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

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

Headaches

Respiratory problems

Any/all of these

Stress

2 / 30

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

Insulated concrete

Masonry

Steel

Concrete

3 / 30

Which of these does not enjoy an exemption from HST?

A building used by a charity

A school

A solar powered factory

A hospital

4 / 30

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

Air-conditioning equipment

Satellite dish

Penthouse apartment

Flagpole

5 / 30

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

Ground coverage

Site coverage

Lot coverage

Zone coverage

6 / 30

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

20%

60%

10%

40%

7 / 30

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

2000 ft.²

500 ft.²

1000 ft.²

1500 ft.²

8 / 30

Capital Gains Tax is charged at what rate?

50%

40%

30%

60%

9 / 30

A Class C office building is usually more than…?

30 years old

20 years old

10 years old

5 years old

10 / 30

Industrial properties are dominated by what type of construction?

Brick

Steel

Wood

Glass

11 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Producing paper reports

Providing more than one copy of a report

Sending reports electronically

12 / 30

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

An open space

A lake or similar water source

A public way

Another building

13 / 30

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

7460 ft.²

5460 ft.²

4460 ft.²

6460 ft.²

14 / 30

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

400,000 ft.²

800,000 ft.²

600,000 ft.²

1,000,000 ft.²

15 / 30

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

0%-1%

1%-2%

2%-4%

4%-10%

16 / 30

What are zoning setbacks?

Areas where zoning prohibits development

Maximum distances from boundaries and highways

Minimum distances from boundaries and highways

Problems achieving zoning permission

17 / 30

Phase 1 of an environmental site assessment involves what?

Contamination removal and treatment

All of these

Laboratory analysis for possible contamination

Visual checks for possible contamination

18 / 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?

70%

60%

90%

80%

19 / 30

A development loan is given for what purpose?

Preparing land for building construction

Building properties in deprived areas

Producing plans to build a property

Building the external frame of the property

20 / 30

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

1.2

0.8

21 / 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

Exchange keys

Calculate tax liability

Arrange title insurance

22 / 30

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

Eco-friendliness

Economy

Aesthetic features

Fire safety

23 / 30

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

20 days

30 days

10 days

5 days

24 / 30

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

600

1200

120

25 / 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

26 / 30

Mixed-use buildings are taxable for…?

Both residential and commercial purposes

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

Commercial purposes but not residential purposes

27 / 30

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

The loan to value ratio

How much capital comes as debt

The risk and capitalisation rate

The safety margin

28 / 30

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

Intent

Commitment

Guarantee

Credit

29 / 30

What does a wraparound mortgage do?

Pays off existing mortgages

Adds additional funds on top of existing mortgages

Combines all existing mortgages

Guarantees mortgage payments

30 / 30

Capital Gains Tax is charged on…?

The overall value of a capital property

The rental gained from capital property

The money spent renovating capital property

The profit realised from selling capital property

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