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

Industrial properties are dominated by what type of construction?

Steel

Glass

Wood

Brick

2 / 30

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

1500 ft.²

2000 ft.²

500 ft.²

1000 ft.²

3 / 30

Appraisers may charge extra fees for what?

Sending reports electronically

Producing paper reports

Dealing with lawyers

Providing more than one copy of a report

4 / 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%

5 / 30

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

Guarantee

Credit

Intent

Commitment

6 / 30

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

120

1200

600

7 / 30

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

Headaches

Respiratory problems

Any/all of these

Stress

8 / 30

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

Lot coverage

Ground coverage

Zone coverage

Site coverage

9 / 30

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

0%-1%

4%-10%

1%-2%

2%-4%

10 / 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%

90%

70%

80%

11 / 30

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

Satellite dish

Air-conditioning equipment

Flagpole

Penthouse apartment

12 / 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

13 / 30

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

Check there are no claims on the property

Arrange title insurance

Exchange keys

Calculate tax liability

14 / 30

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

Fire safety

Economy

Eco-friendliness

Aesthetic features

15 / 30

Capital Gains Tax is charged at what rate?

30%

60%

40%

50%

16 / 30

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

Insulated concrete

Steel

Masonry

Concrete

17 / 30

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

225,000 ft.²

325,000 ft.²

125,000 ft.²

25,000 ft.²

18 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The rental gained from capital property

The overall value of a capital property

The profit realised from selling capital property

19 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

Commercial purposes but not residential purposes

Both residential and commercial purposes

20 / 30

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

The risk and capitalisation rate

How much capital comes as debt

The loan to value ratio

The safety margin

21 / 30

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

An open space

Another building

A public way

A lake or similar water source

22 / 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

23 / 30

Phase 1 of an environmental site assessment involves what?

Laboratory analysis for possible contamination

Visual checks for possible contamination

Contamination removal and treatment

All of these

24 / 30

A development loan is given for what purpose?

Building the external frame of the property

Producing plans to build a property

Building properties in deprived areas

Preparing land for building construction

25 / 30

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

400,000 ft.²

1,000,000 ft.²

800,000 ft.²

600,000 ft.²

26 / 30

Which of these does not enjoy an exemption from HST?

A school

A hospital

A building used by a charity

A solar powered factory

27 / 30

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

0.8

1.2

28 / 30

What are zoning setbacks?

Areas where zoning prohibits development

Minimum distances from boundaries and highways

Problems achieving zoning permission

Maximum distances from boundaries and highways

29 / 30

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

4460 ft.²

7460 ft.²

5460 ft.²

6460 ft.²

30 / 30

A Class C office building is usually more than…?

20 years old

30 years old

10 years old

5 years old

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