21 / 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

22 / 30

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

Commitment

Credit

Guarantee

Intent

23 / 30

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

400,000 ft.²

800,000 ft.²

1,000,000 ft.²

600,000 ft.²

24 / 30

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

120

1200

600

25 / 30

A development loan is given for what purpose?

Building properties in deprived areas

Producing plans to build a property

Preparing land for building construction

Building the external frame of the property

26 / 30

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

0.8

1.2

27 / 30

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

A public way

Another building

A lake or similar water source

An open space

28 / 30

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

30 days

5 days

10 days

20 days

29 / 30

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

5460 ft.²

6460 ft.²

4460 ft.²

7460 ft.²

30 / 30

Capital Gains Tax is charged at what rate?

60%

30%

40%

50%

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