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

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

10 days

30 days

5 days

20 days

2 / 30

Phase 1 of an environmental site assessment involves what?

Contamination removal and treatment

Laboratory analysis for possible contamination

Visual checks for possible contamination

All of these

3 / 30

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

Steel

Masonry

Concrete

Insulated concrete

4 / 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

5 / 30

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

2000 ft.²

1500 ft.²

1000 ft.²

500 ft.²

6 / 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

7 / 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

8 / 30

Industrial properties are dominated by what type of construction?

Glass

Wood

Steel

Brick

9 / 30

A development loan is given for what purpose?

Building the external frame of the property

Building properties in deprived areas

Producing plans to build a property

Preparing land for building construction

10 / 30

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

0%-1%

2%-4%

1%-2%

4%-10%

11 / 30

Capital Gains Tax is charged at what rate?

60%

30%

40%

50%

12 / 30

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

0.8

1.2

13 / 30

Capital Gains Tax is charged on…?

The overall value of a capital property

The money spent renovating capital property

The profit realised from selling capital property

The rental gained from capital property

14 / 30

A Class C office building is usually more than…?

30 years old

20 years old

5 years old

10 years old

15 / 30

What does a wraparound mortgage do?

Pays off existing mortgages

Guarantees mortgage payments

Combines all existing mortgages

Adds additional funds on top of existing mortgages

16 / 30

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

120

600

1200

17 / 30

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

Exchange keys

Check there are no claims on the property

Arrange title insurance

Calculate tax liability

18 / 30

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

400,000 ft.²

600,000 ft.²

800,000 ft.²

1,000,000 ft.²

19 / 30

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

Penthouse apartment

Satellite dish

Flagpole

Air-conditioning equipment

20 / 30

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

25,000 ft.²

225,000 ft.²

325,000 ft.²

125,000 ft.²

21 / 30

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

Aesthetic features

Economy

Fire safety

Eco-friendliness

22 / 30

What are zoning setbacks?

Minimum distances from boundaries and highways

Maximum distances from boundaries and highways

Areas where zoning prohibits development

Problems achieving zoning permission

23 / 30

Which of these does not enjoy an exemption from HST?

A solar powered factory

A school

A hospital

A building used by a charity

24 / 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%

25 / 30

Appraisers may charge extra fees for what?

Producing paper reports

Dealing with lawyers

Providing more than one copy of a report

Sending reports electronically

26 / 30

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

Respiratory problems

Any/all of these

Stress

Headaches

27 / 30

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

Another building

A public way

A lake or similar water source

An open space

28 / 30

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

Credit

Commitment

Intent

Guarantee

29 / 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%

90%

60%

80%

30 / 30

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

4460 ft.²

6460 ft.²

5460 ft.²

7460 ft.²

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