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

A Class C office building is usually more than…?

10 years old

30 years old

20 years old

5 years old

2 / 30

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

Eco-friendliness

Economy

Aesthetic features

Fire safety

3 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The overall value of a capital property

The rental gained from capital property

The profit realised from selling capital property

4 / 30

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

0.8

1.2

5 / 30

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

Satellite dish

Flagpole

Penthouse apartment

Air-conditioning equipment

6 / 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

7 / 30

Industrial properties are dominated by what type of construction?

Wood

Steel

Brick

Glass

8 / 30

Capital Gains Tax is charged at what rate?

30%

50%

40%

60%

9 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Sending reports electronically

Producing paper reports

Providing more than one copy of a report

10 / 30

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

5 days

10 days

30 days

20 days

11 / 30

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

120

1200

600

12 / 30

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

6460 ft.²

7460 ft.²

5460 ft.²

4460 ft.²

13 / 30

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

Respiratory problems

Headaches

Stress

Any/all of these

14 / 30

What does a wraparound mortgage do?

Adds additional funds on top of existing mortgages

Guarantees mortgage payments

Pays off existing mortgages

Combines all existing mortgages

15 / 30

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

Credit

Intent

Commitment

Guarantee

16 / 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?

90%

80%

60%

70%

17 / 30

Phase 1 of an environmental site assessment involves what?

All of these

Laboratory analysis for possible contamination

Visual checks for possible contamination

Contamination removal and treatment

18 / 30

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

1500 ft.²

2000 ft.²

1000 ft.²

500 ft.²

19 / 30

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

Another building

An open space

A public way

A lake or similar water source

20 / 30

Mixed-use buildings are taxable for…?

Commercial purposes but not residential purposes

Both residential and commercial purposes

Neither commercial purposes nor residential purposes

Residential purposes but not commercial purposes

21 / 30

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

325,000 ft.²

25,000 ft.²

125,000 ft.²

225,000 ft.²

22 / 30

Which of these does not enjoy an exemption from HST?

A school

A hospital

A solar powered factory

A building used by a charity

23 / 30

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

Site coverage

Zone coverage

Lot coverage

Ground coverage

24 / 30

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

The risk and capitalisation rate

The loan to value ratio

How much capital comes as debt

The safety margin

25 / 30

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

60%

40%

20%

10%

26 / 30

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

Steel

Concrete

Insulated concrete

Masonry

27 / 30

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

800,000 ft.²

600,000 ft.²

400,000 ft.²

1,000,000 ft.²

28 / 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

Arrange title insurance

Calculate tax liability

29 / 30

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

4%-10%

2%-4%

0%-1%

1%-2%

30 / 30

A development loan is given for what purpose?

Producing plans to build a property

Building properties in deprived areas

Preparing land for building construction

Building the external frame of the property

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