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

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

Exchange keys

Calculate tax liability

Arrange title insurance

Check there are no claims on the property

2 / 30

A development loan is given for what purpose?

Building the external frame of the property

Preparing land for building construction

Building properties in deprived areas

Producing plans to build a property

3 / 30

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

Fire safety

Eco-friendliness

Economy

Aesthetic features

4 / 30

Capital Gains Tax is charged at what rate?

30%

50%

40%

60%

5 / 30

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

1000 ft.²

2000 ft.²

1500 ft.²

500 ft.²

6 / 30

A Class C office building is usually more than…?

5 years old

20 years old

10 years old

30 years old

7 / 30

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

Satellite dish

Flagpole

Penthouse apartment

Air-conditioning equipment

8 / 30

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

0.8

1.2

9 / 30

Which of these does not enjoy an exemption from HST?

A hospital

A solar powered factory

A building used by a charity

A school

10 / 30

Appraisers may charge extra fees for what?

Producing paper reports

Dealing with lawyers

Sending reports electronically

Providing more than one copy of a report

11 / 30

Industrial properties are dominated by what type of construction?

Brick

Wood

Glass

Steel

12 / 30

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

Guarantee

Commitment

Intent

Credit

13 / 30

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

20%

40%

10%

60%

14 / 30

What does a wraparound mortgage do?

Pays off existing mortgages

Combines all existing mortgages

Guarantees mortgage payments

Adds additional funds on top of existing mortgages

15 / 30

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

1200

120

600

16 / 30

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

Stress

Any/all of these

Headaches

Respiratory problems

17 / 30

What are zoning setbacks?

Problems achieving zoning permission

Areas where zoning prohibits development

Maximum distances from boundaries and highways

Minimum distances from boundaries and highways

18 / 30

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

Concrete

Steel

Masonry

Insulated concrete

19 / 30

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

4%-10%

1%-2%

2%-4%

0%-1%

20 / 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

21 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The profit realised from selling capital property

The overall value of a capital property

The rental gained from capital property

22 / 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%

60%

90%

70%

23 / 30

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

The safety margin

The risk and capitalisation rate

How much capital comes as debt

The loan to value ratio

24 / 30

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

Zone coverage

Site coverage

Lot coverage

Ground coverage

25 / 30

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

A public way

A lake or similar water source

An open space

Another building

26 / 30

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

225,000 ft.²

25,000 ft.²

325,000 ft.²

125,000 ft.²

27 / 30

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

20 days

10 days

30 days

5 days

28 / 30

Phase 1 of an environmental site assessment involves what?

Contamination removal and treatment

Visual checks for possible contamination

All of these

Laboratory analysis for possible contamination

29 / 30

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

5460 ft.²

4460 ft.²

6460 ft.²

7460 ft.²

30 / 30

Mixed-use buildings are taxable for…?

Both residential and commercial purposes

Commercial purposes but not residential purposes

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

Your score is